NVDA Tanked: Set To Surge
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It finally came to where the mighty consumer-driven U.S. economy had to square with persistently high inflation, and it showed up in the May data. Household spending declined to just 0.2% for the month and down from 0.6% in April. The combination of high energy and food prices and increasing yields put a damper on consumer sentiment readings and ultimately was born out of today’s PCE report.
It took no time for Wall Street to take down their GDP forecasts in which one service, S&P Global Market Intelligence, said they estimate gross domestic product to contract at a 0.7% annual rate in the second quarter, which ended Thursday. The Atlanta Fed GDPNow report goes on record as calling for negative -1.0% growth for the second quarter.
In reaction to the soft spending data, bond yields are lower, the 10-year Treasury yield back under 3.0% while selling picked up in energy and all across the commodity space. It’s as if there is a coming to terms with the fact that there won’t be a quick fix to the damage done by inflation. It’s going to take time which raises real concern about stagflation setting that invariably leads to a recession of some magnitude.
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.
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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
The $SPY closed lower 0.8%, at $377, below the key long-term support - $380. The value/reflationary ($VTV) closed lower 0.3%, at $132, near at the May low. The technology sector ($QQQ) closed lower 1.2%, at $280, right below the 50 DMA.
The $DXY closed lower, near the $104 level, trading below the December 2016 high. The $TLT closed higher 0.9%, at $115, and facing the key long-term resistance. The ten-year yield closed lower at 2.95%, below the key short-term support - of 3.20%. The $VIX closed higher, near the 28 level.
The $SPY short-term support level is at $380 followed by $364. The SPY overhead resistance is at $396 and then $404.
I would be a seller into the rally and have a NEUTRAL portfolio at this time. Short term the market is oversold and undergoing the bottoming process.
The earnings season continues with ($STZ, $MU, and $NKE) scheduled to announce their earnings this week.
The "BUY" signal based on the Aggressive Power Trader Portfolio for tomorrow is at the $375 level using SPY and the "SELL" signal is at $387 for short-term traders.
If you are trading options consider selling premium with September and October expiration dates.
Based on our models, the market (SPY) will trade in the range between $350 and $420 for the next 2-8 weeks.
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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MORE RECENTLY, MY CRASH-PROOF & INFLATION-PROOF ALGORITHM HAS HELPED ME BAG 1259 OUT OF 1481 WINNING TRADES (85%) DURING THESE CHANGING TIMES.
Dear Subscriber,
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Instead of telling you what to do (after I trade)…
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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.
As a Lifetime Subscriber, you can see my trading updates LIVE so that you can Do-As-I-Do and even copy my trading strategy.
From January 1, 2020, to today my win rate is an astounding 85%. I’ve made 1508 trades since then with 1282 of them having made money. **
There are even ways I alert you immediately when I’m making a trade, so you can watch me do it live.
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SECTOR SPOTLIGHT
One of the most controversial sectors with arguably the most upside potential at current prices belongs to the semiconductor and semiconductor equipment industry. I truly enjoy trading this sector from the long side following big pullbacks, and at present, chip and chip equipment stocks have declined sharply this past week.
VanEck Semiconductor ETF (SMH) is an excellent way to trade the chip sector with the top 10 holdings accounting for just about 60% of total assets. Shares of SMH trade with attractive volatility, like the individual stocks, but eliminate single stock risk.
For traders that want to consider being early birds in this potential bullish rotation, the SPDR S&P Bank ETF (KBE) offers an excellent way to cast a net over those leading bank stocks with the best fundamental and technical properties at this time. KBE is a unique ETF in that it is very diversified with the top ten holdings comprising only 13.1% of total assets and only three major money center banks as top holdings.
From a very short-term perspective, the chart of SMH is choppy and soft, whereas taking a look at the long-term chart, SMH is coming right to the 5-year primary uptrend line that very well presents an optimal entry point.
Our AI-powered Forecast Toolbox puts a 10-day upside price target on SMH at $229.38 which implies a 9% potential appreciation. The bottom line is that SMH is very oversold and tradeable at current levels. But make sure you follow our lead on when and how to buy and sell this ETF in a timely and profitable manner.
TRADE OF THE WEEK
Traders seeking a single-stock trade in the semiconductor sector should highly consider Nvidia Corp. (NVDA) as a go-to stock and options trading vehicle.
Looking at the long-term chart of NVDA we can see that after the stock has worked its way back to a major technical shelf at $150 where its powerful fundamentals should provide a compelling entry point for traders looking for historical key levels.
Similar to KBE, when we apply the Seasonal Chart, to NVDA, we get one near-term “Lower” probability reading for the next 20 days and three “Higher” probability readings for the next 30, 40, and 50 trading days off this reaction low. This is where we defer to our AI data which greatly helps to manage to be overly cautious. After all, for every seller of the stock, there is someone on the other side of that trade, figuring the bottom is in or is close to being in.
This is where our AI tools are so crucial in determining precise entry and exit points. I’ll be looking to trade NVDA this week on this pullback that will be one trade not to miss out on. It is one of the really great stocks to trade from the long side when short-term rallies are in the offing, even during protracted downtrends such as the present.
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 37.21% 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.
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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.