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You receive this email, because you signed up to get email from YellowTunnel newsletter on 11/12/20.  If you no longer wish to receive any emails from YellowTunnel, please use the "Unsubscribe" link towards the bottom of this email. June 30th, 2024 | Issue 240  Hello Trader, Q3 is finally upon us! Reflecting on the final stretch of Q2, stocks started the week with mixed signals as the market buzzed with optimism about AI-driven profits, particularly for chipmaker Nvidia, which has been a key player in recent market gains. This week, all eyes are on a series of critical economic reports: consumer confidence on Tuesday, new home sales on Wednesday, weekly jobless claims and quarterly GDP on Thursday, and core PCE data on Friday. These reports are pivotal for investors like us, navigating a landscape defined by economic indicators and major corporate developments.   Earlier in the week, during a live trading room, I executed a gamma positioning trade that underscored the importance of understanding market dynamics during earnings season. This strategy has become an essential tool for me, especially when deciding whether to go long or short on volatility.   Earnings season always brings a unique set of challenges and opportunities for traders. This time, as I navigated through the fluctuating market, I relied heavily on a strategy that has proven to be incredibly insightful: gamma positioning. Understanding and implementing this approach has significantly influenced my trading decisions, especially when determining whether to go long or short on volatility.   But what exactly is gamma positioning? Let's break it down. Gamma measures the rate of change of delta, which is the sensitivity of an option's price to changes in the price of the underlying asset. If delta indicates how much an option's price will move with a $1 change in the asset, gamma tells us how much this delta will change with that same $1 move. This second-order measure provides deeper insight into how options will react as the market shifts.   In the options market, dealers play a crucial role by providing liquidity. They constantly hedge their positions to manage risk. When dealers are short gamma, they face increasing risks as the market moves. If the market price rises, they need to sell more of the underlying asset to hedge their positions, and if the market price falls, they need to buy more. This behavior can amplify market volatility. Conversely, when dealers are long gamma, they buy as the market rises and sell as it falls, acting as a stabilizing force.   The math behind dealer positioning involves analyzing the collective gamma exposure across various price levels. When dealers are short gamma, their hedging actions can lead to increased market instability. By mapping out these gamma exposures, traders can identify critical support and resistance levels—zones where the market is likely to encounter significant buying or selling pressure.   In my recent gamma positioning trade, recognizing that dealers were predominantly short gamma allowed me to anticipate heightened volatility around specific price points. This foresight enabled me to strategically position myself, taking advantage of expected market swings and managing potential risks effectively.   A crucial component of my approach is the integration of AI models. These models sift through vast amounts of data, identifying trade opportunities that align with my gamma positioning strategy. The blend of advanced analytics and a nuanced understanding of dealer behaviors creates a robust framework for making well-informed trading decisions.   Adapting to market conditions and adjusting strategies accordingly is crucial for successful trading. Each time I apply these principles and see positive results, I feel a deep sense of accomplishment. It underscores the importance of staying informed, leveraging cutting-edge technology, and being flexible in response to market dynamics.   As we continue to navigate the complexities of the financial markets, it's essential to keep learning and evolving. Embrace the tools and knowledge at your disposal, and remain agile in your trading strategies. This adaptability is what sets successful traders apart in the ever-changing landscape of finance. Transform Your Sundays into Profitable Mondays with Weekly Power Trader! Click Here If you like this blog, share it with your friends, frenemies, and perfect strangers.   (they can subscribe here) WE ARE NOW ON THE X PLATFORM   Every day, I highlight our best strategies and potential trading setups via the X platform.   Check it out!   Click Here>>  (Advertisement) Transform Your Sundays into Profitable Mondays with Profit Accelerator Trader!   Unlocking market profits can be as straightforward as opening a single email. Say goodbye to constant screen monitoring and phone checking. With Profit Accelerator Trader, receive one detailed email every day, guiding you through the trades for the upcoming trading session.   Efficient Trading at Your Fingertips.  Just open, set your trades, and enjoy your week. It's the smarter way to trade, saving you time and eliminating stress.   Recent Success Stories   •  Soaring 50% gains on $HPE •  An impressive 100% on $ORCL •  An outstanding 257% on $ADBE   Click here to learn more   Vlad Karpel Chief Investment Officer/Founder TRADE IDEA OF THE WEEK  Alphabet Inc. (GOOGL) As we delve into the upcoming trading week, Alphabet Inc. (GOOGL) emerges as a compelling opportunity within the technology sector, driven by robust market conditions and strategic developments. Alphabet, the parent company of Google, has exhibited strong performance amidst recent market volatility, underpinned by its diverse revenue streams and leadership in digital innovation. GOOGL's recent quarterly earnings report exemplifies its resilience and growth trajectory. The company reported earnings that surpassed analyst expectations, with revenue fueled by substantial gains in advertising revenue across its platforms. Google's dominance in digital advertising continues to bolster its financial performance, supported by a surge in online consumer activity and marketing expenditures as businesses seek to capitalize on digital trends.   Beyond advertising, Alphabet's cloud computing division, Google Cloud, has emerged as a formidable competitor in the cloud services market. The segment's revenue growth has accelerated, driven by increased adoption of cloud infrastructure and solutions by enterprises globally. Alphabet's strategic investments in AI and machine learning further differentiate its offerings, enhancing customer engagement and operational efficiencies across industries. Market sentiment towards Alphabet remains positive, buoyed by its strategic initiatives and market leadership in transformative technologies. Analysts have reiterated bullish outlooks on GOOGL, citing its robust earnings growth potential and innovative prowess. The stock's technical indicators reflect bullish momentum, with recent price action signaling a potential breakout above key resistance levels. Amidst broader economic uncertainties and sector-specific opportunities, Alphabet Inc. (GOOGL) stands out as a compelling trade for the week ahead. Investors looking to capitalize on the tech sector's growth prospects and Alphabet's strategic advantages should consider adding GOOGL to their portfolios, leveraging its strong fundamentals and market position in the digital economy.   This week, I'll be adding Alphabet Inc. (GOOGL) to my portfolio! Click here to read more about this week's Power Trade pick… To great returns, Vlad Karpel YellowTunnel and Tradespoon Founder P.S. Click here for access to the latest Power Trading Live Strategy Roundtable Recording.  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 © 2024 Yellow Tunnel LLC. 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