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. 

Selling pressure characterized this past week as September is living up to its historical reputation as the worst month of the year for stock market performance. The on-again-off-again risk sentiment surrounding the Delta variant and the narrative about just how strong growth will be in the months ahead has pressured most of the reflation stocks where there is a real value relative to the extended tech sector. 

Talk of the Fed tapering is also keeping traders on edge after seeing weekly jobless claims fall to their lowest level since before the pandemic started. However, the market has adapted well to COVID-19 news and managed to maintain its composure without giving back more than 1%-2%, this week being indicative of the market’s technical resilience. 

The question of whether another rotation out of growth and into a value is not a matter of if, but when – and this is exactly where the power of our AI models in our Weekly Power Trader advisory service becomes so valuable.

TRADING LANDSCAPE  

The $SPY continued to lose momentum and reached the $448 level. The value/reflationary stocks traded lower this week. Technology stocks also struggled.

The $DXY started to break down its multi-month bullish momentum, but short-term oversold. The next level of resistance is at $93. The $TLT bounced back above the 50-day moving average (the bullish medium-term for the market). 

Based on the steep correction in the reflationary stocks, strong dollar, and overbought technology stocks, the market will continue the pullback in September. The $SPY short-term support level is at $445, followed by $441. The SPY overhead resistance is at $455. I expect the next stage of pullback to resume this week or next. I would be a buyer of value stocks on pullbacks and sell technology stocks on rallies.

I would consider rebalancing the portfolio at this point to be more market-neutral. The second wave of selling will continue for the next 2-4 weeks.  Market corrections are never a one-way trade.

Based on our models, the $SPY can pull back 3-5% from the all-time highs in the next 2-4 weeks. If you are trading options consider selling premium with October and November expiration dates.

"BUY" signal based on the Aggressive Power Trader Portfolio for tomorrow is at $448 level using SPY and "SELL" signal is at $452 for short-term traders. 

Based on our models, the market (SPY) will trade in the range between $435 and $455 for the next 2-4 weeks.    

NEW WEEKLY DYNAMIC POWER TRADER SERVICE 

We recently launched our new Earnings Power 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. 

What makes this new service so special is that 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 86% accuracy in my live trading since inception. Sometimes we hold positions for 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 color 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 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 OTM put (strike less than 100) with option BID price close to $0.5.

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How even 9% of missed gains 

add up quickly…

My name is Vlad Karpel, and I developed this proprietary algorithm using artificial intelligence to power my trades.

And while this system has helped me beat the market almost 38 times over, I still felt I could do better.

When I release new trade alerts, I’ve already run them through algorithms and analysis to ensure that I am passing off the best possible trade to my subscribers.

And while this AI-powered trading system is fast, there still is a period of time when I’m watching and analyzing the trade’s potential… but I haven’t bought it yet. 

I call this period of time, the 9% Gap.

As I work through the deep analysis on trading opportunities, I haven’t made any recommendations yet. Meanwhile, the opportunity is still there for the taking.

It might be hours or even days before I release this trade recommendation to the Live Trading Room.

Recently, I’ve tested out a new approach to my trades - one that gets me trading in these stocks before I release the alerts.

The result? A 9 point increase in gains per trade.

That might not sound like much, but it actually is more than you think...

I’m doing this with my own money right now… 

and I want you to join me CLICK HERE

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SECTOR SPOTLIGHT 

There are rumblings that Congress is getting closer to working out an infrastructure deal that will finally get passed. White House pressure on the Democrat-controlled House is pretty intense, especially after Ida destroyed billions of dollars of property in the northeast corridor. The timing looks good for a green light vote this month. 

Assuming this comes to pass, the minor pullback in the Industrial Select Sector SPDR (XLI) presents itself as a buying opportunity for those traders that want to avoid stock picking and just buy the sector. The top ten holdings within XLI make up about 41% of total assets represented by a strong lineup of blue-chip stocks with great potential.

From a technical standpoint, shares of XLI peaked in early May and have been consolidating a big run-up for the past four months. The chart shows a very constructive base by which the shares should clear the previous high and push well higher. 

When we apply our AI-driven Seasonal Chart to XLI, we see a short period of further consolidation over the balance of September followed by a breakout higher move in subsequent weeks ahead. For traders wanting to receive our buy signal and related trades in XLI, make the decision today to become a new member of Dynamic Power Trader and don’t miss out on when we trade XLI.

TRADE OF THE WEEK

Caterpillar Inc. (CAT) is arguably the purest infrastructure play in the entire industrial sector. Not only will the company be on the receiving end of massive spending on new and existing roads, bridges, tunnels, waterways, and other projects, but they are also situated to profit heavily from the global economic recovery per their large overseas presence. 

2021 revenues for CAT are forecast at $50.1 billion, up 19% over 2020, and are estimated to grow by 13% in 2022 to $56.7 billion, without an infrastructure deal. 2021 earnings look to come in at $10.20 per share and rise by 22% to $12.50 per share in 2022. The company is clearly in a powerful sales and earnings cycle that sets up the stock for a major run higher over the next year. 

When looking at the three-year chart, one can see the bullish breakout from July 2020 that took the stock up to an all-time high of $246.69 before retreating back down to its 200-day MA where it trades today at $207. This is a very healthy pullback and one that I find very opportune for us to pounce on – like a CAT on tuna! 

Aside from the bullish chart pattern, our AI platform is flashing a double buy signal on the stock The Forecast Toolbox gives CAT an “A” Model Grade rating with a 10-day Predicted Resistance price target of $212.37.

Our Seasonal Chart is signaling “Higher” prices for CAT over the next 10 and 20-day periods – making for a quintessential trading strategy. Such a combination of powerful fundamentals, technical and confirmation from our AI tools puts CAT in a special place for what we consider an excellent risk/reward candidate.

This is what our precision AI platform does for our members. It identifies, clarifies, and verifies high-quality trades like a clear and newfound uptrend in stocks like Caterpillar. By being a member of any one of our services, it’s these kinds of opportunities that our proprietary algorithms provide our members to look forward to every day, where they can put their risk capital to work on both long and short positions. 

Through our services, we tie our Tradespoon Live Trading Room to manage the parameters of every trade. And we update our closed positions daily. The two platforms work 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 trades 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 a standpoint of a Winning Trades Percentage, Average Return Per Trade, and Net Gain.

Considering the choppy 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 don’t trade without market-proven AI tools.

The consistent performance of our services is just incredible. Our historical stellar performance is made possible by being right on 86.38% of all trades that we made with an average profit of 35.40% 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 86% of all trades are profitable to come alongside the Yellow Tunnel community and make one of our services your go-to AI trading platform for no-excuses performance.

Our AI platform crunches and analyzes thousands of proprietary performance indicators to help identify the next big trades to 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, proprietary platform, can help you make 2021 the best year on record for your trading portfolio.