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December 11th, 2022 | Issue 160 |
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This week, markets began to dip in reaction to an alarmingly high services report from the U.S., causing concerns that inflation and Federal action could be imminent. After the unveiling of Thursday's jobless figures, markets began to rebound. But that momentum quickly dissipated when producer price inflation information was revealed on Friday, with all three major U.S. indices turning red. In the wake of several major financial releases this week, attention now shifts to the impending Federal Open Market Committee meeting taking place next week. As November came to an end last week, my book club wrapped up and reviewed another book - The Master and Margarita. A critical work in modern Russian literature, though some complained far too long, Mikhail Bulgakov fearlessly reinterprets the tales of Faust and Pontius Pilate with his widely-considered masterpiece. While I do not align with those bad reviews and complaints about the novel, I do admit it is incredibly dense. The novel vividly and truthfully depicts Soviet life in the 1930s, although with an added supernatural element in it, still making it so accurate that its uncensored version was not released until the 1960s - several decades after its completion. And its insights are still relevant today. Disguised as a human, the devil strides into Moscow, surrounded by an ominous team of followers - consisting of a powerful witch and an enormous talking, vodka-drinking black cat. The mysterious visitors swiftly wreak chaos in a city that is adamant about denying both the existence of God and Satan. But, these strangers also bring comfort to two forlorn Muscovites: one is an author who faces ridicule for daringly writing a book concerning Christ and Pontius Pilate, while another is Margarita, who loves the Master so dearly she would gladly take her life and go to hell for him. The novel essentially recounts the story of Pontius and Jesus while also providing a layered interpretation of Stalin-era soviet life. Many believe that Bulgakov was a visionary who knew his book would never be published, and even more think he had an unexplainable influence over Stalin. This power over the dictator kept him safe from prosecution, which other writers were not so lucky to avoid. It was known that the ruler of Russia at that time praised human courage in certain forms, preferably metaphoric, which fueled one theory: the novel was a message to Stalin. Although Stalin is portrayed as Satan, he holds a certain redeeming quality in that he typically deals with characters who example negative traits and blindly praise Satan's offers and deceptions. The book punishes and persecutes liars and cheaters while strong-willed characters like the Master and Margarita are saved and allowed to find peace due to the strength of their character and internal drive. Why am I telling you this? Beyond the benefits of reading and recommending a great novel, I am recounting Bulgakov's tale to highlight the benefits of maintaining strong character and the drawbacks of rigid, tyrannical-like beliefs. Just this year, we started with an overwhelming sense of constant growth that flipped by year's end to an inevitable recession. Now, as we head into 2023, neither recession nor growth appears imminent, but the moves made within your portfolio are. Being succumbed to the latest winds of market discourse can cost even the most profitable traders. Do not assume certain market conditions will exist just because they have and do not align yourself with just one market outlook, being bearish or bullish. It is key to hold certain tenets while at the same time being mercurial enough to adjust toward any market landscape shifts. With interest rates and long-term yields in focus, market perception this year was all over the map. Even I interacted with these market trends as they came and found myself seeing both potential growth and potential recession at times. So while reading and then discussing this novel with my book club, in the back of my mind, I started to draw market connections. In my view, the book's message -- when examined through a market lens -- was that if I believe a recession is near and inflation reaches its peak before subsequently dropping, then it stands to reason that the Federal Reserve will act quickly. This could result in minimal damage to companies' earnings and abruptly jumpstart the market rally earlier than anticipated. Unlike the characters in the book, I'm determined to not to lose my head and continually keep an open mind that allows for both sides of any argument. Trading is a calculated game based on your opinion and risk tolerance--which means there's no such thing as absolute certainty. Despite this, it can be incredibly rewarding for those who are willing to take risks or stay rooted in their core beliefs. The ability to wield both is something I pride myself in. And when I am asked to review YellowTunnel or I get asked something like "does YellowTunnel work?" I always think back to that duality: strong character and malleability. At YellowTunnel, we inform our trading with proven A.I. models and a deeper understanding of self and market psychology. Building on traditional technical indicators, my neural network is a self-learning A.I. meant to go past previously archaic and rigid models used by old finance thinkers. At YellowTunnel, our stock and ETF trend analysis comes from both my proprietary tech and years of stock market experience. Sometimes the question becomes, is YellowTunnel a TradeSpoon rebranding? And the answer is an unquestionable no. When I reviewed the retail-trader marketplace, I saw a gap in how we interacted and interpreted the market in our day-to-day trading. No one was talking about the psychological aspect of the trader. While offering unique and self-learning market forecasting A.I., at YellowTunnel, we also offer insight aimed at helping traders - at any level- with how they approached each trade, each day, and their portfolio. And that is the duality that is also praised in Bulgakov's The Master and Margarita. Maintaining the strong character to keep with a trading regimen, stop loss and target gains prices, and careful trade management is one part of the YellowTunnel equation. Being able to adjust to the various interpretations of the market, whether imminent recession or another bull run, is the other tenet I instill in YellowTunnel subscribers and Power Trading and Market readers. At YellowTunnel, we focus on not only trading-centered ideas but also non-trading opportunities that will offer our subscribers a chance to become more well-rounded and complete traders. In addition to the trading tools and ideas available on our website and during our weekly webinars, we provide other resources that can help supplement your Live Trading experience. That is precisely why I recommend being part of our YellowTunnel trading community, where you can discuss and dissect multiple trading strategies 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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| 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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In the midst of today's oversold market, I will be studying Tesla Inc. (TSLA), a leader in clean energy and automotive technology, in the following weeks. Tesla shares sold off for most of the week before rebounding on Friday with 4.31% gains. Still, the symbol is over 4% down in the last 5 days, which brings an interesting scenario. If PSQ goes as mentioned above, that puts Tesla in a spot to continue its selloff. While this is promising based on our reading of the market, before we short Tesla, let's review the symbol with my A.I. toolset. |
Looking at the 10-day Stock Forecast Toolbox predicted data, we see a reading that shows the potential for this symbol to grow and sell off - showing a certain amount of uncertainty in the symbol's performance. PSQ holds a model grade of "B" and is still trading below our predicted high level of $181.04. Still, this symbol is trading far below its 52-week high of $402 which begs the question: is Tesla primed to return to a median or retouch its annual low? This week, I'll be looking to get in on TSLA in order to short it in the coming weeks... |
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The markets have been all over the place. And with worldwide uncertainty, wars, and 'trimflation', volatility just keeps increasing. Traders are being more cautious — not knowing what will happen in the next few days (let alone next year). Me? I've made 1698 trades since the beginning of 2020 to today… and 85.10% of them have made money. |
While I'm not taking on unnecessary risks or being careless with my money, I'm still making the same trades I always have and will continue to do so throughout December and 2023. |
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(A portion of Yellow Tunnel sales will go to directly help the Ukrainian people) |
CURRENT TRADING LANDSCAPE |
This week, the U.S. stock market faced its deepest dive in almost a month as Monday's service sector report revealed higher-than-usual readings in America. Consequently, this spike may induce the Federal Reserve to take bolder steps than anticipated when combating inflationary pressures within our economy which sent markets lower to start the week. Shares then turned positive following an encouraging unemployment report which was then negated, sending markets once again into the red, after the latest Producer-Price Inflation report was released on Friday. On Monday, the Institute for Supply Management (ISM) released survey findings that showed a spectacular increase in November - to an astounding 56.5%. This remarkable surge is proof positive that our nation's economic success is continuing which, when viewed through the lens of the Fed trying to slow economic activity, was not well received. Then, on Thursday, the weekly U.S. jobs data ignited investor confidence as the number of continuing jobless-benefit claims rose to their highest level since February – an indication that could soothe the Federal Reserve's need to raise interest rates any further. As the first week of December drew to a close, unemployment benefits applications reached 230,000 - meeting expectations. Additionally, ongoing claims increased by 62 thousand to 1.67 million individuals--the highest number recorded since February 2020--suggesting that layoffs are slowly but surely rising as the economy weakens. Recently, investors have been keenly observing the U.S. labor market for signs of growth and progress. Last week, stocks took a downturn when data revealed a higher-than-expected increase in wages and an increasingly vibrant job sector. This indicated that the Federal Reserve's efforts to maintain inflation were unsuccessful, sparking fear of potential economic destabilization. Although the November jobs data revealed that average hourly wages had increased more than five percent over the past year, this success created apprehension in some market experts about potentially surpassing inflation's rate. Unfortunately, these worries indicated that beating inflation may be harder to achieve than initially forecasted. Finally, on Friday, the Labor Department released a report showing that U.S. wholesale prices had increased by 0.3% in November - mostly meeting expectations... |
With the last Federal Open Market Committee meeting of 2022 coming up and a holiday rally brewing, it appears the market is set for a nice run to end the year. Still, there are plenty of market detractors out there as inflation concerns and contradictory economic data continue to mount. Although it appears the bear market remains regardless of the holiday rally, there is one sector, after close review, I believe is primed for a pop. In times of increased and unpredictable market volatility, I take solace in investing in inverse ETFs.These symbols are formulated to short the day-to-day performance of their chosen ETFs and tend to be in higher demand during times of high market volatility. As we come to the end of 2022, I anticipate that bear market trends will reignite. Historically, tech stocks are often one of the first victims when markets descend - these major technology companies have such a great influence on setting direction for markets as a whole, making them fantastic barometers for predicting where things may be headed in the future. If the earnings return below expectations a selloff could ensue which makes one particular symbol a favorable buy from me in the coming days. |
ProShares Short QQQ (PSQ) offers a great opportunity to benefit from the current oversold bounce of the Nasdaq 100. This inverse ETF makes it simple for traders to jump in and short our Sector Spotlight security at an opportune time. Don't miss out on this chance to capitalize off of recent market strength - get started with PSQ now!
When we apply PSQ to our AI-driven Forecast Toolbox for the near term, we get a Model Grade "A" rating with a Predicted Resistance price target of $14.29 which is decently higher than where PSQ currently trades. At $13.86, PSQ is trading in the middle of its 52-week range of $10.65-$15.63...
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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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