TLT Alert: Tender Loving Trade To Soar

see the trade of the week inside... You receive this email, because you signed up to get email from YellowTunnel newsletter on 06/30/21.  If you no longer wish to receive any emails from YellowTunnel, please use the "Unsubscribe" link towards the bottom of this email. [Image] July 17th, 2021 | Issue 85 Hello Traders, It’s been a top-heavy week for the stock market in that the major indexes have managed to sustain most of their gains by virtue of the mega-tech stocks trading at or near their highs. Apple Inc. (AAPL), Amazon.com Inc. (AMZN), Alphabet Inc. (GOOGL), Facebook Inc. (FB), Microsoft Corp. (MSFT) and Tesla (TSLA) make up 25% of the total weighting of the S&P 500. It might be said that as this group of stocks go, so goes the market.  Retail sales for June were up by 0.6% versus -0.6% consensus estimate. The news was encouraging, but not enough to sway the market higher. The rolling correction in the reflation trade that started with the travel sector has made its way to the financials, energy, industrials, materials, transportation and is now hitting the semiconductor sector and other high-PE tech stocks.  There are dueling arguments about inflation and whether the Fed is on the right track with maintaining QE and the transitory narrative. To their credit, the bond market has voted with both feet as yields are testing last week’s lows even as the present inflation data continues to come in hot.  In the meantime, earnings season is heating up, with stocks not really responding well to reported quarterly results that beat forecasts. In sum, the market rallied in June and early this month on the rumor of great quarterly numbers and is now selling on the news in classic fashion.  [Image]   To great returns, [Image] Vlad Karpel YellowTunnel and Tradespoon Founder P.S. Please see below for access to the Power Trading Live Strategy Roundtable presentation I recorded on Thursday, July 17th. The link is below...  P.P.S. Please note our new sections called Trading Concepts. This sections is designed to bring aspiring and experienced traders weekly insights to the short-term trading landscape, sector analysis, stocks and ETFs in focus, views and opinions on trading discipline and a review of what type of trading strategies are working best. TRADE IDEA OF THE WEEK With fund flows turning negative in the reflation sectors, there is bullish inflows of capital into some of the consumer staples stocks, with some hitting new all-time highs. A case in point is a company, which reported outstanding second-quarter results while also raising guidance.  The conglomerate beverage and food company are seeing all seven business segments hitting on all cylinders and Wall Street is cheering the strong quarterly report with buyers stepping in aggressively. Consumer spending on its products is robust with the company able to maintain good profit margins... [Click here to continue to this week’s Power Trade pick…]( (Advertisement)  THE MARKET PHENOMENON HIDING IN PLAIN SIGHT  Dear Overnight Trader,  Every trading day, otherwise-unremarkable companies find themselves delivering outsized gains to shareholders.  If you recently owned one of these companies, you pocketed market-beating gains.  Was it luck? No. It takes more than luck to find these types of trades. This isn’t like playing a slot machine.  It’s uncanny how accurate we have been.  These gains have happened all the time, all over the market. That’s because of a [little-discussed market phenomenon that has delivered company after company with gains time and time again]( - and it’s hiding in plain sight. Today, I’m going to show you how… [CLICK HERE TO LEARN MORE](  Vlad Karpel Founder and Chief Investment Officer  [CLICK HERE AND I’LL SHOW YOU HOW]( CURRENT TRADING LANDSCAPE  [Alternate text](  This week, the $SPY took a pause from the recent rally and settled below the key short-term support level at $435. The Mega Cap technology stocks led the pullback today. High Beta stocks also changed momentum to the downside (ARKK, WFH, IWM).  The $DXY has broken above $90.60 resistance and has confirmed its breakout. The next level of resistance is at $93. The $TLT continued to trade higher and the next level of overhead resistance is at $150.      Based on the steep correction in the reflationary stocks, strong dollar and overbought technology stocks, the market is due for a correction in July. The $SPY short-term support level is at $430, followed by $425. The SPY overhead resistance is at $440... [Click here to read more…]( SECTOR SPOTLIGHT  [Alternate text](  Bond investors are decidedly in the camp that the sharp inflation readings are a bubble and not something structural on a longer-term basis. As such, bond prices are trending higher and yields lower. The iShares 20+ Year Treasury Bond ETF (TLT) is the most popular trading instrument for playing the price action on the yield curve from the long side. As the dollar trades higher, that helps push bond prices up as well.  From the chart below, TLT is right up against its 200-day m.a. and looks to push up through it in the days ahead, especially with the dollar index (DXY) also trending higher and taking out overhead resistance. Considering the amount of debt being created by the Fed and Congress coupled with the hot CPI, PPI and retail sales data, the rally in bonds and the dollar is somewhat counterintuitive. But that’s what makes markets! [Click here to review the TOP HOLDINGS and Market analysis…]( Power Trading Live Strategy Roundtable To effectively compete in the rapidly moving equity markets, active day traders and swing traders must stay ahead of new market 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. [Click Here To Watch]( 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. TRADING CONCEPTS The Best Approach to Trading is To Understand it is a Journey One of the most common questions we receive at YellowTunnel is “How do you make money in the stock market?”  With over fifteen years of personal trading experience and having spent the last few years teaching the in’s-and-out’s of the stock market, I’ve pinpointed several key factors that are conducive to a higher ROI.  Having a strong trading plan or good portfolio management skills are some of the ways I believe traders find success, but one of the most overlooked aspects of the stock market is Trading Psychology. [Click here to read more...](  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. 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. This email was sent to {EMAIL} by info@yellowtunnel.com. 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](.  YellowTunnel LLC, 318 Half Day Rd., Suite #215, Buffalo Grove, Illinois 60089. Website: [](  Copyright © 2021 Yellow Tunnel LLC. All rights reserved. [Facebook]( [Twitter]( [Instagram]( In order to unsubscribe from this mailing list, please click [here](