| 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.  January 23th, 2022 | Issue 114
Hello Traders, Another week of white-knuckle market volatility, one where the Nasdaq Composite and Nasdaq 100 broke below their respective 200 DMA. The Russell 2000 broke its 200 DMA back in December, tried to regain it twice and has since taken out the lows and is in a protracted downtrend and in need of a major catalyst to get it back on good footing. The Dow also pierced its 200 DMA, but can easily recover on any relief rally.
A flight to safety has bond yields retreating into the weekend, the 10-year Treasury yield down to 1.76%. Oil and commodity prices are also easing late in the week after posting strong gains for most of January. Sticky inflation, tighter Fed policy and mixed earnings from the few companies that have reported are keeping traders in flux where stock and ETF picking is at a serious premium.
If the Nasdaq can right itself after Netflix Inc. (NFLX) fell by 23% on disappointing Q4 results, that will be a significant win for the broader market. In Friday's session, there was already some evidence of bargain hunting in the chip sector that is a welcome development for a market trying to find a bottom. That said, a lot of technical damage has occurred that will take some time and some bullish earnings to repair...
Have a wonderful week ahead and let's create some meaningful wealth together in 2022... 
To great returns,  Vlad Karpel
P.S. Please see below for access to the Power Trading Live Strategy Roundtable presentation I recorded on Thursday, January 20th. Click Here.
TRADE IDEA OF THE WEEK Commodities have been the center of traders' attention for the better part of the month of January as the inflation trade is the most favored for bullish strategies. Of the many asset classes to trade within the larger commodity space, my AI indicators are quite bullish on silver and the prospects for further gains.
As the reflation story gains more traction with the diminishing of the Omicron phase of Covid-19, I'm looking to increase exposure to precious metals with an emphasis on silver as it has compelling application for industrial and consumer end markets in addition to being an inflation hedge and storehouse of wealth. Silver's application in the manufacture of solar panels and electric vehicles makes for a compelling investment thesis alone, as both are strong secular growth markets.
Following a huge run-up from the pandemic low in March 2020 to August 2020, the price of silver doubled, followed by a multi-month consolidation that is setting up the sterling metal to resume its upside breakout trend from a very attractive entry point, as can be seen in the 5-year chart below...
(Advertisement) Earnings Season is here and Microsoft (MSFT) to announce its earnings this Tuesday. The last time we traded MSFT during Earnings Season we had a 46% return on risk.
Let me repeat that, we had a 46% return!
That's a pretty good return after holding the position for only 5 days!  Be prepared: Microsoft (MSFT) is scheduled to announce its earnings on January 25th.
This is my favorite time of year!
CURRENT TRADING LANDSCAPE  Trader sentiment has been sorely damaged given the emphasis by the media on the carnage taking place in the very high price-to-sales stocks that are the poster children of the ARKK Innovation ETF (ARKK), which is down 52% from its high set back in February 2021. It plus the false breakout in the Russell 2000 in early November and a material breakdown in the junk bond market going back to October were early indicators that trouble was in store for the Dow, S&P and Nasdaq. And it surely has played out that way so far in dramatic fashion.
The $SPY continued to trade lower, down another 1.2% at $441 and testing the 200 DMA. The value/reflationary closed lower, down 0.8%, approaching the 50 DMA. The technology sector ($QQQ) is below the 200 DMA, closed down 1.4%, hitting $354 and approaching the October low.
The $DXY is resuming its downtrend and approaching the key long-term breakout level of $94.5. The $TLT briefly reversed its vertical move down, up 0.7% and closed below the 200 DMA. $TLT still is trading at the extremely oversold level. The $VIX traded higher, hitting the 32 level...
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 - VIDEO Trader Decision Making Process During Tradespoon's Live Trading Room, I am often asked to explain how I make my trading decisions. I am happy to share my trading process with you, in order to help you avoid common trading mistakes....
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.
YellowTunnel LLC, 318 Half Day Rd., Suite #215, Buffalo Grove, Illinois 60089. Website: https://www.yellowtunnel.com
Copyright © 2022 Yellow Tunnel LLC. All rights reserved.
|
In order to unsubscribe from this mailing list, please click here
No comments:
Post a Comment