| 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.  February 6th, 2022 | Issue 116
Hello Traders, Welcome to the Yellow Tunnel community, an aggressive short-term trading service dedicated to all classes of traders seeking to elevate their trading skills, market awareness and trading profits.
The abrupt change in Fed policy that triggered the market correction got to a point where valuations in the best-of-breed blue-chip stock traded down to levels that brought buyers off the sidelines. Many leading stocks of the past two years declined to their respective 200 DMA lines and either briefly breached them or held these key technical support levels. It's been a true test of establishing future market leadership.
There have been some very high-profile earnings-related blowups that have also tested the mettle of the market's resolve. Netflix Inc. (NFLX), PayPal Inc. (PYPL), Intel Corp. (INTC) and Meta Platforms Inc. (FB) caused a lot of tension but were offset by impressive earnings from Amazon.com Inc. (AMZN), Apple Inc. (AAPL), Microsoft Corp. (MSFT), Alphabet Inc. (GOOG), MasterCard Inc. (MA), American Express Co. (AXP) and others.
The Fed laid out their fiscal policy roadmap that didn't surprise markets from the narrative delivered back in December, stating QE would end in March, followed by the likelihood of three quarter-point rate hikes and no mention of reducing the balance sheet. It came off as a more-measured approach, but that could change with Friday's upside surprise in the employment data, crude oil topping $92/bbl and the upcoming CPI and PPI readings due out Feb. 10 and Feb. 15, where inflationary pressures probably were more elevated in January.
Ukraine remains an outside threat to market sentiment, and with the market now extended over the very short-term, some cautionary back-and-filling into the inflation data would not be unexpected and actually be constructive for market technicals. Other than the Russell 2000, the major indexes recovered their 200 DMA lines that will likely be tested once more. Any relief from the Ukraine standoff and further positive data on the Omicron variant stand to provide follow-on buying in stocks, but not without a healthy dose of volatility to keep investors guessing.
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, February 3rd. Click Here.
TRADE IDEA OF THE WEEK For all the top components that make up XLF, the one stock that is showing the most impressive price action is Wells Fargo & Co. (WFC). The company is in the midst of a major makeover under the stewardship of CEO Charles Scharf, the former CEO of Visa and Bank of New York. He took the helm at Wells Fargo following the widespread scandals in the company of the unauthorized selling of products to customers.
Mr. Scharf has done a masterful job of realigning the business and restoring the brand to its former well-respected self. There is still much work to do, but he is clearly getting the job done. The latest set of quarterly results is evidence of strong momentum across all their lines of business. Q4 earnings of $1.38 per share beat estimates by $0.25 on revenues of $20.86 billion that beat forecasts by $2.5 billion. In addition, the company raised the quarterly dividend by 25% to $0.25.
Shares of WFC have experienced a high-volume upside technical breakout, where the only issue at hand is to determine the optimal entry point following a good week of bullish price action. Here too, is where we will use our AI tools to provide a sweet spot for initiating long-side trades in WFC. To get in on this trade, sign up today and don't miss out on WFC and our other timely long and short strategies...
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CURRENT TRADING LANDSCAPE  Traders have to be super sensitive to the sudden shifts in sentiment that trigger buy/sell programs that can add or subtract 1%-3% in the averages in a matter of minutes. High-frequency trading firms dominate the business of how the market trades. Part of successfully navigating a market with wild swings is to respect the technical integrity of each trade and not get caught up in or tempted by headline-driven trading.
The $SPY sold off Thursday, down 2.4% and closed at the 50% retracement from 2022 low to high. Friday's session is seeing the benchmark index trade about 1.0% higher. The value/reflationary trades are just above the 50 DMA. The technology sector ($QQQ) trades around $359 at the 50% retracement from the last two weeks low to high...
SECTOR SPOTLIGHT  The robust jobs data released Friday weighed heavy on the bond market, sending yields higher along with bank stocks that feed off of higher rates for future profits from lending services. The 2-year Treasury Note yield jumped to 1.32% as of Friday, which is a key rate by which many types of mortgages, loans and lines of credit trade-off of.
In this situation, traders seek to capitalize on the surge in rates by trading financials from the long side. In this case, the Financial Select Sector SPDR ETF (XLF). The top ten holdings make up almost 55% of total assets and are stacked with the premier companies in the industry and the ones that the market embraces most...
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 Managing Extreme Uncertainty? Although uncertainty is a normal part of trading and investing, there are periods or situations that involve extreme uncertainty, such as covid-19.
With extreme volatility and large price swings, combined with a constant news flow, it is especially difficult to make market decisions. ...
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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