Nvidia To Surge Again

see the trade of the week inside... You receive this email, because you signed up to get email from YellowTunnel newsletter on 06/07/19.  If you no longer wish to receive any emails from YellowTunnel, please use the "Unsubscribe" link towards the bottom of this email. [Image] January 17th, 2022 | Issue 113 Hello Traders, It’s been a dramatic week for the stock market where tremendous sector rotation is underway with more of the same fund flows out of high price-to-sales tech and growth stocks into deep value and cyclical stocks with energy leading all sectors. The heavily-tech weighted S&P and Nasdaq are retrenching to key support levels that are being retested as of Friday, but I think the intra-day lows seen on Monday will hold.  Retail sales for December came in well below estimates due to Omicron, inflation and supply chain bottlenecks, all of which should see improving conditions in the weeks and months ahead. However, for the here and now, it’s a stock picker’s market with a lot of busted charts all across the trading landscape.  The start of earnings season is also triggering some doubts after the big banks and brokerages sold off on what were good fourth-quarter results but guided to more challenging times ahead for their trading desks. This ate into some of the bullish sentiment that had carried the bank sector to new all-time highs. That momentum has now faded, leaving energy semiconductors as the two strongest sectors going into the weekend. It’s a more narrow market and stock picking is definitely at a premium...  Have a wonderful week ahead and let’s create some meaningful wealth together in 2022...  [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, January 6th. [Click Here.]( TRADE IDEA OF THE WEEK Of all the top ten holdings within SMH, our AI system has identified high-end chipmaker Nvidia Corp. (NVDA) as the stock with excellent upside potential from its current price of $265. The company is considered the de facto leader in advanced GPU, cloud, data center, gaming and auto semiconductors while also out front in the whole new move into the metaverse.  According to the consensus of the 30 analysts that cover the stock, sales and profits soared in 2021 with Q4 earnings forecast to come in at $1.22 versus $0.77 pe share for Q4 2020, implying a 58% Y/Y rise in profits. Source: [www.yahoofinance.com](. Nvidia continues to maintain its technological lead in the markets it serves and is why it commands a premium to its peers from a valuation standpoint. The stock trades at roughly 50x, which coincides with its growth rate... [Click here to continue to this week’s Power Trade pick…]( (Advertisement) Earnings Season is here and Bank of America is in the batter's box. The last time we traded BAC on March 31st, we had a 182.5% return on risk.  Let me repeat that, we had a 182.5% return!  That's a pretty good return after holding the position for only 1 day! Be prepared: Bank of America (BAC) is scheduled to announce its earnings on January 19th.  This is my favorite time of year! [You’re Invited: Click Here]( CURRENT TRADING LANDSCAPE  [Alternate text](  The $SPY pulled back to $462 and right below the 50 DMA. The value/reflationary outperformed the $SPY and was near the all-time high. The technology is below the 50 DMA, right at the key December low level and above the most recent low.  The $DXY was under pressure and broke down at $94.50, right at the key long-term breakout level of $94.5 and below the 50 DMA. The $TLT traded higher and closed at the 200 DMA. The $VIX traded higher, at 20 levels.   After a recent rebound, the Technology stocks broke the long-term bull trend. The $QQQ started the second sell-off wave and can potentially reach the recent lows; the worst-case scenario is the 200 DMA.  I would be a seller of the high beta stocks into the rallies and continue rotating the portfolio into the value stocks ($XLE, $XLI, and $XLF). Since the DXY broke the long-term bull trend, I would accumulate $EEM, $XME, $SLV, $FCX)... [Click here to read more…]( SECTOR SPOTLIGHT  [Alternate text](  Looking at what is shaping up best following the 9% correction for the Nasdaq, my AI platform is getting bullish on the semiconductor and semiconductor equipment sector. I am always interested in trading the chip stocks when my algorithms are flashing buy signals, and as of late this week, I’m getting some green lights in the space. The best way to trade the sector is by owning shares and calls on the VanEck Semiconductor ETF (SMH) – easily the most actively traded ETF that has all the right stocks in its top holdings that institutional fund managers want to own and trade... [Click here to review the TOP HOLDINGS and to continue reading…]( 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 - VIDEO The Importance of Risk Management in Trading Here at YellowTunnel we believe in the importance of trading psychology to both accumulate and retain wealth. Statistics and analysis offer a good estimate of how a certain stock or symbol can trade but “black swan” events, for example, are nearly impossible to predict. This where risk management and trading psychology are essential... [Click here to watch the video...]( 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. 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