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.
Selling pressure characterized this past week as September is living up to its historical reputation as the worst month of the year for stock market performance. The on-again-off-again risk sentiment surrounding the Delta variant and the narrative about just how strong growth will be in the months ahead has pressured most of the reflation stocks where there is a real value relative to the extended tech sector.
Talk of the Fed tapering is also keeping traders on edge after seeing weekly jobless claims fall to their lowest level since before the pandemic started. However, the market has adapted well to COVID-19 news and managed to maintain its composure without giving back more than 1%-2%, this week being indicative of the market’s technical resilience.
The question of whether another rotation out of growth and into a value is not a matter of if, but when – and this is exactly where the power of our AI models in our Weekly Power Trader advisory service becomes so valuable.
The $SPY continued to lose momentum and reached the $448 level. The value/reflationary stocks traded lower this week. Technology stocks also struggled.
The $DXY started to break down its multi-month bullish momentum, but short-term oversold. The next level of resistance is at $93. The $TLT bounced back above the 50-day moving average (the bullish medium-term for the market).
Based on the steep correction in the reflationary stocks, strong dollar, and overbought technology stocks, the market will continue the pullback in September. The $SPY short-term support level is at $445, followed by $441. The SPY overhead resistance is at $455. I expect the next stage of pullback to resume this week or next. I would be a buyer of value stocks on pullbacks and sell technology stocks on rallies.
I would consider rebalancing the portfolio at this point to be more market-neutral. The second wave of selling will continue for the next 2-4 weeks. Market corrections are never a one-way trade.
Based on our models, the $SPY can pull back 3-5% from the all-time highs in the next 2-4 weeks. If you are trading options consider selling premium with October and November expiration dates.
"BUY" signal based on the Aggressive Power Trader Portfolio for tomorrow is at $448 level using SPY and "SELL" signal is at $452 for short-term traders.
Based on our models, the market (SPY) will trade in the range between $435 and $455 for the next 2-4 weeks.
NEW WEEKLY DYNAMIC POWER TRADER SERVICE
We recently launched our new Earnings 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 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.
Signals have historically averaged over 86% accuracy in my live trading since inception. Sometimes we 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 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.
How even 9% of missed gains
add up quickly…
My name is Vlad Karpel, and I developed this proprietary algorithm using artificial intelligence to power my trades.
And while this system has helped me beat the market almost 38 times over, I still felt I could do better.
When I release new trade alerts, I’ve already run them through algorithms and analysis to ensure that I am passing off the best possible trade to my subscribers.
And while this AI-powered trading system is fast, there still is a period of time when I’m watching and analyzing the trade’s potential… but I haven’t bought it yet.
I call this period of time, the 9% Gap.
As I work through the deep analysis on trading opportunities, I haven’t made any recommendations yet. Meanwhile, the opportunity is still there for the taking.
It might be hours or even days before I release this trade recommendation to the Live Trading Room.
Recently, I’ve tested out a new approach to my trades - one that gets me trading in these stocks before I release the alerts.
The result? A 9 point increase in gains per trade.
That might not sound like much, but it actually is more than you think...
There are rumblings that Congress is getting closer to working out an infrastructure deal that will finally get passed. White House pressure on the Democrat-controlled House is pretty intense, especially after Ida destroyed billions of dollars of property in the northeast corridor. The timing looks good for a green light vote this month.
Assuming this comes to pass, the minor pullback in the Industrial Select Sector SPDR (XLI) presents itself as a buying opportunity for those traders that want to avoid stock picking and just buy the sector. The top ten holdings within XLI make up about 41% of total assets represented by a strong lineup of blue-chip stocks with great potential.
From a technical standpoint, shares of XLI peaked in early May and have been consolidating a big run-up for the past four months. The chart shows a very constructive base by which the shares should clear the previous high and push well higher.
When we apply our AI-driven Seasonal Chart to XLI, we see a short period of further consolidation over the balance of September followed by a breakout higher move in subsequent weeks ahead. For traders wanting to receive our buy signal and related trades in XLI, make the decision today to become a new member of Dynamic Power Trader and don’t miss out on when we trade XLI.