Power Trading and Markets – May 14, 2021
Vlad's Pick Of The Month: Healthy Profits
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.
It’s been a volatile week for the stock market and traders have had to cope with some headline risk that triggered serious price gyrations in all market sectors. The CPI and PPI inflation data came in way over the forecast, sending stocks plummeting on Tuesday with the rest of the week in an oversold bounce recovery of sorts.
Commodity prices finally got hit with some profit-taking as well, taking some of the angst out of this area of concern. Oil, lumber, and copper all sold down hard the past couple of sessions, providing some temporary relief of what has been a torrid uptrend for the CRB index year-to-date.
Bonds and the dollar have held steady in light of the strong inflation news as the debate of sustained versus transitory inflationary pressures brews hot. It makes for a very fluid environment.
CURRENT TRADING LANDSCAPE
The $SPY retraced back to the key support level at $410. VIX dropped to the $20 level. The reflationary stocks led the rebound late this week. The technology stocks along with high beta stocks gave up most of their gains toward the end of the session.
The QQQ trading below the 50-day moving average and the $SPY rebounded from the 50-day moving average. The small-cap stocks, the biotech, and the semiconductor stocks broke through main support levels and trading below the 50-day moving average. The $DXY is reaching oversold levels and rebounded. The $TLT sold off and retested recent lows. Short term the $SPY key support level is at $377-403.
I would consider rebalancing the portfolio at this point to be more market neutral. I expect the first wave of the sell-off to reach the end either this week or next. The VIX is approaching has retraced 50% of its spike to the $30 level and the Biotech and high Beta stocks did not make new lows after Tuesday’s blowoff (ARKK, XBI). The second wave of the sell-off will start after a sharp rebound (the $SPY reaching $412-$418) and I would use any market strength to raise cash.
Based on our models, the $SPY can pull back 10-15% from the all-time highs 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 $404 level using SPY and the "SELL" signal is at $412 for short-term traders. Based on our models, the market (SPY) will trade in the range between $388 and $425 for the next 2 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 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.