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.
Few things can pour cold water on a party and send everyone home early than a headline that capital gains taxes might double on those that have the greatest stock market exposure. That’s exactly what happened this past Thursday when the Biden administration released their new tax plan to take the current 20% long-term capital gains tax up to 39.6% on those individuals making over $1 million.
This is just the opening salvo. President Biden is set to outline the increase, along with other changes, as he unveils his so-called American Family Plan next week. Its details remain a work in progress and will likely emerge as a plan reflecting something not quite as hard-hitting after special interest groups weigh in.
Life with children is full of challenges and it’s never dull. We spent years trying to get our oldest daughter to eat healthier and eliminate as much junk as possible from her diet. We signed her up for sports, ran outside with her and joined orange theory as a family, all in order to fight my terrible genes of slow metabolism and weight gain.
As we are celebrating her college commitment tonight, my wife doesn’t fail to remind her that healthy habits are even more important on college campuses. Poor child has been hearing this since she was 5. And in the same sentence, she turns around to my fifteen-year-old, watching her scatter her food around her plate, and tells her to eat an ice cream bar, immediately, because she has food aversions and has probably consumed less than one thousand calories today. Never a dull moment.
CURRENT TRADING LANDSCAPE
Speaking of never a dull moment. The $SPY has started its top building process and has set the top at $418. The $DXY is reaching oversold levels and started the bottoming process. The $TLT resumed its ascent after a strong rally last week.
I would consider raising cash at this point as the best part of the recent rally is behind us. Based on our models, the $SPY can pull back 10-15% in the next 2-6 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 $408 level using SPY and "SELL" signal is at $415 for short-term traders.
Based on our models, the market (SPY) will trade in the range between $388 and $420 for the next 6 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 order. 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 75% accuracy in my live trading since inception. Sometimes we hold position 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.
After languishing for months, gold prices and gold mining stocks are reversing higher, boosted by a few key catalysts that can feed and sustain this uptrend. Recent inflation data has been hot, the dollar has been in decline and Bitcoin (digital gold) has lost some of its luster following some regulatory restrictions in Turkey and other foreign nations.
Gold still remains the oldest storehouse of wealth in history and the unquenchable amounts of central bank QE and government stimulus have capital looking for a hedge against record global deficit spending. Historically, gold mining stocks outperform physical gold and thus make for a better trading vehicle, and is why I want to highlight the VanEck Vector Gold Miners ETF (GDX).
The top ten holdings of GDX make up about 58% of total assets and trade actively, about 20 million shares per day.
The one-year chart shows a quintessential double-bottom, higher-low formation completed during the month of March that set up the recent move higher and up through the channel downtrend that had been in place going back to August 2020.