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.
August closed out with a bang, September sucked all the rally chasers in at the top and this past week saw the Robin Hood crowd get buzz sawed as the high fliers like Tesla, Zoom, Nvidia, Square and DocuSign filled some major gaps underneath. It has been a full two-day rinsing for the Nasdaq, which was by every measure very overbought.
There is constructive rotation occurring where industrials and the epicenter stocks are seeing strong fund flows. Money isn’t leaving the market - it’s just moving into more economically sensitive sectors – a very healthy and technically constructive development for the primary uptrend to be sustained.
Now that we seen the market incur a sharp haircut, stocks like Apple, Home Depot, MasterCard and Nvidia are once again popping up on our AI platform as attractive trades from the long side. We’ll be working these and other leading blue-chip stocks next week as the market stabilizes from the much-needed pull back.
NEW WEEKLY POWER TRADER SERVICE
We recently launched our new Weekly Power Trader service that we at Yellow Tunnel are very excited about. 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. Green color should be interpreted as a bullish signal and Red color as a bearish signal.
What is highly notable is the quality of the trades our AI platform puts out week after week and now that economic data is showing marked improvement with housing, jobs and consumer spending numbers all firming up, we are using the current market weakness to line up our favorite names to trade for the week ahead.
CURRENT TRADING LANDSCAPE
The market sold off precipitously on Thursday; lead by the technology sector (down 5%)
TLT and DXY continue to trade in the range and do not show any signs of market reversal. Market dynamics support the reflationary trade where the value stocks will outperform the growth stocks. August’s unemployment numbers were just released and the unemployment rate dropped to 8.4%.
The value stocks continue to outperform technology stocks on Friday and should provide SPY with short term support at $335-$340.
The SPY new top is now set at $359 and potentially can be retested again only at the end of September or early October. SPY longer-term support is at $340. I would be a buyer using any short-term corrections and use dollar-cost average to accumulate positions.
"BUY" signal based on the Aggressive Power Trader Portfolio for tomorrow is at $340 level using SPY and "SELL" signal is at $350 for short term traders.
Based on our models, the market (SPY) will trade in the range between $340 and $360 or the next 4 weeks.
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 which can be accessed from whatever device your 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 the 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 predicted LOW (BUY) price or yesterday's close price. My stop loss is 1% and my target gain is 1% of a 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 stock is trading at $100, i would sell OTM put (strike less than 100) with option BID price close to $0.5.
After the second quarter earnings season wound down, it was glaringly clear that eCommerce shopping had taken a firm hold on the consumer. Digital sales were up triple-digits for many retailers with tens of millions of Americans changing their shopping habits due to the pandemic.
I believe this is a secular change and we’ll continue to see a strong shift to mobile commerce now that most consumers have gotten highly familiar with their favorite online stores. This is one industry that has seen explosive growth from the challenges presented to everyone from COVID-19.
Traders that want to play the eCommerce retail space should consider the ProShares Online Retail ETF (ONLN) as a way to cast a net over the hottest names in the sector.
Shares of ONLN traded as high as $70 and tested $59 on the extreme two-day blow off before settling back above its 50-day moving average that should provide key support right around $61.50. With stocks like Amazon.com and Alibaba accounting for about 35% of total assets, this ETF offers a nice one-two punch for those seeking exposure to the leading U.S. and China online retail platforms.
TRADE OF THE WEEK
This week, I have to broach the topic of these intensive stock splits concluded by Tesla and Apple. As a result of announcing the splits back in early August, shares of Tesla shot 50% higher and Apple stock soared by 45% before this week’s sell-off.
One has to wonder if the boards of all the other stocks that trade in excess of $500 per share shouldn’t announce stock splits as well. If Tesla and Apple can add hundreds of billions in market cap just by splitting their shares, what’s to keep the most expensive big-cap tech stock from doing the same.
I’m talking about Amazon.com (AMZN), trading at around $3,250 after hitting a high of $3,550. It stands to reason that if Amazon announced a 5 or 10 for one stock split that the stock would soar to $3,800-$4,000. Pick a number.
Following this week’s correction, my AI-driven Seasonal Chart is flashing across-the-board “Higher” readings for the next 20,30,40 and 50-day periods.
Similar to the sector chart shares of Amazon barely breached its rising 50-day moving average and are trading comfortably back above this key trend line. The stock did a lot of work building a base at this level between June through August.
Depending on the price action over the next couple of days, I’m looking to put AMZN on as a new trade. Get signed up today and be ready for when I pull the trigger on this trade and other high-quality trades like those noted above.
Our Weekly Power Trader advisory service takes positions in only blue-chip stocks and ETFs that are “green lighted” by my proprietary AI tools, and when confirmed, are added to the portfolio with my investment capital invested as well.
Trading Thoughts: 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 and allocate no more than 5% of trading capital to any single trade.
I allocate less than 5% of my portfolio if I hold a position overnight. On average, less than 1% of the portfolio should be at risk if you hold a position less than one day. I personally look to enter a position at the predicted LOW (BUY) price or yesterday's close price. For Weekly Power Trader, my stop loss for stocks is 2% and my target gain is 2%.. I target 75% accuracy using these signals.
Through the Weekly Power Trader service, we tie our Tradespoon Live Trading Room to manage the parameters of every trade. And we update our closed positions daily. The two platforms work seamlessly to provide our subscribers with the most robust trading experience available anywhere in the market today.
For those that have followed since inception, a $100,000 initial investment when backtested may have grown to over $1.7 million dollars. This stellar performance is made possible by being right on over 76% of all trades with an average profit of 24.80% per trade. This kind of performance stands alone among all other trading services.
Once you’ve become a member to any of our service – Weekly Power Trader or Aggressive Power Trader, I highly encourage you to view the instructional videos on how to best use your membership and participate in live weekly strategy roundtable workshops that are also archived in the event that they need to be viewed at a later time.
Traders seeking the most-timely directional trading strategies where 3 of every 4 trades are profitable should take action and come alongside the Yellow Tunnel community and make Weekly Power Trader and Aggressive Power Trader your daily trip to the bank.
Our AI platform crunches all the data 24/7, generating a constant stream of trades with the highest probability of generating incredibly profitable returns available to beginning, retail and professional traders anywhere in the marketplace today.
Go to our website at www.yellowtunnel.com and make the Weekly Power Trader service your default trading system where the AI that powers my all-world, always thinking platform.