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.
To start the week, stock markets plummeted during the first few days of trading after Federal Reserve officials made hawkish declarations. This trend continued through the midweek with stocks plummeting on Wednesday and Thursday, while Friday produced a slight rebound. Upcoming earnings remain of keen interest, and investors will be closely monitoring next week's Producer Price Index data for further developments.
With these latest developments, it became evident the bear market was still in control and although we had received some promising data and signals from Fed officials previously, it now appears additional Fed action could be in store. As the week progressed, I found myself checking in with my portfolio a bit more frequently than I normally do. Cross-referencing my predictive software with my current trades, looking through buy and sell signals, and reviewing YellowTunnel tools for optimal trading and insight. And ultimately, while reviewing these tools, I was reminded of one of the key tenets of YellowTunnel trading psychology I was neglecting. So let us break it down before we dive into this week's market happenings and latest trades.
YellowTunnel Tools of the Trade: Self-Awareness
Whether it was the whirlwind of news, whether it was the return from the low-volume "dog days' ' of winter holiday trading, I was letting my mental state react to the happenings rather than interpret and devise the best method for myself and my portfolio. I realized I was working against myself and the fundamental trading habits I had developed. Quickly, I snapped back into action and reviewed YellowTunnel's self-awareness principles.
For example, as described above, over-checking one's portfolio serves no good. Sure, it is important to know what your portfolio consists of at all times and be vigilant with stop-loss and target prices. Nevertheless, frequently observing one's account due to the false sense of it potentially increasing or decreasing in value can prove hazardous when trading. This can lead to decisions being based on the account value rather than on the original trading plan.
The first step is to be aware of this decision-making process. Doing mindful exercises every morning and meditating can help, as well as maintaining a blog and asking yourself "why" am I trading multiple times? Ideally, your trading plan should factor in several scenarios including best case, worst case, and in between; therefore, when markets move, you are aware of which route you are going to take rather than sitting and waiting to respond to the action as it happens. Tracking your reactions to the market and how your trading plan holds up is also ideal. From there you can see where your trading plan should improve, where it worked, and if there are beneficial trends to follow.
For example, once you see the pattern, you should consider changing your trading plan and include a list of "check marks" before entering a trade. One of these checkmarks can be "do I enter or exit a position based on my account value and not a specific trading setup?"
These are the topics we discuss during our weekly webinars, and just last week we held a Trading Discipline workshop which featured most of these concepts as well as the latest market breakdowns.
That is why I highly suggest joining the YellowTunnel trading community, where you can 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 of Friday, the 5-day chart shows the $SPY was trading 0.05% lower, near $393 - but snapped a multi-day streak in the red on Friday with marginal gains during the week's final trading session. Major U.S. indices traded lower this week as the Fed's hawkish comments spooked investors. The volatility index had an up-and-down week, trading near the $19 level on Friday.
At the moment, I am observing the limit of resistance in SPY which currently exists at $402 and then $416. The support for SPY is located at $391 and then again at $385. Predictions suggest that within the upcoming 2-8 weeks we shall experience a revival of the bear market cycle. I would remain BEARISH ON THE MARKET at this time and encourage subscribers to hedge their positions wisely.
The market has been profoundly influenced by reports on $DFS, $NFLX, and $PG, as well as PPI and Retail data this week. But the biggest factor pushing markets lower this week appears to be the hawkish sentiment portrayed by the Fed in their latest comments.
During the week, several Federal Reserve members emphasized that the current inflation rate is still too elevated and must be addressed through a higher interest rate. Following an impressive start to the year, stocks have reversed their gains as fears grow that the Federal Reserve's attempts to curb inflation could result in further hikes of interest rates amidst a weakening economy - potentially driving us into recession.
To further complicate the market situation, this week's economic data was not supportive. Wednesday saw a surprising decrease in the Producer-Price Index for December, and retail sales drastically fell by 1.1%. This paints an unfavorable picture of our current financial landscape and could be indicative of longer-term downward growth ahead. Employment data, though limited, did not improve market standing either.
This Thursday, the country experienced a multi-month low in unemployment filings—an impressive feat that was far beyond what economists had predicted. This proves that our job market is still going strong and making it difficult for investors who were hoping for less firm Federal Reserve policies. Despite inflation being both consistent and high, the Fed has been striving to identify weakened employment; however, this news implies such an outcome is becoming very unlikely.
Also occurring Thursday, Treasury Secretary Janet Yellen declared that "extraordinary measures" would need to be taken when the United States reaches its debt limit in order to avoid defaulting on our nation's committed responsibilities. Last week, she warned U.S. legislators about her department's upcoming response to this impending crisis, which appears to have come to a head this week.
Still, there were some reports that provided a glimmer of hope. For instance, Netflix turned out to be an unexpected winner in this week's market despite the harsh economic landscape. As soon as their fourth-quarter earnings report was made public after hours, it became evident that they had beaten subscriber estimates; consequently, shares went soaring!
With several market outliers due to their earnings, such as AA, DFS, and SCHW, I am starting to see a pattern in the current bear market we are in. It appears that the market pullback has resumed and we can expect more volatility during the first half of this year.
CPI data and earnings continue to be the major catalysts, along with the start of the earnings season. Weak sales data, weak PPI data, weak manufacturing data, and weak job opening data all point to a downward slope in inflation, which at the same time sparks concerns about a looming recession. After Fed committee members were pointing to maintaining their hawkish posture on rates, the next time we will hear from the Fed will be on February 1st, at the conclusion of the upcoming Federal Open Committee meeting.
Everyone appears to concur that inflation is slowing somewhat, yet the question remains: will we be experiencing a recession or not? Will it be easy for us to traverse this economic period, or shall it prove challenging? These inquiries must be monitored vigilantly in the coming weeks.
After the previous publication of unexpectedly positive CPI/PPI data from Europe and America, interest rates were declining while the U.S. dollar remained stable. The 10-year bond yield is currently below 3.5%, which was a previous support level, as sales figures failed to meet expectations.
With this in mind, as earnings season continues and markets continue to remain sluggish, I am ready to take advantage of this opportunity by investing in one specific symbol and sector—more on that in a bit.
To be fair, I feel I must extend to you, the same money-saving deal offered during my recent live webinar event:
Watch Thursday’s webinar and get the names of the 2 hottest stocks about to show stellar moves.
Click here to watch, then come back for this special webinar attendee offer below...
Earnings Power Trader system eliminates that guesswork.
I expect upcoming events to be challenging for most traders. But you’re my followers, and I want you to come out ahead during this earnings season inflation/recession frenzy.
The next 30 days look like the “filet mignon” of the entire trading year.
Many traders expect an earnings recession this quarter. Most companies are expected to reflect earnings eaten away from inflation. But there will be many surprises. Don’t miss this opportunity to cash in and feast on stocks the market has overlooked.
Even with the uncertain nature of the market, there is one sector that excels during times like these. The start of 2023 was optimistic, but it has since reverted back to its bearish tendencies. With a myriad of issues rising up in front of us, this specific industry could be primed for potential gains over the following weeks.
The Health Care Select Sector SPDR Fund (XLV) is my go-to, and one of the most well-known, ETFs for U.S.-based healthcare. This fund, whose portfolio ranges from prescription drugs to medical instruments, is the longest-standing in its field and heavily trades in mega-cap stocks.
As the current market and trading climate are carefully evaluated, it's clear that the health sector has a history of outperforming during similar conditions. With various elements driving this industry forward, many anticipate great strides being made in these next few weeks.
After intently analyzing the 10-day forecast for XLV, we have identified a favorable and consistent pattern that suggests impressive prospects in our prediction. Moreover, the model has provided it with a “B” rating which puts it among 25% of our most precise symbols at its best!
With over $40 billion of capital managed, XLV offers a unique opportunity to invest in the healthcare sector. Generally speaking, health stocks perform better than most during bear markets – and with our current market climate pointing toward a continued downturn, now may be the perfect moment to take advantage.
Additionally, our A.I. platform is strongly signaling a 'buy' through the Seasonal Charts tool for long-term data and forecasting clear potential success given its chart pattern. After studying four time frames - 20 days, 30 days, 40 days, and 50 days – Seasonal Chart readings paint an especially optimistic picture in three of them! See XLV seasonal chart below:
If you’re looking to invest in anything health-related such as pharmaceuticals or medical equipment, this fund is an ideal choice due to its long history of success and large trading volume - and within this sector, there is one symbol that I am going to be trading in the coming days!
TRADE OF THE WEEK - Vlad's 2023 Healthiest Trade
Those looking to profit from the healthcare sector should take advantage of this unique opportunity to invest in UnitedHealth Group Inc. (UNH), a reliable and trusted brand name that is currently being sold at extremely low prices. UNH provides medical insurance across the nation, making it an integral part of the Dow Jones Index.