Healthiest Trade In A Sick Market

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] October 3d, 2021 | Issue 98 Hello Traders, Markets ended the third quarter with a thud, where the S&P retested the September low and even violated it on Friday. The toxic combination of global supply chain disruptions, an energy crisis in China, inflationary pressures due to wide-ranging shortages, rising bond yields, a few earnings warnings and the inability for Congress to pass an infrastructure bill has the market retreating by 5% off the highs set in late August.  The question all traders ask is how much of the bad news is already priced in and will a 5% pullback turn into a 10% correction. This is hard to say, given the high level of liquidity that is coming out of the bond market seeking positive inflation-adjusted returns that are in liquid asset classes. This tends to be a strong argument for equities if rates rise only incrementally, but so far, it’s been a very bumpy ride.  In what is a very positive development, data on COVID-19 is improving and Merck announced Friday they are developing an antiviral drug in pill form that will help to keep COVID-19 patients out of the hospital. Against this news, the reflation and reopening stocks are getting a much-needed boost and the overall market is finding some support.  [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, September 29th. The link is below... TRADE IDEA OF THE WEEK Within the greater healthcare sector, traders can embrace certain stocks that are trusted names that have been sold down to levels that rarely come along. One of those stocks is the nation’s largest provider of medical insurance and a member of the Dow Jones.  Because of the prevailing theme that there will be some kind of government takeover of the healthcare system, health insurance stocks have come under steady pressure. But the winds of change of socialized healthcare are running into some stiff headwinds as Congress and the electorate are much more leerymore-leery about taking on trillions of dollars of new spending. The drama now playing out on Capitol Hill is revealing just how little support there is for a big jump in new spending... [Click here to continue to this week’s Power Trade pick…]( (Advertisement) CURRENT TRADING LANDSCAPE  [Alternate text](  The $SPY continued the recent pullback and retested last week’s lows at $429. The value/reflationary stocks sold off, down 1.5% and settled right above the last week’s lows. Technology continues to trade in the red, on the $TLT free fall, down 0.4% right at the August lows.  The $DXY is short-term overbought and continues to rise near $94, long-term overhead resistance from the September 2020 high. The $TLT has pulled back and retesting key support levels (July and August lows), 200-day moving average. The $TLT pullback is the key development in the market.  Volatility jumped back to 25 (VIX was at 29) and SPY short-term oversold and will start rebound in the next 1-2 sessions (extreme levels at $TLT, $DXY, $VIX). The $SPY short-term support level is at $428, followed by $420 (sustained break below $428 is a low probability event at this point). The SPY overhead resistance is at $443 and then $446. I expect the bottoming process to continue this week and next.  ... [Click here to read more…]( SECTOR SPOTLIGHT  [Alternate text](  Interest rates have moved up fast, probably too fast, in reaction to the Fed’s latest tapering rhetoric. The spike in bond yields pushed the entire market lower, but especially so for some high-quality defensive sectors like healthcare where growth rates remain very robust relative to utilities and consumer staples. Hence, there is a good cast to trade the healthcare sector and select healthcare stocks for a bounce.  The Healthcare Select Sector SPDR ETF (XLV) has pulled back from an all-time high of $137.05 set back in early September and now trades at $127 where many of the top holdings are now technically very oversold. In fact, the top 10 positions in XLV account for almost 50% of total assets with the who’s who of best-in-class pharmaceutical and medical device companies occupying the top spots.  Our AI-driven Seasonal Chart is providing a very bullish outlook for XLV... [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 Path of Least Resistance Most traders are familiar with the idea of support (demand) and resistance (supply) when looking at a chart.  As a trading psychologist who’s also an active trader, I’ve found these concepts, especially resistance, can be applied to the individual trader, not just a chart.  We know that price tends to follow the path of least resistance. The same is true of most individual traders. An individual trader following their own path of least resistance is the trader who’s taking their well-worn path... [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. 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 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 {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. 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