Why gold should be part of my portfolio?
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.
A deal to fund infrastructure has been tentatively reached on Capitol Hill and the market is adding to its recent gains as a result. The package of spending is music to a market that sees more liquidity being pumped into the economy at the hands of Congress and the Fed, a powerful combination of steady sugar for stocks.
What’s interesting is that sector participation is more evenly balanced where 9 of the 11 sectors are trading higher with the exception of consumer staples and utilities. It’s a notable change from the back-and-forth debate between growth versus value as some of the fear of runaway inflation has diminished.
CURRENT TRADING LANDSCAPE
The $SPY continues to make incremental highs. All sectors rebounded from oversold levels set last Friday. The technology stocks closed at a new all-time high. The reflationary stocks (energy, banks, materials, commodities, industrials) rebounded from the oversold levels.
The $DXY has broken above $90.60 resistance and has confirmed its break-out—the next level of resistance at $93. The $TLT mirrored the price action in the U.S. Dollar and the next level of overhead resistance is at $148.
The $SPY short-term support level is at $414, followed by $404. The SPY overhead resistance is at $430. Even if the $SPY is able to trade above the $425 level, the market can only make incremental highs.
I would consider rebalancing the portfolio at this point to be more market-neutral. The second wave of the sell 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 10-15% from the all-time highs in the next 2-4 weeks. If you are trading options consider selling premium with September and October expiration dates.
"BUY" signal based on the Aggressive Power Trader Portfolio for tomorrow is at $420 level using SPY and the "SELL" signal is at $426 for short-term traders.
Based on our models, the market (SPY) will trade in the range between $385 and $425 for the next 2-4 weeks.
NEW WEEKLY DYNAMIC POWER TRADER SERVICE
We recently launched our new Dynamic 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.
Our Weekly Power Trader service continues to power up great trading profits. Each week on Sunday, 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.
Also, note that the Weekly Power Trader signals are meant to last for 5-10 days as long as the vector confirms the same direction as the original pick. For stocks, we use a target gain of 2% and stop as 2% of the stock price.
Signals have averaged over 86% accuracy in my live trading since inception. Sometimes we hold positions for 2-5 days by using options (selling OTM BULLISH PUT 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.
The recent rally in the dollar and general risk-off tone of the trading landscape has weighed fairly heavily on the gold and precious metals sector. However, the Fed’s policy statement was pretty clear that QE would continue to be used for the balance of 2021 and well into 2022 before the Fed would consider tapering.
At the same time, the market is starting to buy into the notion that the Fed will begin to lift short-term rates sometime next year, depending on the strength of the economy for the balance of 2021 following what will be a very strong second quarter. In any event, there is a growing perception that the inflation spike of the past few months will dampen, but still be prevalent and fiscal policy will continue to be adjusted to be tighter.
Less than three weeks ago, gold traded over $1,900 as the fundamentals for the metal “have never been better,” according to OANDA senior market analyst Edward Moya. "The Fed's hawkish pivot is a major buzzkill for gold bulls that could see some momentum selling over the short-term," Moya stated, "short-term Treasury yields will continue to rise and that should provide some underlying support for the dollar, which will keep commodities vulnerable."
At the same time, with Bitcoin suffering a material breakdown, there is renewed interest in gold at these levels as an inflation hedge. Divided opinions are what make for markets, but from our perspective, we have the advantage of our proprietary AI platform to guide our trading decisions in depressed assets, and right now, on a short-term basis, gold is a depressed asset.
Along this line of thinking, the recent sell-off in gold mining companies makes for a strong candidate for a bullish reversal off this current level. Shares of the VanEck Vectors Gold Miners ETF (GDX) have come well off their recent high of $40 and currently trade at $34.50.
The top 10 holdings within GDX make up better than 63% of total assets, making this ETF fairly concentrated on the leading names in the sector.
Our AI-driven Seasonal Chart shows GDX is coming right into the buy zone, where we could receive a green light any day. Going out over the next 30-50-day period, our AI model is forecasting bullish price action.
At Weekly Power Trader, we apply our custom proprietary AI algorithms to all market trends and scenarios where even when it appears the conventional thinking is in the right position, it can turn adversely against the herd mentality in a hurry, just as has happened recently.
TRADE OF THE WEEK
Assuming our AI data is accurate and the gold sector starts a new upside move in the days ahead, traders that desire single stock exposure should consider our favorite name Newmont Corp. (NEM), which is also the top holding in GDX. Newmont is the institutional go-to blue-chip gold miner and the most trusted name in the sector.
Newmont sports, a $50 billion market cap, is super liquid for both stock and options trading. The stock has endured a healthy pullback from $75 to $63 where it is testing its 200-day m.a. support line. With gold prices starting to catch a bid at the $1,775/oz level, it makes for a good trading proposition to consider NEM here and now.
I say here and now because our AI tools are once again flashing a “Higher” probability reading for the next 20 and 30-day periods, which is right in the zone for our purposes.
This is where our AI models do the heavy lifting for our trading community. Our proprietary AI tools crunch the data needed to make that distinction, creating a strong read as to whether to put this trade on or not.
There is excellent profit potential for this trade in that if the fresh upside reversal price action in gold is for real, shares of NEM could be a great trade as our AI indicators are now flashing us a buy signal.
This is what our precision AI platform does for our members. It identifies, clarifies, and verifies high-quality trades like NEM. By being a member of Weekly Power Trader, it’s these kinds of opportunities that our tailor algorithms provide our members to look forward to every day they put their risk capital to work on both long and short positions.
Our Weekly Power Trader advisory service takes positions in only blue-chip stocks and ETFs that are green-lighted by my proprietary AI tools, and when confirmed, are added to the portfolio with my investment capital invested as well.
With 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.
Our AI platform delivered nothing but profits during May for Weekly Power Trader members. Considering the mid-month market pull-back this short-term performance is what makes our hard work so gratifying. We’re ringing the register all the time and that is why serious traders don’t trade without market-proven AI tools.
The consistent performance of our Weekly Power Trader service is just incredible. Our 2021 YTD stellar performance is made possible by being right on 86.37% of all trades with an average profit of 36.22% per trade. 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 over 86% of all trades are profitable should take action and 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 all the data, generating a constant stream of trades with the highest probability of generating stock and option selections with a high win rate. It can be suited for the beginning, retail, and professional traders anywhere in the marketplace today.
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, always thinking platform and make 2021 the best year on record for your trading portfolio.