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February 5th, 2023 | Issue 168 |
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The Fed has spoken! On Wednesday, following the Federal Reserve's announcement on interest rates, U.S. stock indices reached their highest levels in several months. The Fed's decision to raise rates by 0.25% was met with investor enthusiasm, as they saw the potential for additional rate cuts in response to current economic conditions. This news sparked a strong increase in stocks across all sectors. During the ongoing earnings season, several major companies have already reported their data, while a few others are still yet to release their results. At home, our book club has taken on a new work and one that sparked a great discussion and had me thinking about it long after we finished the book and our weekly meeting. This past week's book was Lean In: Women, Work, and the Will to Lead by Sheryl Sandberg. The book explores the ongoing challenges faced by women in the workplace, including prejudice, the lack of equal opportunities, and the ongoing struggle for feminism. One of the key themes of the book is the idea that women must "lean in" to their careers and take an active role in advocating for themselves and other women. Sandberg encourages women to be more assertive in their careers and to push for the equal opportunities they deserve. She also argues that men have an important role to play in promoting equality by advocating for women and pushing for changes to the systems that hold women back. Overall, "Lean In" is a thought-provoking and inspiring read for anyone interested in equal opportunities and the ongoing struggle for women's rights in the workplace. The Book Club discussion on this book was lively and provided much food for thought. One key takeaway from our discussion of "Lean In" is that even highly successful women often feel the need to hide their achievements and "dumb down" in order to avoid being perceived as threatening to men in corporate America. This phenomenon hit close to home as I began to wonder if this was true in my own life. I asked my wife, who holds a law degree, this and she revealed that in some cases, she has played down her achievements in the past due to concerns about potentially offending a male ego. This realization was shocking to me and sparked an important conversation among the group and in our home. It is evident that this issue is far from unique and highlights the ongoing struggles that women face in the workplace. Despite making significant progress in education and careers, many women still feel the need to downplay their abilities in order to avoid being seen as a threat. This reinforces the importance of continued advocacy for equality in the workplace and the need to challenge outdated systems that perpetuate these harmful cultural biases. Doubts of impostor syndrome began to ring from this discussion which led me to our previous week's book: 12 Rules for Life. In that book, one of the rules outlined is the importance of concision and mutual understanding in discussions. Could I truly be as open toward equality if I had not noticed this type of slight discrepancy in my own life? With Sheryl Sandberg's insights on feminism as a prime example of the power of definitions, I began to think of my own viewpoints and definitions. Depending on how feminism is defined, it can evoke both positive and negative reactions. For instance, a definition that suggests "women should act like men" is often viewed as offensive, whereas a definition that promotes equal treatment and opportunities for women is generally seen as positive. That is the power of information and discussion. Through the text, we were led to places we had not discussed before. And with it, I believe all left better than before. Expanding on one 's beliefs and sharpening definitions through discourse is exactly what we do on a weekly basis in our live webinars. Why is this important in trading? A key point of discussion these past few weeks has been deciphering when and how the recession could hit. Soft and hard landing are terms used in finance and economics to describe the trajectory of interest rates. Understanding the definition of these terms is crucial as it affects whether one is bearish or bullish on the market. In this article, we will explore what soft and hard landing mean and the key differences between them. |
Q: What is a soft landing? A: Soft landing refers to the idea that interest rates will eventually go down as a result of subsiding inflation, high employment, and growing company revenues. This scenario is characterized by stable and sustainable growth of the economy. Q: What is a hard landing?
A: Hard landing refers to the idea that interest rates will eventually go down as a result of a recession and rising unemployment rates. This scenario is characterized by a significant drop in company revenues due to prolonged elevated interest rates and is seen as the only remedy for controlling inflation.
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The main point of disagreement between the two sides is when the Federal Reserve will start lowering interest rates. Until this date is agreed upon, either scenario could be correct for different quarters of the year. While the outcome of these scenarios is anyone's guess, it is important to continue the discussion as new information and data presents itself. Being informed about the market is just the first step to successful trading. Regardless of your stance as a bull or a bear in the market, hard or soft landing, it is essential to take the time to listen to opposing viewpoints. While this may not always lead to a change in your opinion, it is important to at least consider the possibility that the other side might have valid arguments. This approach can aid in making informed decisions when it comes to managing your finances, such as how much cash you hold, how many positions you hold, and the size of those positions. That is why I highly suggest joining the YellowTunnel trading community, where you can review our non-opinionated AI trading program and openly discuss and explore different trading strategies with other participants. We offer a 30-day risk-free trial that gives you access to the YellowTunnel platform and lets you decide for yourself. If, after 30 days, you believe YellowTunnel's predictive software and trade intelligence platform is not for you, we will refund your membership! That is how confident we are in our signal accuracy and trading tools. For more information on the YellowTunnel tools and our trading community, I suggest reviewing our 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 Sticky 3M(MMM): Money, Money Money |
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AT&T Inc. (T) is an American multinational telecommunications conglomerate that is one of the largest providers of mobile, broadband, and TV services in the United States. As of 2021, the company has a market capitalization of over $230 billion and a revenue of $169 billion that year; it is considered one of the most widely held stocks in the world. AT&T has a diverse business portfolio, encompassing telecommunications, entertainment, and technology services, as well as having a strong presence in various industries such as wireless communications, TV, and advertising. On Friday, T sold off and put their symbol below $20 - a great price to get in on the telecom -giant. But let's review our A.I. forecast in detail. |
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Earnings Season is here and so is Mr. Peltz. Disney (DIS) will announce its earnings this Wednesday. |
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Activist investor Trian (holds 4 million DIS shares) sent another letter to Disney, pushing for the removal of a board member in favor of instituting Nelson Peltz. The last time we traded Disney (DIS) during the Earnings Season, we had a 50%** return on risk. Let me repeat that, last time we had a 50% return! That's a pretty good return after holding the position for only 1 day! |
Be prepared: Disney (DIS) is scheduled to announce its earnings on February 8th. This is my favorite time of year! |
(A portion of Yellow Tunnel sales will go to directly help the Ukrainian people) |
CURRENT TRADING LANDSCAPE |
On Friday, the stock market saw a downturn as investors processed mixed news from the latest jobs report and the earnings of major tech companies. All three major U.S. indices turned red after trading higher for most of the week. The latest jobs report showed a surprising increase in employment, with 517,000 jobs added in January, far exceeding the expected 187,000 jobs and surpassing the revised 260,000 jobs added in December. This resulted in the unemployment rate dropping to 3.4%; however, wage growth for January was 4.4%, lower than the 4.6% growth seen in December. After the release of new data, the yield on 10-year Treasury bonds has risen to 3.5% from its previous level of 3.4%, in turn decreasing bond prices. Primarily, this can be attributed to Wednesday's Federal Reserve decision. The Federal Reserve announced on Wednesday that it had raised the target range for the federal funds rate to 4.5%-4.75%. In their policy update, the Committee stated its aim to achieve maximum employment and 2% inflation over the long run. Future increases in the target rate will be based on economic and financial developments, inflation risks, and the impact of previous policy tightening. The Committee will continue reducing its holdings of Treasury securities and strategically adjust policy in order to meet their objectives. Furthermore, the Fed will vigilantly observe labor market trends, inflation numbers, as well as global developments to back up any future decision-making. Additionally, the ISM Manufacturing Index for January revealed a surprising drop to 47.4, contrasting economists' predictions of a minor rise to 48.1. The drop in demand in the manufacturing sector bolsters the case for pausing interest rate hikes. Earnings season is still ongoing and several major companies have reported exciting results, with more key reports to come. This week, the earnings of tech companies Amazon, Alphabet, and Apple made headlines. Despite boosting the market earlier, tech stocks saw a decline in after-hours trading. Apple's iPhone sales fell short of expectations, Amazon had a weak forecast and misses in its AWS segment, while Alphabet was affected by a slowdown in ad spending. Meanwhile, Bitcoin continued to rise after the Federal Reserve's announcement, with investors eyeing a potential $24,000 price. These events are worth watching as they may impact the market in the near future. Increased volatility is expected in the equity markets in the coming months. While there may be a market bottom in the first half of the year, downward revisions to the S&P 500 revenue numbers are a major contributor to market instability and are not currently reflected in market levels. Additionally, the dollar is oversold and could see a rally in February and March. However, the bear market is expected to persist this year, making it important for investors to exercise caution and stay informed of market developments. With these developments in mind, there is one sector and one symbol I will be looking to move on in the coming days - but before I settle on that, let's review our A.I. data... |
Using our predictive software, I have identified a specific sector that should see positive growth as Q1 of 2023 continues. Despite the many obstacles that continue to arise, this particular industry may be sheltered from a number of these difficulties and should experience growth due to existing market conditions along with our forecasting equations. According to my model, this symbol is especially promising—after conducting extensive research, I believe it is wise for us to proceed. |
The iShares U.S. Telecommunications ETF (IYZ) provides exposure to stocks in the US telecom sector, such as wireless carriers, telecom equipment manufacturers, and internet service providers. It tracks the performance of the Dow Jones U.S. Select Telecommunications Index, offering investors a comprehensive view of the industry. Investing in IYZ allows for diversification within the telecom sector, reducing the risk associated with investing in a single company. The telecom industry plays a crucial role in technology and has a low correlation with other markets, making it a reliable source for portfolio stability... |
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NOTE: We encourage all subscribers to view the instructional videos on how to use your membership best and invite our members to participate in live weekly strategy roundtable workshops that are also archived for your convenience so that they can 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 © 2023 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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