| 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 10rd, 2022 | Issue 125
Hello Traders, More hand wringing in the bond market as Treasury yields continue to push higher in anticipation of inflation, forcing the Fed's hand to hike the Fed Funds Rate more than initially anticipated. Oil and commodity prices remain stubbornly high and the war in Ukraine is looking more protracted, which in turn keeps negative sentiment overhanging the stock market save for a few select sectors.
There is a counterintuitive trade happening. On the one hand, energy, fertilizer, soft and hard commodities, REITs and insurance stocks are trading higher with interest rates and inflations, while consumer staples, utilities and healthcare are also trading higher on the notion of a hard landing scenario later this year due to much tighter Fed policy.
We're just a few days away from first-quarter earnings season kicking off and this time around, it feels like traders are selling the rumor (soft earnings and weak guidance) that might give way to buying the news (earnings meet forecast and guidance is OK). It's a hard call because of the algorithm-related buy-and-sell programs that dominate daily volume and key off many headlines.
A solid earnings season is just what this market needs to break the bearish camp's hold on sentiment. Yes, bond yields have come up half of one percent and 30-yr mortgage rates are now above 5%, but I seriously doubt 2.5% borrowing rates for Microsoft Corp. (MSFT) are going to impact the company's business model that warrants the stock trading down 20% from its high. 
To great returns,  Vlad Karpel P.S. Please see below for access to the Power Trading Live Strategy Roundtable presentation I recorded on Thursday, April 7th. 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 From our perspective, the stock of the week is Twitter Inc. (TWTR), following the news that Elon Musk filed a 13-D active stake in the company. Mr. Musk paid $2.9 billion to acquire a 9.2% stake in the company; this is arguably the most widely used medium by high-profile people that carry a lot of influence around the globe.
Musk brings his brand and brandishing style to a network that hardly embraces his new role as a Class II Director, where he can't have more than a 14.9% stake in the company. But clearly, changes for Twitter are coming and it will be interesting to see how he influences the C-suite at Twitter going forward.
Shares of TWTR hit a high of $80 back in early 2021, bottomed out at $31.30 in February of this year, worked back up to $30 and spiked to $54 on the Musk headline. As of Friday, the stock is consolidating in the low $46 range where it is now looking attractive depending on our AI signals. From the short-term chart below, the stock should find technical support right about where it currently trades...
(Advertisement) Come Fly With Me: April 13th. Earnings Season starts Wednesday, and the first to announce its earnings is Delta Air Lines. We previously traded Delta on July 2nd; we had a 28% return on risk.
Let me repeat that, we had a 28%** return!
That's a pretty good return after holding the position for only 1 day!  Be prepared: Delta Air Lines (DAL) is scheduled to announce its earnings on April 13th.
This is my favorite time of year!
CURRENT TRADING LANDSCAPE  As noted, the market has a gray cloud over it, given the most important and heavily weighted sectors to the major indexes are pulling back. At present, there is highly concentrated market leadership, and that's what has traders nervous. At the same time, the $SPY is holding its ground while the rolling correction runs its course.
As of this past Thursday, the $SPY closed higher 0.5%, at $448, below the key short-term support, but here again, it is dealing with the rate shock and the negative news out of Ukraine pretty well, all things considered.
The value/reflationary ($VTV) closed higher 0.5%, at $148, below the February highs. The technology sector ($QQQ) closed higher 0.2%, at $354, between the 50 DMA and the 200 DMA.
The $DXY closed higher, near the $100 level, at the June 2020 high. The $TLT closed lower 0.8%, at $127, and below the 2020 lows...
SECTOR SPOTLIGHT  As market sentiment has turned its attention toward defensive sectors as a way to insulate capital in a slowing economy, history is on the side of the telecommunications sector as being a go-to space for traders seeking safe-haven stocks to trade and their corresponding options.
One such ETF that is a preferred trading vehicle is the iShares U.S. Telecommunications ETF (IYZ). With $497 million in assets under management invested in 21 holdings, this ETF is a concentrated portfolio of the leading names in the telecom space. The top ten positions account for about 70% of total assets. The fund has had an average daily trading volume of 744K for the past 30 days... 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 4-7-22 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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