Tap Into This Frothy Trade, Cheers!

Trader 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] April 16th, 2023 | Issue 178   Hello Trader, Happy Earnings Season! This week, we received key inflation and retail data as well as major banks releasing their earnings, officially kicking off the latest earnings season. On the personal side, I had the pleasure of spending time with my family in Florida this past week. This past week I returned from a visit to Miami, where I spent quality time with my in-laws and my son David. Unfortunately, the weather was less than ideal; constant rain and strong winds set in. It seemed like Hurricane Season hit Florida in April instead of September! This type of weather was so unexpected that it had me thinking about global warming and wondering if this is how it affects our planet. Whenever I see weather shifting on this scale, I am reminded of the movie "The Day After Tomorrow" and how Mother Nature can sometimes surprise us.  Despite the weather, we made the most of our time indoors and played plenty of board games such as chess, cards, Uno, and Rummikub. Seeing the week play out had me thinking about the power of compounding investment, not just in the stock market but also in our relationships with our loved ones. Spending quality time with my family is always a great investment, making the most of each day even if it's just a game of chess indoors while it rains outdoors. Making dinner and enjoying conversation with one another is similar to how small gains of 0.5-1% can compound over time and provide significant long-term results—exactly what we do when trading with our Earnings Power Trader or Aggressive Power Trader services.  While I was playing board games with David, my wife didn't let the rain stop her and made her way to the local stores in search of a new purse. Seeing some of these prices, I couldn't help but think about the impact of inflation! My wife joked that if we sold all of her purses, we'd be millionaires. While I don't think we'll become millionaires from selling purses, it's a great reminder that we should always be mindful of our spending habits and focus on making wise investments.  At YellowTunnel, we believe that our Earnings Power Trader and Aggressive Power Trader services can help you achieve your financial goals and grow your wealth over time. Just like playing board games with your kids can compound into a valuable relationship, our trading strategies can compound your gains and provide great long-term results. We invite you to give our services a try and see for yourself the power of YellowTunnel.  For more information on the YellowTunnel tools and our trading community, I suggest reviewing our latest Strategy Roundtable, which we hold weekly on YellowTunnel. I also recommend checking out our latest Roundtable webinar in its entirety below: [Image] To great returns, [Image] Vlad Karpel YellowTunnel and Tradespoon Founder P.S. [Click here]( for access to the Power Trading Live Strategy Roundtable Recorded every Thursday.   TRADE IDEA OF THE WEEK Tap Into This Frothy Trade, Cheers! Molson Coors Beverage Company (TAP) is a multinational brewing company formed in 2005 through the merger of Molson of Canada and Coors of the United States. Molson Coors is the fifth-largest brewer in the world, with a diverse portfolio of brands, including Coors Light, Miller Lite, Molson Canadian, Blue Moon, and Carling. The company operates in over 40 countries, with production facilities in North America, Europe, and Asia. In recent years, Molson Coors has expanded its focus beyond beer to include non-alcoholic beverages and cannabis-infused beverages. The company's stock, $TAP, is traded on the New York Stock Exchange (NYSE) and has a market capitalization of over $11 billion as of April 2023. When reviewing my AI data for TAP, I see several encouraging signals. Looking at the Stock Forecast Toolbox, I see that TAP has an impressive model grade of B, indicating it is in the top 25% for accuracy. With this level of accuracy, I feel confident in the symbol's projection within my toolbox. Looking at the 10-day forecasted data, we see a strong vector trend towards the upside with all positive vector scores—signaling a great bull run for TAP in the coming days. See TAP 10-day predicted data... [Click here to read more about week’s Power Trade pick…](     TRADE REVIEW Welcome to our new "Recent Trade Review" section, where we discuss some of our recent successful trades and highlight the strategies that led to our success. This week, we'd like to showcase our successful trade in DAL using our Earnings Power Trader (EPT) services.  Our EPT model identified DAL as an opportunity to collect extra premium due to elevated implied volatility. I bought into the position on Wednesday and held it overnight. By selling out the money premium and collecting a return of 0.5-1% by holding the position overnight, I and those subscribed to EPT were able to capitalize on this opportunity.  One of our primary strategies is to look for liquid names with weekly options available. Half of the volume of options are weekly and 0 DTE options, which allow us to take advantage of opportunities for quick gains. In a bear market, one of the most popular strategies is to collect premium by selling out of the money puts and call spreads.  I am proud to share that this strategy, alongside our A.I. models, have been performing exceptionally well. Our paid services offer exclusive benefits, including SMS messages to alert you when to enter and exit positions in a timely manner. That is also the difference between our free services and paid services: we not only alert great buying opportunities but also when to sell. We believe this sets us apart from our competitors and allows us to provide top-notch service to our clients.  If you'd like to learn more about our trades and see recordings of our live trading room, please visit our website at the link below. While EPT and APT are paid services, it is completely free to follow along and watch our live trading room recordings. Just create a free account and head to: [Click here to read more…](     (Advertisement) Crash Landing?  The last time we traded AMERICAN AIRLINES (AAL) on April 2O, 2022, we had an 11.36% return on risk. Let me repeat that, and we had an 11.36%** return!  That's a pretty good return after holding the position for only 1 day!  This is my favorite time of year!   Every trading day, otherwise-unremarkable companies find themselves delivering outsized gains to shareholders.  25%... 45%... 64%...** and more. [Read the April Monthly Income Calendar Before Thursday]( (A portion of Yellow Tunnel sales will go to directly help the Ukrainian people)     CURRENT TRADING LANDSCAPE Major stock indexes declined on Friday despite better-than-expected earnings reports from major banks, with mixed signals for the economy leaving investors uncertain about the future. Still, U.S. indices are still set to close the week in the green, though investors are keeping a close eye on how well companies' sales and earnings are holding up in an economy that is beginning to show some strain. Major banks officially kicked off earnings season on Friday with Citi, Wells Fargo, and Chase reporting quarterly data.  JPMorgan Chase & Co. reported positive sales and earnings per share, surpassing expectations, despite incurring losses of $868 million on securities. CEO Jamie Dimon noted that the economy currently looks healthy, yet growth is slowing and there are some uncertain signs for the future.  Wells Fargo (WFC) also beat its sales and earnings estimates, but it set aside billions of dollars in anticipation of potential losses on credit extended to people and businesses, similar to JPMorgan. Citigroup (C) reported better-than-expected performance for sales and EPS, with its stock up 4.1%. Friday's other key economic release, March retail sales, showed that sales rose only 2.9% year-over-year, falling below both expectations and February's results, both of which recorded gains of over 5%.  Although the indexes weren't soaring on Friday, the Dow is up 1.2% this week, marking its fourth consecutive week of gains and the largest four-week point gain since 2022. While some sectors were either holding steady or spending time in the green before seeing mild declines, the 10-year Treasury yield—a barometer for confidence in longer-term economic demand and inflation—is up to about 3.5% from just over 3.4% Thursday.  On Thursday, stocks rallied as new data showed that inflation was cooling down, leading investors to hope that the Federal Reserve would stop raising interest rates. The Producer Price Index (PPI) released on Thursday showed that companies' costs had risen by 2.7% year-over-year, below expectations of 3%, and the largest drop in three years.  The PPI data follows Wednesday's cooler-than-expected reading on consumer prices, with the latest CPI report showing prices rising by 5% for the 12 months ending in March; this is a slowdown from February's 6%. The core CPI, which excludes volatile food and energy prices, rose annually by 5.6%. Monthly CPI showed some cooling, ticking up 0.1% from February compared to the previous 0.4% increase.  The cooling of inflation has led to increased confidence that the Federal Reserve may soon pause its rate-hiking campaign. However, the flip side of falling inflation and interest rates is a weakening of economic demand, which the Fed highlighted in its meeting minutes released later in the day.  The VIX is trading near the $19 level, and upcoming earnings reports from companies such as Delta Air Lines and UnitedHealth Group, as well as retail and PPI data, could influence the market's next move. I expect the market to trade sideways for the next two to eight weeks, and I have adopted a market-neutral stance looking for ways to hedge positions when appropriate.  The stock market is currently in the process of building a top, with a pullback expected to start within the next two to four weeks, depending on earnings guidance. The drop in the two- and ten-year yields below multi-month support is a worrying sign, and if the ten-year yield drops below 3.2%, it could mean that the market has reached its peak for the next few months. Money market funds are at a historical high of two trillion dollars, and cash deposit outflows are at multi-year highs. The start of earnings season will set the tone in the market for the next few quarters, and the current market is only being supported by a narrow leadership. Risk management is crucial, and credit liquidity remains a key theme.  I still advocate for a "hard landing" approach, not opposing the Federal Reserve's high-interest rates and elevated US dollar. We may see bulls safeguarding the December lows in the upcoming weeks, but as we get closer to earnings season, there is an increased chance of testing or surpassing 52-week lows within months from now... [Click here to read more…](   SECTOR SPOTLIGHT During times of economic uncertainty, when consumers are more cautious with their spending, companies in the consumer staples sector can be expected to see relatively stable demand for their products. Additionally, with earnings season approaching, consumer staples companies are often seen as a defensive play by investors looking to hedge against market volatility. As a result, consumer staples could be an attractive sector to watch for those looking for stability in uncertain times. With this in mind, my AI model has identified a great opportunity. Consumer Staples Select Sector SPDR Fund (XLP) is an exchange-traded fund that tracks the performance of companies in the consumer staples sector of the S&P 500 index. This sector includes companies that produce essential consumer goods such as food, beverages, household products, and personal care items. The fund holds stocks from some of the largest consumer staples companies in the United States, such as Procter & Gamble, Coca-Cola, and Walmart. As a defensive sector, the fund is often viewed as a safe haven for investors during times of market volatility or economic uncertainty. With earnings picking up in the next few weeks, I believe this sector is in a great position to prosper. I have traded XLP in times of volatility when my A.I. models showed similar signals and found success. First up, reviewing the 10-Day Stock Forecast Toolbox predicted data for XLP, I see a strong vector trend that is one-directional and consistent towards the upside following Monday, April 17th. Thereafter, we see all green signals pointing towards the upside... [Click here to continue reading…](   NOTE: We encourage all subscribers [to view the instructional videos]( on how to use your membership best and invite our members to participate in live weekly strategy roundtable workshops that are also archived for your convenience so that they can be viewed at a later time.   [How To Trade a Bear Market Strategy](  With the unpredictable nature of the market and the uncertainty ahead of us, I can’t emphasize enough how vital it is for our readers and members of the Yellow Tunnel community to keep referring to our Live Trading Room so as to maintain a close tie of how our I and my AI platform is navigating us in and out of select trades. [It’s FREE and I highly encourage everyone to sign up for the Live Trading Room and keep checking in throughout the trading day.Â](  Every Monday and Wednesday, I highlight our best strategies and potential trading setups via the DISCORD server. It’s the future of bringing together a trading community’s total services, educational products, live chat venues, support, news, how-to tutorials, webinars, live-trading demonstrations, and tons of market analysis. It is incredibly interactive and full of crucial and timely information. Just go to: [(  I also want to emphasize to traders how vital a stop-loss discipline is to winning and being successful in an unforgiving market. We employ specific stop-loss instructions with every trade. The buy and sell programs controlled by high-frequency related algorithms can create great profits or cause sudden losses, so it is imperative to maintain an element of controlling risk with each trade. TRADING CONCEPTS - VIDEO Market Analysis To effectively trade in today's rapidly moving equity markets, active day traders and swing traders must stay ahead of market changes due to inflation, global uncertainty, politics, as well as 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 in today’s changing market. [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 the 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 © 2023 Yellow Tunnel LLC. 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