How to trade this bear profitably...
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April 5, 2020 | Issue 19
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Hello Traders,Â
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My middle schooler has a poster in her room, which says: "Life is not about waiting for the storm to pass, but learning how to dance in the rain," which my wife must have hung at some point, probably five years ago, and I just noticed tonight. How appropriate and timely that in the flood of negativity and sadness, you too are able to find some positivity in today's storm.Â
The markets were able to hold on to their gains after the disappointing unemployment stats and the news in regards to the decrease in the future oil supply numbers. Momentum behind the bulls is deteriorating and the markets are due for a pullback. The energy sector led late last week after President Trump initiated a dialogue with Russian President Vladimir Putin renegotiate a cut in oil production with Saudi Arabia.   Â
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I hope that you enjoy and profit from my most recent article. That I wrote covering my insights to the short-term trading landscape, sector analysis, stocks and ETFs in focus, stock recommendations, and a review of what strategies are working best.
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To great returns,
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Vlad Karpel
YellowTunnel and Tradespoon Founder
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P.S. Please see below for access to the Live Strategy Roundtable I recorder on Friday, April 3rd.
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TRADE IDEA OF THE WEEK
The top holdings within the Select Sector SPDR ETF (XLU) is a company that comprises 14.49% of the XLU, twice the percentage of the next largest holding.Â
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The company operates approximately 27,400 megawatts of net generating capacity. It serves approximately 10 million people through approximately 5 million customer accounts in the east and lower west coasts of Florida with approximately 75,400 circuit miles of transmission and distribution lines and 661 substations.
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The stock currently trades around $223 and well off its all-time high of $283 set back in early March. For traders, this stock is an excellent trading vehicle as its daily share price swings about 5-10 points. Whatâs nice about trading utilities is that in this market landscape, if youâre initially wrong on timing your entry point, you have a good shot at being right soon thereafter...Â
[Click here to continue to this weekâs Power Trade pickâ¦](
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CURRENT TRADING LANDSCAPE
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The markets were able to continue yesterday's rally. Markets are up 20% and the bear market is officially over. This is a huge win for the bulls since we can discuss where the bottom of the market is. I am continuing to be optimistic, as it seems that Italy is leveling off its peak and the number of daily cases has not increased since Sunday.
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The markets were able to hold on to their gains after the disappointing unemployment stats and the news in regards to the decrease in the future oil supply numbers. Momentum behind the bulls is deteriorating and the markets are due for a pullback. The energy sector led late last week after President Trump initiated a dialogue with Russian President Vladimir Putin renegotiate a cut in oil production with Saudi Arabia.   Â
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My opinion has not changed. SPY was able to close above the key $230-240 level, which is December 2018 low. "BUY" signal based on the Aggressive Power Trader Portfolio for tomorrow is at $240 level using SPY and "SELL" signal is at $262 for short term traders. Markets are susceptible to retest the recent lows in the next 2-10 days. Â
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I also, updated the Aggressive Power Trader watch list and added a stock that should help you to hedge their positions in these turbulent times...Â
[Click here to read moreâ¦](
SECTOR SPOTLIGHTÂ
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As the market tries to find its footing against the fluid stream of COVID-19 headlines, there is some constructive trading action occurring within the more defensive sectors. I am growing bullish on the power utility sector given the steep sell off these stocks have incurred and the lofty dividend yields they offer. They have been victims of heavy selling by index funds as they are components to most if not all index funds.
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Utility stocks are also trading low on the notion of weaker demand. Although demand for electricity is currently down from industrial, municipal and academic facilities, this is a temporary situation that will be quickly resolved when the people get back to work by what should be early summer. Utilities have no risk to the fluctuating dollar, maintain strong balance sheets with stable dividend payout ratios and should outperform going forward in a low interest environment as the economy comes back on line.
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The best way to trade the utility sector is by way of the Utility Select Sector SPDR ETF (XLU), which is a great proxy for ...
[Click here to review the TOP HOLDINGS and Market analysisâ¦](
Another Free Service from YellowTunnel to help you become a better and more profitable trader!
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Access to the Live Strategy Roundtable. [Click Here>>](
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I reviewed:
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- How to eliminate the guesswork from your trading
- What strategies work best for current market conditions
- How to refine your entries and exits with precision
- How to grow your portfolio faster with winner after winner
AGGRESSIVE POWER TRADER
In our primary trading service [Aggressive Power Trader]( I direct our subscribers through the âtrade decision-making processâ with the mindset of being in and out of trades within 24-48 hours with the objective of booking 30%-60% gains against the amount of capital at risk on each and every trade
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The beauty of this service is that it provides tomorrowâs featured trades the night before so traders can analyze and work on how they might best want to participate. You get my watch list to examine well ahead of when Iâm going to execute my [best ideas]( next day. It also makes available my watchlist of trading candidates with the various parameters that makes is easy to manage each trade with defined risk levels.
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Below are actual recommendations with parameters found on our [Aggressive Power Trader Watchlist](.
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[Click here to learn more...](
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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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. 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 on here and on our web site. The past performance of any trading system or methodology is not necessarily indicative of future results. 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.Â
Questions or inquiries regarding the website and/or service may be submitted via email to i[nfo@yellowtunnel.com](mailto:Info@Yellowtunnel.com?subject=Questions%20or%20Inquires%20PTM%20Blog). You may also complete our [inquiry form located here](.
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Aggressive Power Trader is owned by YellowTunnel LLC, 318 Half Day Rd., Suite #215, Buffalo Grove, Illinois 60089. Website: [](
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