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. October 17th, 2021 | Issue 100
Hello Traders, A good week for stocks after the first round of third-quarter earnings from some of the biggest banks crossed the tape. That and some early signs that some of the backups at global ports are starting to lift. CPI came in above expectations, PPI inflation data came in below expectations, retail sales came in above expectations and the bond market is maintain a range, but yields are again pushing higher as of Friday.
The market was bracing for another leg lower and is managing to work through some of the headwinds. Traders believe the Delta variant has peaked and seasonality is now starting to kick in. And yet, we've yet to hear from 95% of the S&P 500 companies about current business conditions and forward guidance with widespread labor shortages and stubbornly high energy prices being the major inflationary hurdles for the market.
To great returns, Vlad Karpel P.S. Please see below for access to the Power Trading Live Strategy Roundtable presentation I recorded on Thursday, October 14th. The link is below...
TRADE IDEA OF THE WEEK The top holding of VanEck Gold Miners ETF (GDX) is a company that is the largest gold mining operator in the U.S. and one of the lowest cost producers in the world. 2020 revenues were $12.5 billion with gross profit coming in at $6.2 billion. It's not hard to see why people want to get in the gold mining business when margins are 50%. Fully diluted earnings were up 89% to $3/58 per share, implying a P/E of just 15x.
Gold prices topped out in August 2020 at $2,028 per troy ounce. Today, gold trades at $1,767/oz and has been consolidating a huge run leading up to last year's peak. Trading laterally for the past six months, gold now looks poised to begin a new leg higher as inflation and higher interest rates act as catalysts.
Shares of this company are trading at $57 and down from $75 set back in May of this year. Just this past week, the stock put in a key high-volume upside reversal that caught the attention of our AI screens...
(Advertisement) MY CRASH-PROOF ALGORITHM HAS HELPED ME BAG 1021-OUT-OF-1184 WINNING TRADES SINCE 1/1/20 My proprietary trading system has a historic 86% win rate… and it has been helping me pick winners for years.
Now, I'm opening this system to a group of traders just like you -- investors who want to forge ahead even though there's a host of new headwinds up-ahead. Dear Fellow Investor,
If you're active in the stock market, you know March 16th of last year was a day that will live in infamy…
As news of the outbreak spread throughout the country in February, the stock market began to swing wildly, posting terrifying drops and historic rises along the way.
But by March 16th, it officially crashed. Headlines captured the reaction from traders across the country - and the world:
As a very active trader myself, you might be tempted to think that I would have bought into this panic and adjusted my trading strategy - maybe even abandoning it entirely as many traders have done.
But I didn't need to. In fact, I was excited.
And now, we have a host of new headwinds: rapid inflation, political wrangling and deadlocks, China's fake banking system, supply chain clogs, American debt is skyrocketing, higher tax rates coming soon...
CURRENT TRADING LANDSCAPE The $SPY broke out from the range and settled right above 50-day moving average at $443. The value/reflationary traded higher, up 1.5% and settled above the 50-day moving average. The technology stocks closed in the green, up 1.80% and settled below the 50-day moving average.
The $DXY is short-term overbought and started its topping process near $94, long-term overhead resistance from the September 2020 high. The $TLT had a sharp rebound and started the bottoming process, crossed above the 200-day moving average. The fear of runaway inflation has subsided after PPI and CPI numbers.
Volatility settled below at the $16 level. The $SPY short-term support level is at $436, followed by $428 (sustained break below $428 is a low probability event at this point). The SPY overhead resistance is at $443 and then $452. At this point, I believe the recent low at $428 is set...
SECTOR SPOTLIGHT Interest rates are trending higher and the Fed has signaled loudly that it plans to begin cutting back on QE as early as November. The latest economic data supports this notion and with core inflation running hot at an annual pace of 8.6%, there is a historically strong sector that benefits from higher rates and inflation – gold.
What some traders know is that the gold mining stocks almost always outperform physical gold when the yellow metal rallies. The VanEck Gold Miners ETF (GDX) makes for a great trading vehicle to trade the sector. The top 10 holdings account for just over 62% of total assets and being long the ETF removes single stock headline risk that can be prevalent in mining companies...
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 Is Trading Psychology Included in Your Plan? Some very common things traders have heard along their trading journey: it's important to have a trading plan and stick to it, and psychology is a big factor in trading results.
All too often traders don't include trading psychology in their plan because they don't know what to put in there! A great place to start is with a morning or pre-trade routine...
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. *Win rate percentage reflects average that Yellow Tunnel's software helped me identify a profitable investment strategy.** 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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