Delta: High Flying Stock

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 30th, 2022 | Issue 115 Hello Traders, Welcome to the Yellow Tunnel community, an aggressive short-term trading service dedicated to all classes of traders seeking to elevate their trading skills, market awareness and trading profits.  Another week of hand wringing and technical levels violated by the major averages have the market on the defensive and in deeply oversold territory. There was a complete collapse in the semiconductor sector, which had been a stalwart of leadership all of 2021, but sentiment abruptly turned bearish and selling pressure swept through the chip stocks after hammering the high price-to-sales stocks for most of January.  Solid earnings from Apple Inc. (AAPL) and Microsoft Corp. (MSFT) have helped to stem the bleeding in the tech patch, but there is clearly a change in what tech stocks the market wants to own going forward. Namely, legacy companies with next-generation innovations where price-earnings ratios are generally low – like under 20x. And even then, there has been a huge loss of trust that takes time to restore in the vaunted tech space. Until then, I expect continued volatility to remain elevated.  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 27th. [Click Here.]( TRADE IDEA OF THE WEEK The top holding in JETS is Delta Air Lines Inc. (DAL), and arguably the most blue-chip of all the airlines. This past week, the company posted fourth-quarter results that impressed Wall Street. Delta reported EPS of $0.22, that beat consensus estimates by $0.07, on revenue of $9.47B that beat by $180M.  Glen Hauenstein, Delta's president, commented: "The recent rise in COVID cases associated with the omicron variant is expected to impact the pace of demand recovery early in the quarter, with recovery momentum resuming from President's Day weekend forward. Factoring this into our outlook, we expect total March quarter revenue to recover to 72 to 76% of 2019 levels, compared to 74% in the December quarter."  Looking at the 2022 forecast, Delta is estimated to earn $1.99 per share versus a loss of -$4.08 in 2021 on a revenue spike of 43.70% to $42.97B. These are impressive recovery numbers and bode well for the stock price if Delta delivers this level of financial performance going forward... [Click here to continue to this week’s Power Trade pick…]( (Advertisement) Earnings Season is here and Disney (DIS) to announce its earnings February 9th. The last time we traded DIS during Earnings Season we had a 60% return on risk.  Let me repeat that, we had a 60% return!  That's a pretty good return after holding the position for only 1 day! Be prepared: Disney (DIS) is scheduled to announce its earnings on February 9th.  This is my favorite time of year! [You’re Invited: Click Here]( CURRENT TRADING LANDSCAPE  [Alternate text](  Friday’s session was the first sign of encouragement that traders could latch onto as the market opened down hard and put in a mid-day reversal higher. This is a probable sign that the market is groping for a bottom as both SPY and QQQ are holding their climax lows set this past Monday. The market isn’t out of the woods yet, but it is a constructive pattern shaping up.  The $SPY remained volatile and range bound. The $SPY has been trading between $420 and $440 and closed at $435, below the 200 DMA. The value/reflationary closed lower, down 0.2%, below the 50 DMA. The technology sector ($QQQ) is below the 200 DMA, closed down at 347 and near the October low.  The $DXY continued to trade higher and broke through the recent highs. The $DXY is overbought and should pull back in the next 1-2 weeks. The $TLT traded higher, up 1.9%, and closed below the 200 DMA, near the recent lows. The $VIX traded closed at the 29 levels. l... [Click here to read more…]( SECTOR SPOTLIGHT  [Alternate text](  In light of the spread of Omicron, which has kept a wet blanket on the travel sector, recent bookings data for summer flights are at pre-pandemic levels. Several airlines are guiding to an upbeat summer travel season and the data surrounding Omicron is looking more favorable this past week, providing for some renewed optimism about the travel sector.  When looking at the subsectors of the broader travel sector, it can be divided up into lodging, cruise lines, airline and travel services. Today, I want to place some focus on the airline industry, where recent data suggests this sector is due to “take off” – pun fully intended. But seriously, after several false starts due to Covid, airline stocks are cheap.  From a sector standpoint, the U.S. Global Jets ETF (JETS) is best suited for those that want to avoid single stock risk and yet get nearly the same level of beta from an ETF that owns all the quality names in the space – the top 10 holdings accounting for about 57% of assets... [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 Does Your Need to be Right Get in the Way of Making Money? No one wants to be wrong, especially with money on the line. For many traders, this ‘need to be right’ is what holds them back. And there’s no shortage in how this need to be right can manifest, it shows up in many different ways in our trading. The good news is there are effective strategies that can help mitigate the ‘need to be right... [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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