February 21th, 2021 | Issue 64
Hello Traders, The bull trend has run into some mixed headwinds that have traders working hard to sift through the issues at hand that are potentially disruptive forces. First and foremost is the newfound concern about inflation after wholesale inflation data for January came in hot and well above forecast.
On Thursday, Treasury Secretary stated in an interview that she and the Fed would rather let inflation push higher than step on the stimulus brakes just as the vaccine rollout is making progress and the economy is stabilizing.
The yield on the benchmark 10-year Treasury rose to 1.33%, commodities are trading higher across the board with crude oil making the most pronounced move up as WTI has cleared $60/bbl and reasserted the energy sector as a market leader.
As earnings season winds down traders seeking the next big catalyst can focus on the the Congressional Covid-19 stimulus bill that should be passed by the end of February and provide stopgap funding for millions of Americans still out of work.
It is thought that a major infrastructure spending bill will start to make progress soon thereafter, giving the market what it loves to embrace, huge spending and stimulus that has the full weight and support of the Fed, Treasury, White House and Congress.
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 11th. The link is below...
TRADE IDEA OF THE WEEK Occupying the number one position in XLE is arguably the most hated oil stock by long-term holders until recently. For years, the stock couldn't get out of its own way as revenues and earnings plummeted, calling into question whether the company would slash its tried-and-true dividend.
The company has withstood the storm and has seen its shares recover from a low point of $30 to currently trade at $52. Where it has certainly made an impressive move off the low, the 2-year chart shows that it traded as high as $82 when oil previously traded at $60/bbl, implying the potential for considerable upside going forward....
CURRENT TRADING LANDSCAPE The SPY continues to trade in the narrow range. All sectors traded in the red except utilities (XLU). Growth stocks sold off the most this past week. AAPL briefly crossed below its 50-day moving average. Short-term, the SPY range remains between $370 and $395. The DXY rebounded today and a stronger dollar will pose a challenge for value stocks in the short-term. TLT remains in the downward momentum as the yield curve steepens.
A short-term correction has started and probably has 1-2 more weeks of making lower lows and lower highs. The $388 level is key support for the SPY short-term with major technical support is now at $370-$375 and I expect the SPY to retest these levels in the next 1-2 weeks.
I would be a buyer using any short-term corrections, and use dollar-cost averaging strategy to accumulate positions. If you are trading options consider selling premium with April and May expiration dates...
SECTOR SPOTLIGHT
One cannot view the current market landscape without being totally impressed with the rally in the energy sector. It's been truly eye-popping, considering this time last year crude technically traded at a negative valuation because of contango-related futures trading that roiled the oil market.
WTI crude's latest advance to $60/bbl brings new life to the once downtrodden, politically unpopular sector that has been severely under-owned by institutional investors. Now there is a panic move back into the sector incited by drastic production cuts, low refining inventory levels and long lead times to raise those inventories.
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 11th.
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
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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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