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December 18th, 2022 | Issue 161 |
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It was another pivotal week in economic reporting with CPI data, retail sales, the import price index, as well as the latest Federal Reserve policy update. Wednesday saw the conclusion of the two-day Federal Open Market Committee meeting in which the Fed snapped its streak of 75 basis point hikes and instead opted for a 50 basis point hike. Still, pessimism grew large following comments from Fed Chair Powell, as the Fed's hawkish tone indicated additional exaggerated hikes and growing concerns over a recession. The news-heavy week had me parsing through the data and searching online for the latest results as markets flipped throughout the week. Just on Wednesday, shares opened higher only to lower significantly following the hawkish Fed tone. With this in mind, I began to wonder how quickly, and if, YellowTunnel's reputation had changed. About a month ago, a scam-based review slandered my platform by illegitimate online "phishers" looking to profit where they can. Choosing the trading industry, one particular scammer conjured up a baseless overview of YellowTunnel. To this, we quickly responded at YellowTunnel with a self-audit, reviewing our own platform and tools to improve reputation, increase transparency, and improve trust. While I have no doubt our actual subscribers trust us, I do want to squash any "is yellowtunnel.com legit" discourse that may influence non-members via the previous erroneous review. So once more, I looked into our online reputation and decided to break down one section of YellowTunnel I believe lacks genuine online reviews and presence: Dynamic Power Trader... Click Here To Read More>>> |
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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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As we've recently seen, the oversold market was quick to sell off upon any additional bad news. Not only were the latest economic reports met poorly, they indicated a larger problem in the coming year and even in the coming final weeks of 2022. As shares sell off and respond to these unfortunate reports while we head into a relatively quiet section of 2022, I am banking on banks seeing exaggerated pressure and, specifically, one symbol bottoming out. |
Among the leading components of XLF, Wells Fargo & Co. (WFC) is displaying signs of vulnerability. Wells Fargo underwent a significant transformation guided by its new CEO Charles Scharf who had previously worked as the CEO of Visa and Bank of New York. After being chosen to fix the company's reputation, which was damaged due to scandals stemming from customers being sold unauthorized products, Mr. Scharf has quickly made his mark in transforming Wells Fargo for the better. Let's break down the A.I. forecast of WFC and see if my models also show a profitable spot to short Wells Fargo... |
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Our Christmas $uper sale is ON: Save $Thousands on Platinum Power Trader's stock picks and trading strategies! Click below to take advantage of our Christmas 3-Extra Months PlUS $100-Off $uper $ale: |
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You get access to: There are no limits on your membership to YellowTunnel Platinum Power Trader. For just one single membership fee, you'll get unlimited access to everything YellowTunnel offers, including: |
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- Aggressive Power Trader
- Weekly Power Trader
- Earnings Power Trader
- Dynamic Power Trader
- Profit Accelerator Trader
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That means the Platinum Power Trader is your ticket to: |
- All the trade recommendations that come with each trading service combined… including real-time trade alerts
- Every watch list is packed with trades that I'm watching closely across all 5 services.
- Weekly participation in my Strategy Round Table, where you will get live stock and option picks that you can choose to trade right away.
- Weekly Market Plan videos to keep you on top of the latest news and developments on Wall Street
- My Power Trading & Markets Weekly Newsletter — provides commentary on market events and trading education.
- My complete training library includes Trend Analysis Videos, Trading Discipline Videos, my comprehensive database of resources showing you the algorithm is making its picks, and past training sessions from other services
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…and on top of all of that, exclusive access to my Live Trading Room every trading day. |
That's why I developed Platinum Power Trader. Don't miss out on this end-of-year Christmas $uper $ale… |
(A portion of Yellow Tunnel sales will go to directly help the Ukrainian people) |
CURRENT TRADING LANDSCAPE |
On Friday, stocks took another dip as investors worried that more stringent central bank policy and an impending recession could be on the horizon. This has been ongoing since the Fed announced its latest policy update on Wednesday, triggering a selloff to end the week - with all three major U.S. indices booking weekly losses. This, however, was not how the week started. To open up a week of inflationary news and central bank activity, U.S. indices traded confidently as investors maintained their optimism amid the market movements. After its brief fall the prior week, stocks on Monday skyrocketed in expectation of imminent inflation data and Federal Reserve moves that could shape economic trends for the remainder of 2022. As discourse soured, stocks began to feel pressure Tuesday but held onto gains. Tuesday's release of Consumer-Price Index data indicated that prices rose by 7.1% year-over-year in November — a notable decrease from the 9% peak experienced this past summer. Following the disclosure that inflation data was lower than anticipated, the stock market experienced a slight upsurge; still, all three key indices finished below their daily peaks. The report failed to meet expectations of 7.3% and decreased from October's surge of 7.7%. Excluding food and energy prices, the core CPI rose 6%, slightly down from October's 6.3%. Wednesday started off with the stock market trading slightly higher, but following the Federal Reserve's declaration to up interest rates by 0.5%, stocks quickly tumbled and closed at their lowest point of the day. This snaps four successive increases of three-quarters percentage points each, this latest raise appears more moderate than before. With the Federal Reserve's "dot plot" projections suggesting a near-term interest rate rise, economists anticipate that by 2023, the federal fund rates will exceed 5%. This relatively high level is expected to remain for an extended period. The Federal Reserve is keenly aware of the potential to further depress economic demand and inflation through higher rates. This being said, they have made it clear that they are seeking only a mild recession rather than an extreme one. The dot plots, however, show that if inflation continues to remain above 2%, the Federal Reserve will struggle to achieve its objectives. Not only did the Federal Reserve make a rate increase, but other central banks have done so as well. On Thursday, both the Bank of England and European Central Bank increased their short-term rates by half a percent - showing they are prepared to continue this trend in the near future. Back in the U.S., retail sales plummeted by 0.6% in November, which is worse than expected; however, markets are quite content with this decline because it indicates that inflation could possibly drop and prompt a shift from the Fed's approach. Still, the stock market continued to sell off on Thursday in response to the Federal Reserve's monetary policy decision. The Fed's new measures could lead to a more rapid rise in interest rates and create greater financial difficulty for investors, leaving them wary about their future investments. Adding to the U.S. markets' stress was a lower-than-expected jobless claims figure of 211,000 - which ran contrary to analysts' predictions of 230,000. Consequently, as long as indicators point to a labor market recovery and inflation decreases gradually, the Fed will not hurry with switching its policy. Despite the instability of the market, a glimmer of optimism emerged. Bond yields remained largely unchanged in light of Federal Reserve Chairman Jerome Powell's speech as U.S. two-year Treasury yield closed at 4.245% on Thursday and stayed comparable to Wednesday's close rate – both lower than its multi-year peak at just over 4.7%. This steady trend offers hope for investors that bond prices will remain stable despite uncertain times ahead. With the week coming to a close, past the midway point of December, markets plummeted due to several factors such as hawkish remarks from the Federal Reserve, unexpectedly high inflation rates, renewed recession fears, unsatisfactory retail figures, and low joblessness. All signs are now pointing to a recession... |
Following this week's interest rate hike, market-wide pressure has subdued the holiday rally for the time being. With the next earnings season some weeks away, there is one type of trade I will be looking to execute in the coming. Specifically, I am looking at one sector and one symbol to short if the current market trend and my latest forecast uphold. As the latest batch of data has shown us, these markets can flip on a dime. With the Fed moving towards a more hawkish stance than what was projected, one sector is set to open for potential gains with a specific type of trade. |
Financial Select Sector SPDR (XLF) is currently trading at $33 and is my go-to financial sector ETF. XLF is a favored tool among traders who wish to trade the sector while simultaneously mitigating individual stock risk. With a 52-week range of $29-41, XLF currently sits just above its defined low. Although shares of XLF have trended down over the past month, zooming out to a 6-month window, we actually see XLF has booked some gains in that time frame. With this in mind, it appears XLF has not truly bottomed out yet. As stated above, the recession appears unavoidable and possibly imminent. While I still am gathering my thoughts and forecast data to project when such a recession could occur, what I do already see is that major banks and the financial sector are in trouble. Therefore, shorting XLF is something I will be looking at accomplishing in the coming sessions. Should selloffs continue XLF is in a position to build new lows, but let's double-check with my A.I. toolset... |
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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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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 for 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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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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