Vlad’s #1 Trade: AAPL of My Eye
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.
Another good week for stocks and the major averages, all hitting new all-time highs. FAANG, MSFT, ADBE, TXN, DELL and NVDA all led big-cap tech in an impressive resumption of their market leadership role. Homebuilders and remodeling retailers HD and LOW also rallied strongly while cyclical and value stocks consolidated.
We’re about to enter the heart of earnings season, which is fraught with uncertainty as to how stocks trade in reaction to their results. It can be a real mixed bag, and I tend to favor trading around earnings reports because of the inherent headline risk.
CURRENT TRADING LANDSCAPE
The $SPY continues to trade higher. As long as the $SPY is trading above $397 level the path of least resistance is to the upside. Technology stocks rallied and value stocks lagged behind. Our model projects the $SPY reaching the $415-$420 level by the end of April. The $DXY is reaching oversold levels and started its bottoming process. The $TLT rallied sharply, indicating that the most recent rally is coming to an end.
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 $414 level using SPY and "SELL" signal is at $417 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.
With the tech sector resuming its torch-bearing role for the broader market, one need not look further than the Invesco QQQ Trust Series ETF (QQQ) as the de facto ETF for trading the Nasdaq 100. Trading QQQ provides for one of the most liquid stocks and options chain with which to actively trade with.
Top holding is the biggest and best tech companies that make up just over 50% of total assets of QQQ, where active management keeps the top performing names always positioned with the largest fund weightings.
The 6-month chart shows QQQ has made a powerful move of late, again led by the likes of MSFT, AMZN, AAPL, FB, GOOGL and PYPL. Traders and investors are more comfortable owning these mega-cap names as the market levitates. There is an element of perceived safety riding the biggest and the best stocks higher.
At the same time QQQ is now extended on a short-term basis and probably due for some profit-taking as earnings are released.
When we apply our AI tools to QQQ, we still get a bullish reading, indicating that any pullback in the shares will be shallow and brief. Our Seasonal Chart remains broadly bullish on QQQ that shows the stock peaking in the next couple of weeks, correcting thereafter for a week or two and then resuming its upside.