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October 16th, 2022 | Issue 152 |
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As the latest earnings season kicked off, markets began Q4 with mixed messages throughout. Hope over an easing Fed approach offered some relief earlier in the month which was later squashed by the CPI and employment data. Furthermore, last month's Federal Open Market Committee meeting minutes, which were just released, buoyed the hope that we could see another rally of the kind we just saw in July/August. Investors had hoped the Fed could pivot, but the latest data countered that notion and only added to the understanding the Fed will continue to hike rates. Mixed messages can often be confusing but are not a total deterrent to success. Just this week, I was reminded of that with my own daughter. Playing volleyball from a young age, her teams would often focus on fundamentals and good teamwork - more concerned with how you participated than what the result was. The older she got, the more this mentality seemed to take a backseat, both with the coaches and players. Still, at a relatively young age, her middle school gym reads, "It's not about winning, it's about participation." A good-natured idea - if we were not losing every single game. Yes, every game. What I found even odder this year: for the first time, their coach began stressing about winning. Working players hard in practice and only letting those who serve well serve at all. Not allowing players to show up late to practice and the like. All of this reminded me of trainers and teachers I met growing up in the Soviet Union before it became Ukraine. Hearing her coach repeatedly blow the whistle and demand perfection transported me right back to the USSR. Having since raised kids in the U.S., I do not know which side of the "ocean" I stand on in regard to how coaches should motivate players. I wanted to shield my child from the harshness the coach provided and at the same time, I wanted the losing, which also caused her pain, to stop. Ultimately, I realized it is not a one size fits all approach. Some kids prosper being handled with "padded gloves," and some kids require that fire to be pushed to the next level. As I sat there in her latest game, I looked at the coach on the sideline screaming his head off. I looked right above the kids playing and saw the participation sign hanging in the gym. Mixed messages all around. And well, the team won. Kids were elated: jumping up and down, hugging their coach, almost coming to tears of joy. The struggle they endured, repeated failures, all the ups, all the downs - was finally worth it. And yes, it was just one regular season game, but the team finally felt the reward for all of their efforts. So in the end, I do not know which approach was correct, and in a way, both messages could apply. Winning the volleyball game did not define these kids but putting hard effort toward a shared goal brought them joy. Sometimes, two things can be true, and sometimes that's just the way it's got to be. That's exactly what we're seeing in the market. Unemployment remains low, and inflation remains high. Hope over a Fed changing course that is met with data to counter it. The Fed is exhausting all of its options, and yet recession seems imminent. Confusing, to say the least, but something we must navigate through in order to make profits and, as previously stated, should not be a deterrent to success. Yes, that may be confusing, but one thing I always recommend to elevate the confusion is never trading alone. Finding a trading community to bounce ideas off of and find new ways to better your portfolio. That is why I recommend being part of our YellowTunnel trading community, where you can discuss and dissect with others. This is exactly what we did in my latest Strategy Roundtable, which we hold weekly on YellowTunnel. I recommend checking out our latest Roundtable webinar in its entirety below: |
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How To Trade a Bear Market Strategy Roundtable With the unpredictable nature of the market and the uncertainty ahead of us, I can't emphasize enough how vital it is for our readers and members of the Yellow Tunnel community to keep referring to our Live Trading Room so as to maintain a close tie of how our I and my AI platform is navigating us in and out of select trades. It's FREE and I highly encourage everyone to sign up to the Live Trading Room and keep checking in throughout the trading day. Every Monday and Wednesday, I highlight our best strategies and potential trading setups via the DISCORD server. It's the future of bringing together a trading community's total services, educational products, live chat venues, support, news, how-to tutorials, webinars, live-trading demonstrations, and tons of market analysis. It is incredibly interactive and full of crucial and timely information. Just go to: |
https://discord.gg/YjBfkaqGGu I also want to emphasize to traders how vital a stop-loss discipline is to winning and being successful in an unforgiving market. We employ specific stop-loss instructions with every trade. The buy and sell programs controlled by high-frequency related algorithms can create great profits or cause sudden losses, so it is imperative to maintain an element of controlling risk with each trade. |
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| Vlad Karpel
YellowTunnel and Tradespoon Founder |
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P.S. Click here for access to the Power Trading Live Strategy Roundtable Recorded every Thursday. P.P.S. Join our Discord Community to participate in our Free Live Market Volatility Trading Room Session every Monday and Wednesday at 8:15 am CST. Click Here To Join |
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Lennar Corporation (LEN) is one of the premier U.S. home construction companies. As the second largest home builder in the U.SLEN has brought in over $27 billion in revenue last as of last year and provides its services throughout the U.S. with major locations on both coasts - as well as marquee locations in Florida, Texas, and Illinois. |
LEN's market cap tops $20 billion and is currently trading near $73-74. The 52-Week range for the symbol shows $64-$117, indicating shares are closer to their lows than highs - offering an impressive lane for the upside. As the market remains oversold, and LEN's shares have recently pulled back, I will be looking to invest in this symbol with its fundamentals pointing towards success within potential rallies we presume the market could still stage. Earnings and midterms should offer the market, and this symbol, some support, but let's make sure our A.I. arsenal agrees... |
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Earnings Season is here and Freeport-McMoran (FCX) will announce its earnings this Thursday. |
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The last time we traded FCX during Earnings Season, we had a 150% return on risk. Let me repeat that, we had a 150% return! That's a pretty good return after holding the position for only 9 days. |
Be prepared: Freeport-McMoran (FCX)is scheduled to announce its earnings on October 20th. This is my favorite time of year! Vlad Karpel Founder and Chief Investment Officer |
(A portion of Yellow Tunnel sales will go to directly help the Ukrainian people) |
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CURRENT TRADING LANDSCAPE |
As of Friday, the 5-day chart shows the $SPY was trading 1.61% lower, near $357 - erasing Thursday's gains. The S&P 500 was down over 2% on Friday, with the Nasdaq and Dow trading significantly lower as well. The $VIX saw an up-and-down week, trading as high as $34 before edging, settling around $32 on Friday. Looking at the above levels, I believe the bottoming process will continue in the current period. Inflation remains at high levels, with rent, food, airline tickets, and gas all rising above estimates. The market remains oversold and could stage a couple of rallies after we just saw it break below the June/July lows. As long as SPY remains above its recent lows, the market will continue the bottoming process... |
As earnings season begins, the current bottoming process looks to highlight strong sectors and illuminate sectors feeling the biggest impact of inflation. The market appears to be oversold and while that does decrease the areas in which shares can prosper, there is still room for profit. This week, I'll be highlighting one sector and specific ETF I believe is showing the signals to withstand the current shaky economic standings. SPDR S&P Homebuilders ETF (XHB) is my go-to homebuilders ETF. With over $850 million in assets managed. This ETF offers exposure to the home building industry, home furnishing, home improvement retail, and household appliance and sub-industries of the like. Currently trading near the $54-55 range, this ETF is trading right above its 52-week low of $51.23 and offers plenty of room for the upside. As recently as August, shares traded near $65 only to drop off after the latest selloff. With the earnings season at the forefront of economic sentiment and midterm elections about a month away, there should be enough support in the market to prop some sectors despite the current inflation pressure and upcoming recession fear. The 52-week high of the XHB nearly hit $87 in the December-January time frame, which we are now approaching once more. While I see there is an opportunity for the upside, let's double-check with my A.I. toolset... |
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Market Volatility LIVE Trading Room Sessions Join Our Discord Community Every Monday and Wednesday at 8:15 am CST. Click Here To Join |
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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. |
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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. |
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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 the 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. If you want to unsubscribe from all or some of our emails please click this link. |
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