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January 16th, 2023 | Issue 165 |
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Q4 Earnings season has officially kicked off, with major banks reporting their results Friday. This comes on the heels of a relatively positive week, in which major U.S. indices climbed higher off the hope and eventual results of the latest inflation data. With now six straight months of cooling inflation, a Fed that has signaled its intention to curb hikes when appropriate, and the latest earnings season upon us, it appears the bear market narrative has temporarily shifted. Still, as outlined last week, I believe 2023 will predominantly be a bear market and one in which active short-term investing succeeds far better than passive. With that in mind, I'd like to review and highlight one of my favorite services to use during times like these: Earnings Power Trader. YellowTunnel Trading Tool Evaluation At YellowTunnel, our software-based trading tools allow users to research their own trades as well as review our latest recommendations. With Earnings Power Trader, my intent was to create a system that would utilize and analyze earnings trends leading up to, through, and after earnings season in order to book gains that are time-specific. And that is exactly what I did. My A.I. model compiles up to 10 best trades, which are then sorted into selective time frames and referenced with a list of companies set to release earnings soon before being scanned for the best opportunities. I help sort the data and initiate buy alerts when appropriate. The primary objective of Earnings Power Trader, my earnings-based online trading tool, is to take advantage of elevated and implied volatility during earnings season. This brings its fair share of market shake-ups, as companies are evaluated while the market is analyzed through that lens. With an uptick in volatility traditionally found around changing times, as well as the current recession-focused and inflation-watching state of the market, Earnings Power Trader provides a leg up for most retail investors. We aim to help all levels of traders, and this system does just that. One key attribute of EPT I would like to discuss is its ability to hedge stock and use an iron condor. During my weekly webinars, I discuss various hedging strategies as appropriate. Letting you directly into my trading portfolio, I share with full transparency exactly how I approach the market. This strategy is of additional benefit during earnings season as we could use the implied volatility to our advantage. An iron condor is an investment strategy that groups puts (long and short) with calls (also long and short), all having the same expiration date. This tactic provides maximum return when the underlying asset falls in between its middle strike prices at expiration - aiming to exploit a symbol's volatility. The iron condor strategy yields exceptional returns when the underlying asset remains stagnant; however, it can be customized with either a bullish or bearish outlook. Overall, the introduction to iron condor trades makes it appear that this type of strategy is the only one used in EPT. Need to describe some of the other trades and the % of an iron condor. In addition, if they don't feel comfortable with iron condors, they can still benefit. Likewise, an additional benefit of iron condors lies in its safety; profits from this trade are limited to the premium received, while losses are capped as the difference between the call and put strikes minus the net premiums. Using this strategy falls in line with the YellowTunnel service mantra of applying both fundamental trading strategy and guidance along with a psych angle. Knowing earnings will yield volatility but perhaps not as prognosticate offers us the opportunity to move in on spots we believe we have an edge on. And EPT does just that by highlighting these companies! The three key attributes Earnings Power Trader provides to the everyday trader include: - Weekly participation in my Strategy Round Table, where you will get live stock and option picks that you can profit from right away.
- Roughly 10 trade recommendations per day - using the same algorithms and my research, delivering an average % per trade!
- Weekly Market Plan videos to keep you on top of the latest news and developments.
To get a good look into all the happenings at YellowTunnel, and the strategies we are currently implying, I recommend joining us for our upcoming webinar this week, Thursday, January 19th, at 1 PM ET:
Best 2023 Inflation/Recession Resistant Earnings Season Trades 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 also 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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TRADE IDEA OF THE WEEK CHINA'S MAGICAL TRADE |
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Alibaba Group Holding Ltd ADR (BABA) is one of its largest holdings in FXI and is one of China's most well-known and important companies. BABA is the undisputed leader in providing internet retail services in China and has a substantial business-to-business presence. With cloud computing, digital media, and platforms tailored to support start-up businesses by nurturing their innovations, it comes as no surprise why many refer to them as 'the Amazon of China.' |
Currently trading at $115.45, BABA's 52-week sits at $58-$136. This symbol is offering an unprecedented chance to purchase a top-name stock at a slight discount with massive room for growth as China's economy resumes post-COVID restrictions, making this the perfect opportunity for the start of 2023! The Stock Forecast Toolbox predicts that BABA will experience a positive trend in the next 10 days, with strong and consistent gains. The Model Grade "B" provides me with confidence in the A.I. forecast and the strong vector trend displayed in its predicted data offers me a strong indication to buy in. All this gives me confidence in 'The Amazon of China' going forward! |
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BEST 2023 INFLATION/RECESSION-RESISTANT EARNINGS SEASON TRADES |
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WHEN: Thursday, January 19th |
| THE TIME: 1:00 PM Eastern Time (12:00 PM Central) |
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TOPIC: HOW TO RACK UP TO 36% GAINS OVERNIGHT FROM
Inflation/Recession Resistant Earnings Season Trades |
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Right now is the best time to pick through the trades that are expected to soar. Don't miss this opportunity. Click Here to join. A prompt reply will save you a spot. |
I expect upcoming events to be challenging for most traders. But you're my followers, and I want you to come out ahead during this earnings season inflation/recession frenzy. The next 30 days look like the "filet mignon" of the entire trading year. Many traders expect an earnings recession this quarter. Most companies are expected to reflect earnings eaten away from inflation. But there will be many surprises. Don't miss this opportunity to cash in and feast on stocks the market has overlooked. Just click on the following link below to register right now for my "How to Rack-UpTo 36% Overnight Gains From Inflation/Recession Resistant Earnings Season Trades" Webinar at 1 p.m. ET on January 19th… |
CURRENT TRADING LANDSCAPE |
As of Friday, the 5-day chart shows the $SPY was trading 1.82% higher, near $397. Major U.S. indices edged higher by week's end with the latest CPI data providing support. The volatility index steadily declined throughout the week, trading near $18 level on Friday. |
This week's most influential market mover was the CPI data release - as well as the beginning of the latest earnings season with $JPM, $TSM, and $DAL data. Currently, the SPY is encountering its overhead resistance levels of $395 and then $402. Its support sits below $385 and then a further level down to $375. In the coming weeks, I anticipate that the market will continue to hit new lows. I would be BEARISH ON THE MARKET at this time and encourage readers to hedge their positions. See $SPY Seasonal Chart: |
To open the week, stocks surged on Monday in anticipation of this week's inflation statistics and corporate earnings reports. This did not last long, however, as by day's end, stocks saw a bit of a pullback, reducing their prior rally from Friday. Additionally, Treasury bonds are high and yields have decreased, not to mention rising oil prices due to China's relaxing of border control restrictions amidst the Coronavirus pandemic. All eyes this week were on U.S. inflation data and fourth-quarter earnings season, officially kicking off with major banks releasing their reports on Friday. Although some Federal officials have expressed worries that the economy could suffer further harm, these fears were somewhat alleviated on Tuesday when the Central Bank Chairman's speech provided few specifics and left stockholders hoping for a brighter future before Thursday's Consumer Price Index report. When CPI data was released on Thursday, markets received a welcome line of support. All three major U.S. indices rose following the release of the latest Consumer Price Index report, which showed signs of slowing inflation and raised expectations for a change in course from the Federal Reserve. Sentiment improved as investors began envisioning a Fed that would cease rate hikes for the time being. According to the consumer-price index, prices in December came in at 6.5% more than a year ago—with core CPI (excluding food and energy costs) at 5.7%. This is in line with forecasts that inflation should be moderating and lower than the November reading of 7.1%. For six consecutive months, we have observed a decline in inflation, which supports and aligns with the Fed's goal to reach 2% target inflation. Moreover, the bond market is suggesting that the Federal Reserve's rate-raising trend may be coming to a close. The two-year Treasury yield had reached 4.2%, but when the results were reported it quickly plummeted to 4.120%. Similarly, 10-year yields dropped from 3.55% down to a mere 3.425%. These figures are an indication of market expectations about future federal funds rates and demonstrate how drastically investors reacted when faced with new economic information. This brings us to Friday the 13th. Five major financial institutions—JPMorgan Chase (JPM), Bank of America (BAC), Citigroup (C), Wells Fargo (WFC), and BlackRock (BLK)—released their Q4 earnings, essentially marking the start of the earnings season. As major banks traditionally kick off earnings season, they provide insight into where the market is heading and how other earnings results could potentially turn out. JPMorgan Chase and Bank America lead the way, with both earnings topping estimates and shares soaring. Along with quantitative results, investors looked to additional qualitative clues as to how companies and the economy were doing. With some contrasting views, it appears an upbeat view is present, albeit with some hesitation regarding geopolitical factors and further examination of Fed action and inflation levels. Monday will see markets closed in observance of MLK Day while Q4 earnings season officially will be in full swing with hundreds of reports due as well as several major names. Marquee reports next week include Goldman Sachs, United Airlines, Charles Schwab, Netflix, American Airlines, and Procter & Gamble. Additionally, look out for the latest Beige Book during the shortened trade week... |
iShares China Large Cap ETF (FXI) carefully monitors a market-cap-weighted index of the 50 most significant Chinese stocks that are actively traded on the Hong Kong Stock Exchange and currently trades at $31.81. Trading near the middle of its 52-week range of $20-$39, the symbol had slightly sold off Thursday after moving higher throughout the week, before recapturing gains on Friday. |
Despite the potential of a bear market this year, there are still chances to take advantage of and book profits. I'm looking closely at this symbol with anticipation for possible rallies in the near future. Because China recently altered their COVID policy by opening its borders again, Chinese-based businesses may exceed all expectations and grow throughout 2023! |
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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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