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. April 3rd, 2022 | Issue 124
Hello Traders, Markets have demonstrated that the bullish camp isn't ready to throw in the towel, even though inflation, higher interest rates, soaring commodity prices, a hawkish Fed and geopolitical risks are at work against the long-term primary uptrend.
It's a bullish tell when the market can rally against these stiff headwinds as capital flows out of bonds need to go somewhere, and with cash-generating a negative return in absolute terms, money is finding its way into equities, which historically are a good inflation hedge.
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 31st. 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 IDRV ETF that matter most to the market, Tesla Inc. (TSLA) is still king of the road. CEO Elon Musk is a mile ahead of the competition, already offering versions of self-driving EVs with longer range and shorter charging times than the competition that is desperately trying to catch up.
Tesla sold 936,000 vehicles in 2021, up 87% from its 2020 sales. Tesla sold 308,600 in the final quarter of 2021, exceeding the expectations of analysts. Tesla sold 911,208 Model 3 and Model Y vehicles as well as 24,964 vehicles of its luxury S and X models. On a consensus basis, Wall Street is forecasting Tesla to earn $10 a share in 2022, up from the previous estimate of $8.40 a share three months ago...
(Advertisement) Earnings Season starts Wednesday, April 13th and the first to announce its earnings is JP Morgan. The last time we traded JPM on November 29th we had a 199% return on risk.
Let me repeat that, we had a 199%** return!
That's a pretty good return after holding the position for only 6 and 7 days! Be prepared: JP Morgan (JPM) is scheduled to announce its earnings on April 13th.
This is my favorite time of year!
CURRENT TRADING LANDSCAPE As of Thursday's close, the $SPY closed lower 1.5%, at $451, above the 50 DMA and the 200 DMA. The value/reflationary ($VTV) closed lower 1.5%, at $147, below the February highs. The technology sector ($QQQ) closed lower 1.24%, at $362, between the 50 DMA and the 200 DMA.
The $DXY closed higher, near the $98.5 level, at the June 2020 high. The $TLT closed higher 0.2%, at $132, and below the 2020 lows. The ten-year yield closed lower at 2.33%. The $VIX closed higher near the 21 levels, right above the historical average.
The $SPY short-term support level is at $451, followed by $440. The SPY overhead resistance is at $465 and then $470.
Assuming the geopolitical risks in Ukraine have reached the status quo, it is reasonable to assume that the $SPY February low is set and the pattern of higher highs and higher lows will continue in the next two to six weeks. The market has reached extreme overbought levels and is due for a 2-5% pullback in the next 10 days.
I would be a buyer of the low beta stocks into the pullbacks and have a market BULLISH portfolio at this time...
SECTOR SPOTLIGHT Hardly a day in the market goes by where another headline crosses the tape about something exciting happening in the electric vehicle industry. The pace of adoption of EVs and the future of autonomous driving capabilities is truly one of the most promising investment themes available to traders, given the amount of attention generated from the sector.
There is an abundance of opportunities in multiple car makers, charging station operators, semiconductor and commodity stocks that all have great potential to reward traders, while at the same time, much of the smart money that trades in this space will trade the EV and self-driving ETFs that reduce risk and still afford plenty of volatility to profit from the sector.
One such ETF that is a preferred trading vehicle is the iShares Self-Driving EV & Tech ETF (IDRV). With $590 million in assets under management invested in 122 holdings, this ETF has all the heavyweight names that stand to rule the self-driving industry as it matures. The top ten positions account for about 44% of total assets... 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 3-31-22 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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