February 7th, 2021 | Issue 62
Hello Traders, This past week has been highlighted by the market hitting more new all-time highs. It is looking more likely that the $1.9 trillion economic relief package is going to be passed in its full form and talk of a major infrastructure bill is already getting the market's full attention.
The just OK jobs data also gives the market the green light that endless stimulus by the Fed and Congress is forthcoming, which could have a bullish lag effect for well over a year. It typically takes up to nine months before a spending package works its way through the economy. There is still PPP money from the second round that has yet to be spent, which makes no sense when the cry for emergency funds is so loud.
The rally heading into the weekend proves there is too much money chasing too few stocks. The pullback of a two weeks ago that provided a nominal 5% correction was like a speedbump in what is a powerful bull trend that will take some element of very negative news to derail. The price action going forward is likely to show sideways consolidation followed by further gains.
To great returns, Vlad Karpel P.S. Please see below for access to the Power Trading Live Strategy Roundtable presentation I recorded on Thursday, February 4th. The link is below...
TRADE IDEA OF THE WEEK America's biggest bank boasts a market cap of $392 billion and solid mid-teens earnings growth. JPM is also right in the midst of the wave of stimulus money that is targeting both business and retail accounts.
Hands down, it is my favorite stock to trade within the financial sector. In my view, the stock is the de facto standard-bearer for the sector and the go-to stock of global institutional money managers.
The shares are on the verge of taking out the previous high witnessed in January, and any pullback will likely be nominal because of steadily rising yields in the Treasury market. There is rising support at $135, roughly 3 points below where the stock currently trades...
CURRENT TRADING LANDSCAPE The SPY continued to make incremental gains with value stocks (XLI, XLF, XLE) maintaining leadership. Short term range remains between $364 and $390. The DXY was able to stage an impressive rebound from an oversold level and currently trading near a $91-92 key overhead resistance. TLT remains in the downward momentum as the yield curve steepens.
The question on everyone's mind: Is this the beginning of the next leg up in the market or a short-term bounce followed by another retest of recent lows. For now, let's observe market price action during the next few trading sessions. The key support is now at $364-$370.
I'm of the view that the market is always looking for reasons to buy, and also reasons to sell when extreme moves have occurred. SPY is now bumping up against the high end of the trading channel with $390-$392 as the next technical resistance level. ...
SECTOR SPOTLIGHT
This week marks a special moment for the financial sector in that shares of the Financial Select Sector SPDR ETF (XLF) took out the pre-pandemic high set back in February 2020. The current selling in the Treasury market has put a firm bid under the banks, brokers and insurance companies.
From the 2-year chart of TLT below, the longer end of the yield curve has broken out. TLT reflects bearish price action of 20+ year Treasuries and it would appear at first glance that the next downside target is $140, which translates to about a 1.5% yield on the 10-yr T-Note.
Assuming TLT does fulfill that move to $140 and yields keep ticking higher, we should be buyers of XLF on any dips. Top holdings are the biggest and best of breed financial stocks traded. Most of the top 10 holdings are trading at new lifetime highs, which is huge when you consider, the rally in bond yields is just getting started...
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, February 4th.
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, February 6th. 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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