You receive this email, because you signed up to get email from YellowTunnel newsletter on 11/12/20. If you no longer wish to receive any emails from YellowTunnel, please use the "Unsubscribe" link towards the bottom of this email. September 19th, 2021 | Issue 95
Hello Traders, Another week of mixed to lower performance for the stock market has September living up to its reputation as the most difficult month of the year for the bulls. The same concerns and fears of last week have carried over to this week plus some new wrinkles that have triggered more volatility – namely higher taxes and higher bond yields.
Better-than-forecast retail sales and manufacturing data sent the yield on the 10-yr Treasury Note up to 1.38%. There is the nagging issue of inflation which is very elevated at the wholesale level and persistently up on the consumer level.
Crude prices topped $72/bbl this week, (see Sector Spotlight section below for more details) implying higher gasoline prices and natural gas prices rose above $5/mcf for the first time in seven years that makes for an expensive winter heating season. Wage inflation is also a sticking point where 11 million unfilled jobs are forcing hiring incentives and pay increases to attract talented workers at all levels of the workforce.
To great returns, Vlad Karpel P.S. Please see below for access to the Power Trading Live Strategy Roundtable presentation I recorded on Thursday, September 16th. The link is below...
TRADE IDEA OF THE WEEK ExxonMobil Corp. (XOM) is the top holding within XLE, and for good reason. The company is the biggest U.S. energy company by market cap and so happens to be the second-largest natural gas producer in the world behind Russia's Gazprom.
2021 revenues for XOM are forecast at $288 billion, up 56% over 2020 and earnings look to come in at $4.28 per share versus a loss of $0.33 per share in 2020. The company is clearly in a powerful sales and earnings cycle that sets up the stock for a major run higher into the fourth quarter...
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CURRENT TRADING LANDSCAPE From a purely technical standpoint, the $SPY bounced off the 50-day moving average, $442 and settled below prior break out $449. The value/reflationary stocks traded higher as did technology stocks following a six-day wave of selling.
The $DXY started to break down its multi-month bullish momentum, but the short-term is oversold. The next level of resistance is at $93. The $TLT bounced back above the 50-day moving average (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 $442, followed by $438. The SPY overhead resistance is at $455. I expect the next stage of the pullback to continue in the next two weeks...
SECTOR SPOTLIGHT Of all the situations grabbing headlines, the upward prices of oil and natural gas is catching most traders off guard. These are not crowded trades and with Hurricane Ida disrupting some operations in the northeast coupled with supply disruptions in Europe and ports in Asia, there is strong momentum of late for these two fossil fuels.
Traders are already speculating on harsh winter conditions for the U.S. and Europe, making for even higher prices going forward. At some point OPEC and non-OPEC nations will commence higher output levels, but until then, the least path of resistance at present is higher...
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. 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.
TRADING CONCEPTS The Ego Problem Many traders believe that to succeed in trading, one must get rid of their ego, or at a minimum, tame their ego.
Is it really true? Nope, and I'll tell you why.
It's understandable why so many believe this. On the surface, it does indeed appear that it is our ego that is at the root of our greed. It also seems as though it is our ego that doesn't allow us to accept loses, or makes us impatient as we wait for the best entry...
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. All investing strategies are made available to the general public on a regular basis. We do not provide personalized financial advice or investment recommendations. 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 here and on our website. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE SUCCESS: It should not be assumed that the methods, techniques, or indicators developed at YellowTunnel will be profitable or that they will not result in losses. Nor should it be assumed that future picks will be profitable or will equal past performance. 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. Yellow Tunnel's performance data represents the average return on all trading recommendations from January 1, 2020, to Today. ** Triple-digit returns are not typical and are not intended to reflect the likelihood of similar returns in the future. 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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