Trade UUP for More Bucks

Trader 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] May 21st, 2023 | Issue 183   Hello Trader, The saga to rent out an apartment during the current economy continues. As mentioned last week, I am in the process of renting out my apartment in Florida. Having recently embarked Florida, I noticed a shift in the dynamics of the real estate market. Demand seemed softer, with apartments staying on the market for longer durations. I even had to adjust the rental price downward, in order to attract tenants. However, despite the softer demand, there was still a noticeable influx of people from New York flocking to the Sunshine State. Many cited the ability to work remotely as one of the reasons for their migration.  While this experience highlighted the evolving nature of the real estate market, it also raised questions about broader implications. Following last week’s key inflation data, I continued monitoring key economic reports to see if there were any indicators for the current trends. The fire sales of Office Real Estate Investment Trusts (REITs) caught my attention. Could this be the next shoe to drop in the market? Is this an indicator of a larger market trend? Only time will tell.  As I delved into the realm of real estate, I couldn't help but continue to consider the implications of the Consumer Price Index (CPI) data on rental prices. With interest rates rising for an extended period, the CPI data is expected to trend downward, including dwelling costs. However, the rate of decline may not be fast enough to prompt a pivot by the Federal Reserve.  These instances serve as a reminder of the interconnectedness of most sectors within the economy and the widespread impact of inflation. From the microcosm of my rental apartment in Florida to the broader trends impacting Office REITs and CPI data, each piece contributes to the complex puzzle of the financial landscape. As we delve deeper into the stock market's positive momentum, ongoing debt-ceiling negotiations, and key earnings reports, it becomes imperative to remain vigilant about the underlying forces that shape our economy and the potential consequences they may carry for investors - more on that in our CURRENT TRADING LANDSCAPE section 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 Fast Track: Weak Dollar The Invesco DB US Dollar Index Bullish Fund ($UUP) is an exchange-traded fund (ETF) that seeks to track the performance of the US Dollar Index (DXY). The DXY measures the value of the US dollar against a basket of six major currencies. The fund aims to provide investors with exposure to the U.S. dollar and its movements in the foreign exchange market. $UUP is designed to reflect the price changes of the underlying U.S. dollar index futures contracts, allowing investors to gain a broad view of the dollar's performance. As a widely traded ETF, $UUP offers investors a convenient way to access and trade the U.S. dollar without directly engaging in currency trading. Looking at our A.I. forecast for UUP we see several encouraging signs. First of all, UUP has a model grade that puts it in the top 25% for accuracy within our data universe- indicating a more reliable forecast. As stated above, the dollar dipped to end the week which offers us a great entry price. The symbol's 52-week range of $27-$30 shows that the current price of $28.35 lands on the lower half of the symbol’s range and a great value! The 10-day forecast for UUP has another major positive signal that indicates to me the symbol is in a great spot for a bull run. See 10-Day Predicted Data: UUP’s vector trend shows a one-directional and positive trend towards the upside. This type of consistent momentum is what I look for in reliable A.I. forecasts. Coupling the latest market levels and activity with our A.I. reading, I believe the dollar is going to be in a fantastic position to make gains - specifically UUP!  This week, I’ll be adding $UUP to my portfolio! [Click here to read more about this week’s Power Trade pick…](     TRADE REVIEW One of the recent trades that I’d like to bring to your attention was in $TJX (from Earnings Power Trader services), as discussed in Tuesday's recording of the live trading room, which can be accessed below Earnings Power Trader (EPT) model identified $TJX as an opportunity to collect extra premium due to elevated implied volatility, prompting us to take action and sell on Monday.  In this trade, we focused on selling out-of-the-money Puts (OTM) and aimed to collect a return of 0.5-1% by holding the position overnight. Our strategy was to look for liquid names with weekly options available. It's worth noting that approximately half of the volume of options traded in the market are weekly options or those with zero days to expiration (DTE).  Selling OTM Puts and implementing call spreads is one of the most popular strategies during bear markets, as it allows traders to collect premium. By capitalizing on the heightened implied volatility, we were able to seize this opportunity in $TJX.  Keep in mind that engaging in options trading carries its own set of risks and complexities, and it is crucial to thoroughly understand the strategy before executing any trades. Proper risk management and a comprehensive analysis of market conditions are essential components for success in this realm.  The $TJX trade serves as a recent example of how our EPT model identifies potential opportunities to generate returns by leveraging market conditions and employing proven strategies... [Click here to review…](     (Advertisement) Our Memorial Day ‘Platinum’ Super sale is ON:  Save $Thousands on Platinum Power Trader’s stock picks and trading strategies! [Click Here for Memorial Day Super Special]( You get access to:  There are no limits on your membership to YellowTunnel Platinum Power Trader.  For just one single super sale membership fee, you’ll get unlimited access to everything YellowTunnel offers, including: - Aggressive Power Trader - Weekly Power Trader - Earnings Power Trader - Dynamic Power Trader - Profit Accelerator Trader …and on top of all of that, exclusive access to my Live Trading Room every trading day. [Click Here for Memorial Day Super Special]( Vlad Karpel, Founder & Chief Investment Officer (A portion of Yellow Tunnel sales will go to directly help the Ukrainian people)     CURRENT TRADING LANDSCAPE The stock market began the week positively, driven by strong performances from technology stocks. Investors closely monitored ongoing debt-ceiling negotiations and awaited key earnings releases, providing insights into market direction. Although Friday saw selloffs, all three major U.S. indices remained on track to finish the week in the green. Source: barchart.com This week market’s were primarily impacted by debt-ceiling talks and retail earnings, while inflation and recession talks remain active. Lawmakers worked to increase the nation's borrowing limit, currently at $31.4 trillion. Progress in debt-ceiling talks was crucial for investors, who sought stability and monitored market sentiment. President Biden expressed optimism about reaching a consensus with Republicans, further boosting market sentiment. This optimism supported markets until talks stalled on Friday.  Likewise, a Federal Reserve survey revealed concerning trends in the U.S. banking sector, with declining loan demand and tightening loan terms. This raised worries of a credit crunch and potential recession. Wednesday saw stock gains as investors grew confident about a debt-ceiling agreement. Meta and Nvidia stocks climbed, and regional bank stocks rose following positive deposit growth news from Western Alliance Bancorp.  Thursday focused on earnings, with Walmart reporting strong results despite a challenging retail environment. Bath & Body Works also delivered impressive earnings and raised guidance. However, Target stock declined due to concerns over retail theft, while gold prices dipped slightly.  Thursday's positive shift came as investors responded to the possibility of a debt-ceiling deal vote in the House of Representatives next week. Meanwhile, cooler-than-expected jobs data and a declining economic index signaled potential recession risks.  On Friday, stocks fell as lawmakers paused debt-ceiling negotiations, increasing uncertainty about reaching a deal before the June 1 deadline. Additionally, Alibaba Group shares declined due to concerns over its cloud-computing business as reported in their latest earnings release. Next week, market focus will remain on the retail industry and the economy, with earnings reports from Best Buy, Lowe's, Costco, Dollar Tree, Kohl's, and Gap offering further insights... [Click here to read more…](   SECTOR SPOTLIGHT In the current market environment, there are indications that the dollar sector is gaining strength. With tightening conditions in the market and the upcoming debt ceiling discussions, it becomes crucial to adopt a strategic approach. Considering market-neutral strategies such as the iron condor can help navigate uncertain times - something we specialize in at YellowTunnel as seen in our latest trades and live trading room recordings. Specifically, there is one name that is catching my eye. Looking at the U.S. Dollar Index (DXY), we see that the dollar has steadily increased in the month of May but has taken a recent dip. While the current market indicators for this symbol, and dollar-related symbols alike, should continue to appreciate, the recent dip offers us a discounted entry price.  Amidst tightening conditions and ongoing debt ceiling discussions, the dollar has displayed resilience and continues to be viewed as a strong buy. The strength of the dollar is reinforced by multiple factors. The soft landing narrative often likened to a four-legged chair, relies on pillars such as China's reopening and low unemployment. However, these legs have shown some instability, which has shaken up the chair. On the other hand, the presence of strong consumer data and the growing influence of AI contribute to the dollar's positive outlook. Despite lingering talks of volatility and recession, the dollar is positioned favorably for growth during the summer months. When reviewing my A.I. data I am seeing similar results with one symbol in particular, and one I am going to be adding to my portfolio... [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. All rights reserved.  If you want to unsubscribe from all or some of our emails please click this [link]( [Facebook]( [Twitter]( [Instagram](   In order to unsubscribe from this mailing list, please click [here](