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. March 27th, 2022 | Issue 123
Hello Traders, Stocks are on the verge of another up week as a result of a monumental rotation out of fixed income and into equities. Most of the market's 11 sectors traded higher on the week as traders from the soft landing and hard landing camps for the economy saw growth, value, defensive and dividend stocks rally.
The futures market and the bond market are telegraphing a 50-basis point rate hike at the May FOMC meeting, but it would not really surprise Wall Street if the March inflation data released in early April approaches 10% that has the Fed conducting an intra-meeting rate hike. It just depends on the data the crosses that tape over the next three weeks will weigh on this possible scenario.
To great returns, Vlad Karpel P.S. Please see below for access to the Power Trading Live Strategy Roundtable presentation I recorded on Thursday, March 24th. Click Here
P.P.S. Join our Discord Community to participate in our Free Live Trading Room Sessions every Monday and Wednesday at 8:15 am cst. Click Here To Join
TRADE IDEA OF THE WEEK Of the stocks in the XLK that are a key barometer to the health of the tech sector, I would argue that Microsoft Corp. (MSFT) is one of the three or four companies where the bulls place their long-term confidence. Their business model is very diversified and positioned in many of the core growth areas that have strong fundamentals.
Microsoft offers the Windows 10 operating system, Azure cloud services, Outlook email, Office 365 security, Microsoft Teams, Skype, OneDrive, Surface computers, Xbox gaming platforms, LinkedIn job market services and is in the process of acquiring Activision gaming software. All the company's divisions are experiencing strong growth.
2022 revenues are forecast to grow by 18% to $199 billion from $168 billion in 2021, and for earnings to come in around $9.34 per share compared to $8.05 for 2021 according to the consensus of 26 analysts compiled by www.yahoofinance.com...
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CURRENT TRADING LANDSCAPE The bond market is already doing much of the heavy lifting for the Fed as the yield on the 10-year Treasury rises above 2.4%, sending 30-year mortgage rates to the 4.5% range and having a dampening effect on the pace of new home buying and refinancing activity.
The $SPY closed higher 1.5%, at $450, above the 50 and 200 DMA. The value/reflationary ($VTV) closed higher 1.0%, at $148, at the February highs. The technology sector ($QQQ) closed higher 2.2%, at $360, between the 50 DMA and the 200 DMA.
The $DXY closed higher, near the $98, at the June 2020 high. The $TLT closed lower 0.8% and near the 2020 lows. The ten-year yield closed lower at 2.3%. The $VIX closed lower near the 23 level.
The $SPY short-term support level is at $440 (key long-term support) followed by $430. The SPY overhead resistance is at $460 and then $470...
SECTOR SPOTLIGHT
The Technology Select Sector SPDR ETF (XLK) is an excellent proxy for the tech sector and with a basket of leading stocks that capture the initial attention of investors when they want to get back into the market. The top ten stocks make up about 67% of total assets.
As traders have taken a fresh interest in the tech sector, our AI platform is a huge asset for determining whether the initial move higher can build on itself or whether this is just an oversold bounce that should be sold into. When we apply our AI-driven Forecast Toolbox to XLK, we get a Model Grade "B" rating with a Predicted Resistance price target of $179.23, which implies a solid advance for the share from their current price of $158. This is the kind of price confirmation traders need to stay with a trend... Join Our Discord Community
Participate in our Free Live Trading Room Sessions every Monday and Wednesday at 8:15 am cst.
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 Market Analysis 3-24-22 To effectively trade in today's rapidly moving equity markets, active day traders and swing traders must stay ahead of market changes due to inflation, global uncertainty, politics, as well as innovations and technological changes used by hedge fund traders and proprietary trading firms. With traders like you in mind, we designed this intensive roundtable where you will deepen your understanding of all aspects of stock and options trading in today's changing market.
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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