March 14th, 2021 | Issue 67
Hello Traders, What a roller coaster of a market. The bond market went through a reset in the wake of some bottleneck inflation and rising growth prospects, the latest bond auctions went off without a hitch, hedge fund titan David Tepper gave his thumbs up for stocks and the Nasdaq caught a serious bid and rallied 1,000 points or 8% while the Dow and S&P traded to new all-time highs.
The latest $1.9 trillion stimulus plan was signed by President Biden and checks will start going out this weekend. Any worries of a bond market meltdown or major breakdown in the dollar have been alleviated for the time being as both stabilized, affording traders to re-focus their attention on high-beta growth stocks. It was a true demonstration of just how much pent-up demand there is for money to buy into the market on any weakness.
The balance of the month will center on portfolio window-dressing and digesting more economic data that may or may not influence bond yields. But it can be said that the market is adjusting to higher yields as part of the whole recovery theme where rising interest is a natural event as long as sales and growth prospects are accelerating. And that seems to be the base case by which the trading landscape is embracing.
To great returns, Vlad Karpel P.S. Please see below for access to the Power Trading Live Strategy Roundtable presentation I recorded on Thursday, March 11th. The link is below...
TRADE IDEA OF THE WEEK On a single-stock basis, one of the most compelling stories and stock performances of 2020 was home exercise equipment company. Their stationary bikes were easily the hottest consumer item on the market with the company still trying to catch up with a deep order backlog.
The back-to-the-gym mentality of the past month weighed on the stock even as sales and earnings growth for 2021 are not being revised lower. Sales for this year will grow by 124% from $1.83B to $4.1B and earnings will ramp from a loss of ($0.32) to a profit of $0.32 and are forecast to more than double to $72 per share in 2022.
Recurring subscription sales are modeled similar to software-as-a-service (SaaS) which makes the company more of a tech company in the future than an equipment provider. However, orders of the company's "Tread" are very robust, with the company moving aggressively to spend $100 million to speed up shipping and bolster customer service....
CURRENT TRADING LANDSCAPE Coming into the week, it felt as if the market was going to make a decisive move in either direction depending on the bond market's sentiment. A break above 1.61% for the 10-yr Treasury would have set in motion a further breakdown for the Nasdaq, but the bulls prevailed, bond prices held, and stocks rallied led by the tech sector.
With the market broadening out, a good foundation for an extension of the bull trend is being built. As much as two-thirds of the total market cap (S&P and Nasdaq) is weighted in the tech sector – so it goes without saying – as the tech sector goes, so goes the market. And to the joy of the bullish camp, tech showed up this week when needed.
The SPY continued its rebound from Friday led by the strong rebound in the value stocks. Short-term, the SPY range remains between $368 and $395. The SPY is reaching overhead resistance at $387 and can retest recent lows next week. The DXY is losing the momentum. The TLT is in the process of building a bottom...
SECTOR SPOTLIGHT
As the spotlight has been shining bright on the cyclical and value stocks before this week's rebound in the growth sectors, the work-from-home and work-from-anywhere stocks and ETFs were a source of funds. However, many of the work practices and systems put in place during the pandemic are not going back to pre-pandemic norms, which havehas been widely publicized by the majority of large corporations.
The cost savings have been huge and productively levels of many layers of corporate labor forces have proven to be efficient and a strong contributor to wider profit margins that are driving strong earnings growth.
The Direxion Work From Home ETF (WFH) put up a big 2020 performance, gaining over 50% after going public in late June. As the momentum for epicenter and reopening stocks took hold late last year, shares of WFH pulled back off their high of $76 to $64 before buyers stepped in the past two weeks as certain components related to cybersecurity, networking and mobile communications equipment were snapped up....
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, March 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
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, March 14th. 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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