Buffet’s Best Inflation Bet

Hi everyone and welcome to the Yellow Tunnel community, an aggressive short-term trading service dedicated to all classes of traders seeking to elevate their trading skills, market awareness, and trading profits. 

Traders are in a good environment of short-term profits as volatility remains high with many leading stocks experiencing wide price swings. The market caught a firm bid in the past ten trading sessions as the narrative of ebbing economic data portends inflation peaking in April and sets up the economy for a soft landing in the second half of 2022. So far, the market is seeing this scenario as a glass half full. 

The main drivers of this newfound bullish sentiment are rooted in the milder Personal Consumption Index (PCE) reading that showed a month-over-month increase of 0.2% versus 0.9% for March, a big miss on the ADP non-farm payrolls that came in at 128K versus consensus of 288K. And Friday’s employment data showed a slight decline in month-over-month wage gains to 0.3% from 0.5% in May. 

To put it simply, less is more for market bulls – the argument being the case for a deceleration in inflation is stronger than the case for accelerating inflation. As long as traders can build on this view, then it argues well that a bottom for the market is in place and pullbacks can be used as buying opportunities in the right sectors and stocks. But it takes a lot of analytical tooling to get it right, which is why we at Yellow Tunnel depend so heavily on data-driven AI analytics to drive our decision-making for our best trades. 

To this point, I can’t emphasize how vital it is for blog readers and members of the Yellow Tunnel community to keep referring to our Live Trading Room so as to maintain a close tie of how our AI platform is navigating us in and out of select trades. It’s FREE and I want highly encourage everyone to sign up to the Live Trading Room and keep checking in throughout the trading day. 

Every Monday and Wednesday I highlight our best strategies and potential trading setups via the DISCORD server. It’s the future of bringing together a trading community’s total services, educational products, live chat venues, support, news, how-to tutorials, webinars, live-trading demonstrations, and tons of market analysis. It is incredibly interactive and full of crucial and timely information. Just go to: 

https://discord.gg/YjBfkaqGGu

I also want to emphasize to traders how vital a stop-loss discipline is to winning and being successful in an unforgiving market. We employ specified stop-loss instructions with every trade. The buy and sell programs controlled by high-frequency related algorithms can create great profits or cause sudden losses, so it is imperative to maintain an element of controlling risk with each trade. 

CURRENT TRADING LANDSCAPE

One look at the charts of the major averages shows the broad market rallying up to within a few points of their 50 DMA where there would naturally be some overhead technical resistance barring some breaking bullish news out of Ukraine. There has been some good leadership in this current uptick, led by mega-cap tech, which is crucial for any rally to take on a formidable profile and punch up through the downtrend lines. 

Strong earnings from Salesforce.com Inc. (CRM), HP Inc. (HP), Elastic N.V. (ESTC), MongoDB Inc. (MDB), Semtech Corp. (SMTC), NetApp Inc. (NTAP), Pure Storage Inc. (PSTG) and CrowdStrike Holdings Inc. (CRWD) all posted better-than-expected quarterly results that helped to greatly fortify confidence in IT business spending and again lends credibility that a slowdown being fueled by Fed tightening won’t result in a recession, but rather sustained growth at a slower pace. 

As of Thursday’s close, the $SPY closed higher 1.9%, at $417, right below long-term resistance at $420. The value/reflationary ($VTV) closed higher 0.8%, at $144, at the 50 DMA. The technology sector ($QQQ) closed higher 2.7%, at $314, approaching the $50 DMA.

The $DXY closed lower, near the $102 level, trading below the December 2016 high. The $TLT closed higher 0.1%, at $116, and facing the key short-term resistance. The ten-year yield closed lower at 2.91%. The $VIX closed lower, near the 25-level approaching the key support at $25.

The $SPY short-term support level is at $406 followed by $396. The SPY overhead resistance is at $420 and then $430.      

I would be a seller into the rally and have a NEUTRAL portfolio at this time. Short-term the market is overbought, undergoing the bottoming process, and can continue the rebound lasting multiple weeks.      

The "BUY" signal based on the Aggressive Power Trader Portfolio for tomorrow is at $4.

NEW PROFIT ACCELERATOR TRADER SERVICE 

We recently launched our new Profit Accelerator Trader service that we at Yellow Tunnel are very excited about. Each week, our expert traders use our AI Tools to provide the Top Bullish and Bearish Stocks, each with an Entry Price, Target Profit, and Stop Loss. 

This new service is special because it offers real-time alerts via SMS and access to Vlad's live positions and orders. When I put together this system, I wanted to be in the fight with other investors. That’s why I don’t play on your emotions to sell newsletters - I put my money where my mouth is.

Every trade recommendation that I make using this system – comes straight from the list of trade recommendations I use myself.

Not only that but every trade I make is logged in detail for you to review at any time. You can see my entire trading history, updated LIVE so that you can see, learn from, and even copy my trading strategy.

Signals have historically averaged over 85% accuracy in my live trading since inception. Sometimes we hold position 2-5 days by using options (selling OTM Calls and Puts spread) and targeting 1% target gain and 1% stop loss using stock price. The green color should be interpreted as a bullish signal and the red as a bearish signal.

How To Use Our Signals

Once you become a member, I encourage you to review our Live Trading Room recordings to see how I trade Aggressive Power Trader signals in my account. A snapshot of how we produce our Live Trading Room Sessions shows how we pack in a lot of information that can be accessed from whatever device you’re driving.

As a reminder, consider buying near the "BUY" level with a "10 days prediction" higher than the close price. In our live trading room, I usually hold a position for 1-2 days.

I allocate less than 5% of my portfolio if the position is being held overnight. On average, less than 1% of the portfolio should be at risk if you own a position for less than one day.

I enter a position at the predicted LOW (BUY) price or yesterday's close price. My stop loss is 1% and my target gain is 1% of the stock price. I target 75% accuracy using these signals.

Few subscribers asked about Options trading using the signals provided. Please review live trading room recordings. I often sell OTM credit put spread using weekly options and collect 0.5% using stock price. For example, if the stock is trading at $100, I would sell an OTM Put (strike less than 100) with an option BID price close to $0.5.

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Jaime Diamond’s Forecast: 

ECONOMIC 

HURRICANE

Don’t Worry!  (If You’re Very Rich!)

My Artificial Intelligence program will continue to help pick out money-making stocks.  Join me!  It’s like buying Home Depot and Lowes stocks with a Cat 5 hurricane barreling down. 

Here’s how to start:  Inflation over 8% - No Worries!  

Click Here for over an 80% discount.  

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SECTOR SPOTLIGHT

With each passing week, the one sector that keeps proving to be the most reliable to trade within has been energy. Every time the price of crude and natural gas incurs selling pressure, buyers will step in and bid both oil and gas right back up. Even as Saudi Arabia, OPEC, and non-OPEC nations have agreed to increase daily output production to fill the shortage created by the embargo on Russian exports, just this transition is viewed as disruptive in the futures markets. 

Leveraging on the bullish theme argues well for trading the SPDR SP Oil & Gas Exploration & Production ET (XOP) as a solid basket of leading stocks that are displaying excellent upside momentum as fundamentals for the underlying companies continues to strengthen with each quarter of higher energy prices. 

With an AUM of $4.8 billion, an average daily volume of roughly 8 million shares, and a highly liquid options chain with plenty of open interest and liquidity, trading XOP is an ideal vehicle to eliminate single-stock risk and not sacrifice volatility. The top ten holdings are all very strong stocks within technically bullish patterns. 

When we apply our AI-driven Forecast Toolbox, we get a Model Grade “B” rating with an implied Predicted Resistance price target of $191.18 which is well above the $161 level where XOP currently trades. 

Such a powerful upside forecast puts XOP on our short list of bullish trading opportunities we will be considering for next week’s trading lineup. There is serious money being made in the energy sector if traded properly. Take full advantage of the next up leg for energy prices and get in on this trade with us. 

TRADE OF THE WEEK 

Few things are more comforting in the world of trading than knowing that Warren Buffet and Berkshire Hathaway are the bid side of a major company in a sector with strong momentum. Occidental Petroleum Corp. (OXY) is the latest target of Buffet and his team, aggressively accumulating stock. In the most recent filings, it is now estimated that Berkshire Hathaway owns $142.3 million shares representing 15.2% of total outstanding shares in OXY. 

Occidental is a big player in the Permian Basin where as much as 80% of its U.S. production comes from. Quarterly revenue and earnings are strong, up 55.7% year-over-year to $8.35 billion, beating estimates by $470 million. Earnings came in at $2.12 per share, beating estimates by $0.09. The company has a three-pronged strategy going forward – pay down debt, buy back stock and raise the dividend. In the latest quarter, the company paid down $3.3 billion in debt, or about 12% of total debt. 

Looking at the YTD chart, OXY sets up very well for a continuation of its bull trend with this light volume pullback offering our subscribers a very attractive entry point within the trading strategies we are constructing for next week. 

Backing up our newfound bullish sentiment on OXY is our AI-based Seasonal Chart that is showing a “Higher” probability reading for the next 20 trading days, followed by some consolidation and then a resumption of the primary uptrend several weeks out. So much can and will change in the data day-to-day and week-to-week when dealing with so many fluid variables that can push the market sharply higher or lower on any given headline or development, such as what is taking place in the energy sector. 

This is where our AI tools are so crucial in determining precise entry and exit points. I’ll be looking to trade OXY this week on the first pullback. Don’t miss this trade!

We tie our Tradespoon Live Trading Room to help you manage the current inflationary wave. And we update our closed positions daily. Our AI platform works seamlessly to provide our subscribers with the most robust trading experience available anywhere in the market today. 

The beauty of our AI-driven system is that we are always equipped to bring new trade ideas to our members. Trades in best-of-breed stocks and ETFs that are not yet recognized by the larger universe of traders. 

We really pride ourselves on this kind of discovery process to bring trades with very high probability risk/reward parameters to members throughout each week. Our track record speaks for itself from the standpoint of a Winning Trades Percentage, Average Return Per Trade, and Net Gain.

Considering the volatile landscape of late, we’re taking advantage of market dislocation and valuation distortion. We’re striving to help our members ring the register all the time and this is why serious traders should not trade without checking in with market-proven AI tools. 

The consistent performance of our services is just incredible. Our historical stellar performance is made possible by being right on 85.01% of all trades that we made, with an average profit of 36.98% per trade on our collective trade recommendations. To my knowledge, this trading performance is one-of-a-kind that stands alone in the marketplace for superior trading advice where our numbers and results speak for themselves. 

Once you’ve become a member of any of our services, I highly encourage you to view the instructional videos on how to best use your membership and participate in live weekly strategy roundtable workshops that are also archived in the event that they need to be viewed at a later time.

Traders seeking the most-timely directional trading strategies where historically over 85% of all my trades were profitable to come alongside the Yellow Tunnel community and make one of our services your go-to AI trading platform for no-excuses Trading.

Our AI platform crunches and analyzes thousands of proprietary performance indicators to help identify the next big trades to help you supercharge your portfolio!

Go to our website at www.yellowtunnel.com and make one of our services your default trading system where the AI that powers my all-world, the proprietary platform, can help you make 2022 the best year on record for your trading portfolio.

Have a wonderful week ahead, continue to embrace the people of Ukraine in your thoughts and prayers, and let’s create some meaningful wealth together in 2022.