January 29th, 2021 | Issue 61
Hello Traders, We moved into our current house nine years ago. It's only been nine years and everything is already breaking, obviously all at once. It used to be that things would be manufactured with longevity in mind. Cars lasted for years, so did refrigerators and ovens. Companies took pride in the longevity of their products, often using it as a way to advertise and promote.
Then, most manufacturing moved overseas and it became a lot more cost-efficient efficient and profitable to make crap. Apparently, as I am being told by a handful of repairmen, I cannot expect anything to work for more than 10 years. Believe it or not, the ice maker in my 30-year-old fridge, left here by the previous owners has outlived the new ice maker purchased by me less than a decade ago. Now I am just waiting to see what's next.
This past week, the market has been dominated by high-profile earnings and the Reddit community making a crusade of squeezing the most heavily shorted stocks available in companies that were all but left for dead a couple of months ago. Now, there are over six million accounts at Robinhood that own GameStop Inc. (GME) and are pushing the stock to new all-time highs which have triggered a tsunami of short-squeeze scenarios.
This is just another fascinating outcome of the pandemic economy we all live in and to see this David versus Goliath battle raging between the millennial investors and the mighty hedge funds is just wild. Most of us market pros have never seen anything like this before other than the mania during the dot com days.
What is getting lost in the fray of the "kill the hedge funds" crusade is how many feature companies have reported lights out fourth-quarter earnings, the most impressive being from Microsoft Corp. (MSFT) that saw its share trade to a new lifetime high. But there was a great deal of bullish expectation built prior to earnings season kicking off, and now we're seeing some well-deserved selling on the news.
To great returns, Vlad Karpel P.S. Please see below for access to the Power Trading Live Strategy Roundtable presentation I recorded on Thursday, January 28th. The link is below...
TRADE IDEA OF THE WEEK Within the hot retail space, I prefer to work with a stock where the fundamentals are showing signs of improvement and sales trends are picking up momentum. One of the companies that have caught my attention for a few reasons. This is a company, like many, is having to transform itself from predominantly brick-and-mortar, to a digital eCommerce business model.
It will close 45 stores in 2021 and continue to drive its online presence that should result in a ramp of top and bottom-line results. Jefferies turned positive on on this company with an upgrade to a Buy rating back on December 18 after having the department store stock set at Hold...
CURRENT TRADING LANDSCAPE The SPY rebounded today from oversold levels at $371 level and was not able to break overhead resistance at $381. Short-term the range is now defined as between $371 and $38. Based on the futures data, the market will open to the downside and can potentially retest recent lows (371) tomorrow or next week.
The key support remains at $371 (worse case $364. Values stocks (JPM, CVX, etc.) are approaching bullish entry levels (50 days MA). The bulls have been losing momentum and I still expect up to a 5% correction in early February.
The bull market has resumed its long-term rally and will continue to make new highs into March-April. I would be a buyer using any short-term corrections, and use dollar-costdollar cost averaging strategy to accumulate positions. If you are trading options consider selling premium with April and May expiration dates...
SECTOR SPOTLIGHT
The mania surrounding GameStop Inc. (GME) is spilling over into many of the specialty retailers that are also attracting huge attention from the short-squeeze herd. Bullish momentum is broad and volume is surging with each day this situation stays fueled by social media and the Reddit community.
The SPDR S&P Retail ETF (XRT) reflects the excitement of the trading universe over the names of the companies that occupy the top ten holdings. These are not your household top-shelf retailers but rather a smattering of second-tier companies, some of which have considerable amounts of their floats short....
Power Trading Live Strategy Roundtable
To effectively compete in the rapidly moving equity markets, active day traders and swing traders must stay ahead of new market innovations and technological changes used by hedge fund traders and proprietary trading firms. With traders like you in mind, we designed this intensive roundtable where you will deepen your understanding of all aspects of stock and options trading.
I will show you:
Click Here To Watch Our Most Recent Trading Session, Recorded On Thursday, January 28th.
NOTE: We encourage all subscribers to view the instructional videos on how to best use your membership and invite our members to participate in live weekly strategy roundtable workshops that are also archived for your convenience so that they can to be viewed at a later time.
AGGRESSIVE POWER TRADER In our primary trading service Aggressive Power Trader, I direct our subscribers through the "trade decision-making process" with the mindset of being in and out of trades within 24-48 hours with the objective of booking 30%-60% gains against the amount of capital at risk on each and every trade
The beauty of this service is that it provides tomorrow's featured trades the night before so traders can analyze and work on how they might best want to participate. 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.
Here is a snapshot of how we produce our Daily Live Trading Room Sessions and how we pack in a lot of information which can be accessed from whatever device your driving.
WEEKLY POWER TRADER 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 out AI Tools to provide the Top Bullish and Bearish Stocks, each with an Entry Price, Target Profit, and Stop Loss.
The next Weekly Power Trader list will be posted on Sunday night, January 30th. Don't miss the next winner. Weekly Power Trader Stock Watch List Weekly Power Trader Options Watch List
DISCLAIMER: Vlad and his team may have a financial interest in the picks as they trade many of the same equities and options they pick. Vlad Karpel and YellowTunnel (Company) is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. As an investor, you know that any kind of investment opportunity has its risks. There is no such thing as low risk stocks and we recommend you invest wisely and that only risk capital should be used to trade. Investing in Stocks and Options is highly speculative. No representation is being made that the use of this strategy or any system or trading methodology will generate profits. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on here and on our web site. The past performance of any trading system or methodology is not necessarily indicative of future results. All of the content on our website and in our email alerts is for informational purposes only, and should not be construed as an offer, or solicitation of an offer, to buy or sell securities. Remember, you should always consult with a licensed securities professional before purchasing or selling securities of companies profiled or discussed on YellowTunnel.com. Performance results that are discussed above are from the Live Trading Room, multiple YellowTunnel tools were used to achieve these results. Trade % Gain/Loss is calculated by dividing the $ Gain/Loss by the Max Risk which is the posted Stop Loss for the trade. This email was sent to edwardlorilla1986.paxforex@blogger.com by info@yellowtunnel.com. Questions or inquiries regarding the website and/or service may be submitted via email to info@yellowtunnel.com. You may also complete our inquiry form located here.
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