| 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 21th, 2021 | Issue 105
Hello Traders, Leading up to this week, the market was riding on a wave of good news that included a strong earnings season, a breakthrough COVID pill from Pfizer, the passage of the infrastructure bill and a dovish taper policy initiated by the Fed. True to form, traders and investors pushed the major indexes to fresh highs, and then the headwind of a spike in new COVID cases in Europe capped the rally with all but technology and retail sectors undergoing profit-taking and broad selling pressure.
New concerns about future growth are creeping back into market sentiment after Austria announced a national lockdown from COVID with the possibility that Germany may do the same. The news is fueling buying of Treasuries and technology/growth stocks and the selling of reflation and reopening stocks. The trading landscape has the "here we go again" feel to it re Covid, so traders need to be responsive to his sudden rotation... 
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 One of the more controversial big cap stocks being traded is Meta Platforms Inc. (FB), formerly Facebook Inc. that just underwent a recent name change. The company has been the subject of social and political pressure over control of biased content, and opening itself up to possible government oversight at some point. However, these allegations and actions usually end up in some sort of a regulatory fine.
What is at the heart of the new name is how the company is targeting what is known today as the "metaverse" Wikipedia defines it as follows:
"The metaverse (a portmanteau of "meta-" and "universe") is a hypothesized iteration of the internet, supporting persistent online 3-D virtual environments through conventional personal computing, as well as virtual and augmented reality headsets. Metaverses, in some limited form, are already present on platforms like VRChat or video games like Second Life."
Wikipedia explains further applications are underway:
"Current metaverse ambitions are centered on addressing technological limitations with modern virtual and augmented reality devices, as well as expanding the use of metaverse spaces to business, education, and retail applications. Numerous entertainment and social media companies have invested in metaverse-related research and development."
So, there you go...
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CURRENT TRADING LANDSCAPE  The $SPY traded higher today and settled right at the all-time high, $470. The value/reflationary stocks traded lower, and down another 0.4%. The technology stocks traded higher, up 1.0%.
The $DXY had a small pull back, broke through $96 level and closed right at the key overhead resistance level. The $TLT traded higher and settled right above 50-day moving average.
The $SPY short-term support level is at $463 followed by $452. The SPY overhead resistance is at $470. 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...
SECTOR SPOTLIGHT  When the market takes on its COVID posture, it basically rewards big cap tech, staples, healthcare and penalizes just about everything else. This isn't the first rodeo for how the market trades when fears of another surge in pandemic conditions permeates trader sentiment. To this point, sometimes is pays best just to buy the big cap technology ETFs that are on the receiving end of rapid fund flows trying to overweight in tech.
In this case, it's no wonder shares of the Technology Select Sector SPDR ETF (XLK) are trading at a new all-time high. Aside from QQQ, the XLK is the go-to ETF for going long the basket of the best big-cap tech stocks. The top ten holdings in XLK make up about 67% of assets, making this a highly concentrated ETF.
Even with the big corrections in PayPal Inc. (PYPL), Visa Inc. (V), Intel Corp. and (INTC), the big weightings in Microsoft Corp. (MSFT), Apple Inc. (AAPL), Adobe Inc. (ADBE) and Nvidia Inc. (NVDA) are doing the heavy lifting as shares of XLK appreciate on the back of these tech behemoths...
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 Importance of Risk Management in Trading In our previous blog, we discussed Morgan Housel's Psychology of Money, which references two different forms of profit: getting wealthy and staying wealthy. Housel believes a combination of frugality and paranoia is key to staying wealthy; here at YellowTunnel we believe in the importance of trading psychology to both accumulate and retain wealth. Statistics and analysis, also key elements of the YellowTunnel platform, offer a good estimate of how a certain stock or symbol can trade but "black swan" events, for example, are nearly impossible to predict. This where risk management and trading psychology are essential...
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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