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. December 5th, 2021 | Issue 107
Hello Traders, A rough week for stocks as volatility soared following a triple dose of troubling headlines that set into motion a large-scale risk-off atmosphere for the market as a whole and especially high PE growth stocks. The omicron variant has now spread to the U.S., Fed Chairman Jerome Powell doubling down on his surprising pro-taper commentary and jobs report that came in way light of forecast.
Upcoming inflation data in the form of CPI on Dec. 10 and PPI on Dec. 14 only compound the uncertainty that feeds nervous trader sentiment. As a result, the S&P and Nasdaq are testing key technical levels in what is a definite risk-off market. So, much was going right heading into Thanksgiving – energy prices had faded well off their peak highs, Pfizer had announced a new pill that would treat Covid-19 symptoms, Congress had passed the infrastructure bill and third-quarter earnings were better-than-expected for much of the S&P 500 despite supply chain shortages.
There is a late-week flight to safety in the bond market, the 10-year Treasury yield falling to 1.36% in a remarkable move considering the Fed's modified fiscal policy to end QE and start raising short-term rates. But it's not about today's move lower in bond yields, but rather about the perception of higher rates in the future that look inevitable given the Fed's rhetoric...
To great returns, Vlad Karpel P.S. Please see below for access to the Power Trading Live Strategy Roundtable presentation I recorded on Thursday, December 2nd. Click Here.
TRADE IDEA OF THE WEEK For traders looking for single stock recommendations that are key players in the world of vaccines, then look no further than Modena Inc. (MRNA). The company's RNA platform allows for the rapid development of vaccines to address new strains and variants to where drug candidates can be expedited through the FDA process in short order. The company is already working on a new vaccine for omicron.
According to Yahoo Finance, Moderna is set to earn $25.76 per share based on the consensus of 13 analysts. This puts the current PE of Moderna shares of just under 12x and an attractive valuation for a company enjoying hyper top and bottom-line growth.
Trading MRNA has been tricky following a massive run-up that peaked in early August of this year. Since then...
(Advertisement) Today is the perfect time to reposition your portfolio and trading strategy Dear Fellow Trader,
2021 is almost in our rearview mirror, and as we look ahead we wonder: Is this a good time to start trading?
You see, there are so many reasons to not trade on the stock market. And the omicron breakout, inflation fears, supply chain issues and even the continuing delta pandemic brought plenty of its own reasons to the table this past week.
With the chaos that ensued since January 2020 to today (December 3, 2021, we had over 1075 winning trades (86% winners*).
And now may be the perfect time to start to reposition your holdings and Dynamic Power Trader is the perfect tool for the job.
CURRENT TRADING LANDSCAPE The $SPY now sits along with a key technical level - its 50-day moving average. The value/reflationary stocks led on the week and closed right below the 50-day moving average, $VTV at $140. The technology stocks underperformed, save for a handful of semiconductor stocks.
The $DXY traded flat closed at $96 above key breakout at $94.5. The $TLT traded higher, at $155 and testing the key overhead resistance not seen since January. The $VIX traded sharply higher to $34, implying an oversold short-term condition.
The $SPY long-term support level is at $444 followed by $426 (low probability level at this point). The SPY overhead resistance is at $468. Volatility can persist for the next couple of weeks...
SECTOR SPOTLIGHT The renewed focus on Covid-19 puts the biotech and healthcare sectors squarely in the sights of traders looking to seize on the newfound attention to fighting the spread of the omicron and delta variants. The iShares Biotechnology ETF (IBB) have been under pressure for the better part of the past two months after it was thought the pandemic had been arrested and the fight against Covid was being won on many fronts.
The top 10 holdings in IBB account for about 51% of total assets with a few holdings among those companies leading the vaccination efforts with research and products...
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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