Hello and welcome to the YellowTunnel community, a family of trading services dedicated to all classes of traders seeking to elevate their trading skills, market awareness, and trading profits.
For the third day in a row, the stock market has experienced a dip as losses continue to mount. The ongoing turbulence has caught the attention of finance professionals around the world, who are closely watching the Federal Reserve and key indicators for signs of stability. The outlook for interest rates remains unclear, contributing to the overall instability in the stock market. With the financial community on edge, recent tensions in Russia have raised questions about the potential impact on global energy supplies and the ripple effects it could have on the global economy.
With all the uncertainty in the market, I think this marks a good time to highlight one of the things I am most proud of at YellowTunnel: our algorithmic trading strategy.
The results of using algorithmic trading are truly impressive. Since January 1, 2020, the total return on trades made using the algorithms has been staggering, outpacing even the S&P 500 by a wide margin. This disparity is not lost on the financial community; many stock experts express fear that the general public will gain access to powerful tools - such as those we offer at YellowTunnel. So, what is an algorithmic trading strategy? Let's break it down...
Q: How does Algorithmic Trading work?
A: Algorithmic trading, also known as "algo trading," is a method of simplifying trades using automated and pre-programmed trading instructions that highlight and narrow potential trades. The algorithms take into account various market conditions and data to make decisions and which we then use to execute trades faster and more accurately.
Q: What is Algo trading?
A: Algo trading refers to the use of algorithms to identify trades in financial markets; these algorithms utilize mathematical models and statistical analysis to analyze market data and make trading decisions. Algo trading simplifies the process of selecting stocks with the aid of A.I.
Pros and Cons of Algorithmic Trading
- Speed: Algo trading enables trades to be executed much faster than traditional manual methods.
- Accuracy: Algorithmic trading eliminates the potential for human error and emotional bias in trading decisions.
- Cost-effectiveness: Algo trading can reduce trading costs as it eliminates the need for human traders.
- Lack of Flexibility: Algorithmic trading systems are based on predefined rules and may not be able to adapt to unexpected market conditions. If black swan events or unprecedented volatility occur, systems typically take some time to adjust - which is why I recommend signing up for our newsletters and weekly videos where I review the algo results.
- Dependence on Technology: Algorithmic trading relies on technology and can be vulnerable to technical failures and cyber threats. The system is self-learning, which is meant to correct these errors as they come, but no system is perfect.
- Lack of Understanding: The use of algorithms in trading may be difficult to understand for those who are not familiar with the technology. However, we have our weekly roundtables and webinars where I can walk you through how I use my system to bank winners every week.
Q: What are some of the top Algorithmic Trading Strategies?
- High-Frequency Trading (HFT): A strategy that uses algorithms to execute a large number of trades at high speeds.
- Statistical Arbitrage: A strategy that uses statistical analysis to identify profitable trading opportunities.
- Trend Following: A strategy that identifies trends in financial markets and executes trades based on those trends.
- Mean Reversion: A strategy that assumes that prices will eventually revert to their average and executes trades based on that assumption.
Impressive, right? And best of all: gaining access to this technology is easier than many people think. The algorithms have been developed over the course of 18 years using my experience and deep understanding of how to dissect the market and identify the best possible trade opportunities. This expertise has even led to the development of an elite stock and options platform that was sold to Charles Schwab for a staggering $1 billion.
That is one of the many reasons I highly suggest joining the YellowTunnel trading community, where you can review our non-opinionated AI trading program and openly discuss and explore different trading strategies with other participants. We offer a 30-day risk-free trial that gives you access to the YellowTunnel platform and lets you decide for yourself. If, after 30 days, you believe YellowTunnel's predictive software and trade intelligence platform is not for you, we will refund your membership! That is how confident we are in our signal accuracy and trading tools.
For more information on the YellowTunnel tools and our trading community, I suggest reviewing our latest Strategy Roundtable, which we hold weekly on YellowTunnel. I also recommend checking out our latest Roundtable webinar in its entirety below:
With the unpredictable nature of the market and the uncertainty ahead of us, I can’t emphasize enough how vital it is for our readers and members of the Yellow Tunnel community to keep referring to our Live Trading Room so as to maintain a close tie of how our I and my AI platform is navigating us in and out of select trades. It’s FREE and I highly encourage everyone to sign up for the Live Trading Room and keep checking in throughout the trading day.
Every Monday and Wednesday, I highlight our best strategies and potential trading setups via the DISCORD server. It’s the future of bringing together a trading community’s total services, educational products, live chat venues, support, news, how-to tutorials, webinars, live-trading demonstrations, and tons of market analysis. It is incredibly interactive and full of crucial and timely information. Just go to:
I also want to emphasize to traders how vital a stop-loss discipline is to winning and being successful in an unforgiving market. We employ specific stop-loss instructions with every trade. The buy and sell programs controlled by high-frequency related algorithms can create great profits or cause sudden losses, so it is imperative to maintain an element of controlling risk with each trade.
NEW EARNINGS POWER TRADER SERVICE
I recently launched our new Earnings Power Trader service, which I am 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.
This new service is special because 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. Click here to learn more.
Signals have historically averaged over 85% accuracy in my live trading since inception. Sometimes I 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 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 Earnings 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 entered 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 the stock price. I target 75% accuracy using these signals.
A 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 an OTM Put (strike less than 100) with an option BID price close to $0.5.
CURRENT TRADING LANDSCAPE
As the week draws to a close, uncertainty still lingers in the financial market due to ongoing speculation of potential central bank rate policy and wider macroeconomic trends. As such, stock prices remain volatile with many experiencing drastic losses while others reflect more moderate declines. The technology sector was one of the most adversely affected by this week's events as Alphabet experienced an alarming 7% drop in value.
Meanwhile, Microsoft, which is preparing to launch a new search product powered by ChatGPT, experienced a slight dip this week. In the oil market, prices jumped on news of Russia's plan to cut output in March, while the U.K. narrowly avoided a recession; however, the economy remains weak. The dollar also weakened as investors remain on edge.
As of Friday, the SPY is on track to finish the week in the red. The VIX trades near $20 after an up-and-down week, which saw the volatility index significantly tick higher as the week ended.
I am watching the overhead resistance levels in the SPY, which are presently at $420 and then $430. The SPY support is at $410 and then $402. Vlad expects the market to trade sideways for the next two to eight weeks. I would be market neutral on the market at this time and encourage readers to hedge their positions. See the $SPY Seasonal Chart below:
With this in mind, there is one specific sector and symbol I will pay close attention to next week. But before we get into that, let's make sure we have reviewed the current market landscape completely.
Federal Reserve Chairman Jerome Powell's speech on Tuesday sparked new discussions in the financial world. In his address, Powell emphasized the need for sustained interest rate hikes and hinted that inflation may decline over the course of the year, leading many to believe that the Fed may be reaching the end of its interest rate hike cycle. Despite Powell's sentiments, the dollar remains robust and interest rates continue to climb, potentially signaling that the current rally may be losing steam.
This week, major companies including Activision Blizzard, BP, Disney, PayPal, AbbVie, Lyft, PepsiCo, and Philip Morris reported their earnings, attracting the attention of investors. In the coming months, the market is expected to remain within a range of 430 at the top and 380 at the bottom, with a neutral outlook. Europe's financial markets are also recovering from last year's losses and are close to regaining their previous position.
A key transformation occurred in the bond market following a 10-year Treasury yield ascent of almost 3.7%, an unprecedented rate since early January. The uptick is attributed to the two-year yield surge, which serves as a benchmark for short-term federal funds rates expectations and climbed close to 4.5% after experiencing a dip down to 4.1% at the beginning of February.
The spike in U.S. yields came on the heels of Kazuo Ueda's ascension to Governor of the Bank of Japan, since his 'hawkish' outlook pointed toward higher interest rates and tighter monetary policy. This caused global investors to turn away from investing in U.S. bonds which triggered a selloff resulting in an uptick in yield values.
In line with the Federal Reserve's strategic plans, inflation is showing signs of weakening while simultaneously attention has been directed towards raising interest rates to manage economic demand and keep prices in check.
Next Tuesday's release of the Consumer Price Index (CPI) data will be closely monitored, as it may drive market activity. Meanwhile, the recent earthquake in Turkey has raised concerns about its impact on the global economy, while record low temperatures in the U.S. East Coast are putting extra pressure on local communities. The recent decline in Bitcoin's value has added to the overall market volatility.
With a clear understanding of the current market conditions, I am eager to present my sector and trade of the week.
Inflation is a moving target —and it could crush traders. But there are always tons of winning trades…and I will find them for you.
My trading algorithms helped me identify winning trade after winning trade.
Since January 1, 2020 (with markets going up, down, and sideways), the total return on the trades is an astounding 620*% with an 84.82% win rate.
Stock experts are terrified that you’ll get your hands on it — but you’ll get it today.
And it’s easier than you think! “My powerful AI program correctly adjusts to market fluctuations with uncanny accuracy.”
(A portion of Yellow Tunnel sales will go to directly help the Ukrainian people)
Using our algorithmic trading strategy and predictive software, there is one sector I will be honing in on over the next week. Creating algo trading for times like these is exactly where the power of A.I. helps in a big way. Market uncertainty remains at an all-time high with Fed decisions, interest rates, and recession fears swelling. Still, my day trading has not taken any significant dips, and for that, I thank my prudent investment strategies derived from the YellowTunnel system!
The Consumer Discretionary Select Sector SPDR Fund (XLY) follows the S&P 500 Index's performance of its Consumer Discretionary sector. This ETF houses companies that make products and services not considered to be essential needs - like apparel, cars, media outlets, and retail stores.
As for why now may be a good time to invest in XLY, the Consumer Discretionary sector has historically performed well during periods of economic expansion, while seeing little impact from uncertainty regarding Federal decisions or interest rates. It is believed that the current global economic recovery from the pandemic is likely to continue, providing tailwinds for the sector. Additionally, the sector has benefited from the shift to online shopping, as well as an increase in consumer spending on discretionary items as people spend more time at home.
XLY sold off this week and is currently trading closer to its 52-week low ($126) than its 52-week high ($192), providing plenty of room for the upside as the year progresses. Looking at the XLY's Seasonal Chart, our tool primed for longer-term predictions, XLY is flashing one key time frame in which the ETF could boom: 30 days. See XLY Seasonal Chart:
As the symbol traded lower throughout the week, it is apparent that our algo model found little confidence in the symbol this week. However, as we have stated above, things can turn on a dime and the consumer discretionary sector is built just for that.
If the consumer sector is set to boom, then it is wise for us to also attach ourselves to a symbol within the sector that could profit as early as next week.
TRADE OF THE WEEK - Fast SUPERCHARGING Tesla Trade
Tesla, Inc. (TSLA) is an American multinational corporation that specializes in electric vehicles, energy storage, and solar panel manufacturing based originally in California before relocation to Austin, Texas. TSLA is best known for its electric vehicles, which are designed to be more energy-efficient and sustainable when compared to traditional gas-powered vehicles. The company has a strong brand and a growing presence in the automotive industry, being at the forefront of the shift toward electric vehicles.