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. November 28th, 2021 | Issue 106
Hello Traders, Another COVID-19 variant has surfaced in South Africa, code name "NU" that apparently mutates faster, is more transmittable than Delta and more resistant to the current suite of vaccination treatments. It's de ja vu all over again. On a shortened Friday trading session, the day after Thanksgiving, a thinly traded market lends itself to much higher levels of volatility, and as such, the major averages swooned by 2% on average in knee-jerk selling.
Major travel restrictions are already being applied to and from South Africa and the new variant is not yet evidenced to be in the U.S. and with the advancement of the new Pfizer pill and other medicines to rapidly and effectively treat Covid symptoms, this bout of selling pressure will likely be looked down the road as a buying opportunity. But we live in a world when headlines like this cross the tape, the algorithms trigger sell programs and the market takes a step back...
To great returns, Vlad Karpel P.S. Please see below for access to the Power Trading Live Strategy Roundtable presentation I recorded on Thursday, November 21st. Click Here.
TRADE IDEA OF THE WEEK For traders looking for single stock recommendations in the financial space with excellent optionality characteristics, they need to look no further than getting long shares or bullish option strategies in JP Morgan Chas & Co. (JPM). As the sector's largest bank by market cap and assets, JPM is the de facto stock of choice to work with knowing it's the institutional favorite among fund managers where fund flows matter big.
Shares of JPM are providing an excellent entry point with the Friday drawdown in the overall market. It's a rare occasion when JPM trades down to its 200-day moving average, being such a premium company that is experiencing strong top and bottom-line growth and strengthening the balance sheet. The $160 level represents a level where short and long-term money will very likely make a strong showing...
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CURRENT TRADING LANDSCAPE Happy Holidays and best wishes to you and your family. I really appreciate you being part of YellowTunnel community.
The $SPY closed in the green on Wednesday and settled right near the last's week low, $469 before the big Friday selloff. The value/reflationary stocks closed flat. The technology traded higher into the Thanksgiving Day holiday.
The $DXY traded higher, and closed right at the 50% retracement for the past 7 years high and low. The $TLT traded higher and settled near the 50-day moving average.
The $SPY short-term support level is at $463 followed by $452. The SPY overhead resistance is at $473. Short-term, the market is overbought and volatility can persist for the next couple of weeks. I expect market to pull back further in the next couple of weeks (3-5%)...
SECTOR SPOTLIGHT Heading into the waterfall selloff in Friday's session, the bank sector was acting best in class as bond yields were inching higher and consumer spending trends were showing strong data week-over-week. As the market contends with this new development, the trading landscape will likely revert back to its pre-Friday profile, assuming this NU variant is arrested and contained from entering the U.S. in large numbers.
Under this assumption, traders could consider buying the financial sector on this meaningful dip. Shares of the Financial Select Sector SPDR (XLF) are trading back down to a key support technical level of $38, where it should find strong buyer interest...
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 How to Set Trading Goals Trading goals are important for trading in the stock market. What do trading goals do? They help traders stay motivated, keep them on track with their trading plan and achieve the success all traders look for. One established trading goal is a trading plan for the future. When trading goals are set, traders know what to focus on and how they will measure their success or failure.
A trading goal may be as simple as making a certain amount of money (also known as your profit and loss) from trading in one year's time, or it could mean meeting specific metrics by which you measure your daily profit and loss...
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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