Secret Trade: Spy vs Spy vs AI

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] May 28th, 2023 | Issue 184   Hello Trader As the summer season kicks off here in Chicago, I couldn't help but reflect on a recent experience that perfectly encapsulates the importance of testing theories, checking sources, and looking at issues from all angles—a lesson that holds particular relevance in our current financial landscape.  As the days grew longer and the warm, sunny weather beckoned my friends and I decided to embrace an age-old tradition we love: the hot sauna followed by a plunge into a cold pool. The exhilarating sensation of the cold water enveloping our bodies prompted a thought-provoking question from one of our friends: "Is there any medical evidence to support the benefits of heat therapy?" As we’ve practiced in this tradition countless times, other than the passed down notion we all subscribe to that there are health benefits, do we really know if this practice is effective?  In our group, we have a friend who happens to be an orthopedic surgeon—a person who consistently challenges traditional medical approaches. As expected, his response was skeptical, asserting that there is no conclusive evidence to support the therapeutic effects of saunas, despite centuries of belief in their positive impact on cardiovascular health, blood pressure, arterial wall elasticity, and mental relaxation. Inspired by this conversation, I proposed a new approach to settle our friendly debate. Instead of arguing without any prior research, I suggested forming a club where we select a topic, conduct thorough research using reputable sources like Google Scholar, and present our findings to each other. It was a wonderful opportunity to expand our knowledge and challenge our preconceived notions.  During our inaugural club meeting, each of my friends presented on the chosen topic, drawing from research papers and scientific studies. However, our skeptical surgeon friend remained unconvinced, suggesting that the studies could be manipulated by companies with vested interests. Despite our best efforts to persuade him otherwise, he remained steadfast in his belief that there was no substantial evidence of medical benefit. This amusing situation served as a stark reminder of the importance of critical thinking and as well as alternative perspectives.  In the realm of finance, similar lessons hold true. As we approach the looming deadline on the debt ceiling negotiation, we cannot simply assume that a certain outcome will happen or that all parties will reach an agreement on time. The concept of "default to truth" comes to mind—a notion we've explored in-depth with works like "Talking to Strangers,” both in our book club and previous Power Trading Market articles. Just as my surgeon friend represents an extreme case on the skepticism spectrum, we must remain vigilant and skeptical when it comes to financial matters, avoiding blind faith in assumed outcomes.  This brings us to the current debt ceiling situation, which has a direct impact on the U.S. stock markets. As negotiations unfold and tensions rise, it is crucial for investors and individuals alike to remain informed, question assumptions, and consider the potential ramifications of a failure to reach an agreement. The financial landscape is often influenced by various factors and perspectives, and a comprehensive understanding is vital to make well-informed decisions.  In the following sections of this newsletter, we will delve deeper into the intricacies of the debt ceiling, explore its potential implications, and provide valuable insights to help us navigate this uncertain terrain. So sit back and embark on this financial journey with us, as we equip you with the knowledge and tools necessary to thrive amidst the ever-changing economic landscape.  Remember, just as we discovered through our sauna club experience, it is essential to challenge assumptions, seek diverse perspectives, and scrutinize the information we encounter. By doing so, we empower ourselves to make informed decisions and achieve financial success.  Stay tuned as we explore the intricacies of the debt ceiling issue and its potential impact on various aspects of the economy - as well as our latest symbol and sector of the week! [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 Palantir Technologies Inc. (PLTR) is a prominent American software company specializing in data analytics and artificial intelligence. Founded in 2003, Palantir has established itself as a leader in providing advanced analytics platforms to government agencies, commercial enterprises, and organizations across various industries - and has seen added interest in recent weeks. The company's software platforms enable users to integrate, analyze, and visualize data from diverse sources, helping them gain valuable insights and make informed decisions.  Palantir's expertise lies in handling large and complex datasets, making it a valuable player in industries such as defense, intelligence, healthcare, finance, and more. Its software solutions are designed to tackle challenges related to data integration, data security, and data-driven decision-making.  As for why Palantir may be considered a good buy, along with the latest A.I. boom, PLTR has established itself as a leading provider of data analytics software, with a strong presence in sectors where data analysis is crucial, such as government and defense. The increasing volume and complexity of data in various industries create a significant demand for advanced analytics solutions, which positions Palantir favorably for future growth.  Palantir boasts an impressive list of clients, including government agencies, Fortune 500 companies, and major organizations, which highlights its credibility and potential for long-term partnerships.The company's focus on data analytics, artificial intelligence, and machine learning places it at the forefront of technological advancements, allowing it to stay competitive and deliver cutting-edge solutions. While that is great, let’s review the A.I. data for PLTR. PLTR is currently trading between $13-$14 which sits near the top end of the symbol's 52-week range. Throughout the year, PLTR has continued to build new highs and with the latest rush on A.I. I expect to see much of the same. 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: When reviewing PLTR’s 10-day forecast, several encouraging signs appear. The symbol sold off some allowing more room for the upside while our A.I. data shows the symbol is due to rise in the first half of its 10-day forecast. The predicted data is due to update again after the market close and could see an even brighter forecast! When looking for reliable forecasts, I tend to look for symbols that show a steady vector that is one-directional... [Click here to read more about this week’s Power Trade pick…](     TRADE REVIEW Let's take a closer look at a recent trade that showcased the effectiveness of the Profit Accelerator Trader (PAT) services. Specifically, we'll delve into our trade involving $AVGO and how we were able to capitalize on elevated implied volatility to collect the extra premium. On Monday, the PAT model identified $AVGO as a promising opportunity to generate additional income by taking advantage of the heightened implied volatility. Implied volatility refers to the market's expectation of potential price swings in a stock, and when it is elevated, it often leads to higher option premiums.  To make the most of this opportunity, we initiated a position by purchasing $AVGO options. However, rather than simply holding the position, we employed a strategy known as selling out-of-the-money (OTM) premium. By selling OTM puts and call spreads, we aimed to collect premium and generate a return ranging from 0.5% to 1% by holding the position overnight.  It's worth noting that our preference for liquid names with weekly options available played a significant role in selecting $AVGO for this trade. Weekly options, with their short time to expiration (0 DTE options), tend to carry higher premiums due to the accelerated time decay. This presented an excellent opportunity for us to collect premium by selling options that were unlikely to be exercised by the expiration date.  Selling OTM puts and call spreads is widely recognized as one of the most popular strategies in a bear market. This strategy allows traders to benefit from the decline in stock prices while simultaneously mitigating risk and capitalizing on the increased premiums associated with heightened volatility.  One of the key advantages of the Profit Accelerator Trader services and YellowTunnel’s additional paid services is the ability to receive timely alerts via SMS messages. These alerts ensure that traders are promptly notified when it is appropriate to enter or exit a position. This timely guidance allows for more efficient decision-making and enables traders to capture potential profits effectively.  To gain further insights into our live trading room and experience real-time action, I invite you to watch Tuesday's recording of our trading session by following this link:[Live Trading Room Recordings](.  The recent $AVGO trade serves as a testament to the effectiveness of our strategies and the value provided by the Profit Accelerator Trader services. By leveraging market opportunities and implementing proven trading techniques, we strive to help our members achieve their financial goals.  Stay tuned for more trade reviews and valuable insights in the upcoming editions of Financial Insights, where we continue to explore opportunities, analyze market trends, and equip you with the knowledge to navigate the ever-evolving financial landscape. [Click here to review…](     (Advertisement) Join for a ONE-TIME fee that's less than the cost of 1 year!  The offer expires at midnight tonight Platinum Power Trader is the ultra-high-tech, limited-access, secret weapon that’s been helping savvy investors supercharge their trading.  Act today and join for a one-time access fee of just $1495. That’s $1,000 less than the regular annual fee! There’s only a modest $297 yearly maintenance fee. And remember: this is the exact same system that has helped me deliver triple-digit gains for more than 4 years. The exact same system that helps me boasts an 84.96% win rate.  And most importantly: this is the exact same system I am trading with every single day, plus: [This offer is only available until Midnight, so please act NOW before you miss out!]( - We alert you on exactly what you need to do, how to do it and most importantly, when to get out. My incredible to-date record is the result of a combination of algorithmic and fundamental analysis.  Platinum Power Trader is the only trading system you’ll ever need for timely buy/sell trading calls. Subscribe now at the discounted rate and never pay an annual subscription fee again.  Full 30-day guarantee: so if you are not completely satisfied, simply let us know within the first 30 days of your membership and we will promptly refund 100% of your subscription payment. [Again, this offer is only available until Midnight, so please act NOW before you miss out!]( Vlad Karpel, Founder & Chief Investment Officer (A portion of Yellow Tunnel sales will go to directly help the Ukrainian people)     CURRENT TRADING LANDSCAPE While major U.S. major indices were on track to finish in the red for most of the week, indices turned positive on Friday. Optimism surrounding the resolution of debt-ceiling discussions has fueled a sense of positivity among investors, according to the latest reports. As the markets eagerly await updates on the ongoing negotiations, another significant factor has emerged: the Federal Reserve's preferred inflation gauge indicating a rise in prices during April. This unexpected uptick in inflation has reignited concerns about the need for further measures to curb high prices. Against this backdrop, U.S. stock futures witnessed an early rise on Friday, as market participants remained attuned to developments on the debt ceiling front and awaited the Federal Reserve's preferred inflation metric. Source: barchart.com Going back to the start of the week, U.S. stocks had a mixed performance on Monday, with the S&P 500 and Nasdaq poised for gains while the Dow Jones lagged in negative territory. Investors eagerly awaited updates on the debt ceiling negotiations, setting the stage for a crucial week. Tech stocks, led by Nvidia's strong earnings, experienced significant gains as investors sought to capitalize on the momentum in the artificial intelligence sector.  President Biden's meeting with House Speaker McCarthy aimed to make progress on the debt ceiling talks as the June 1 deadline approached. Fed President James Bullard's announcement of two more interest rate hikes later in the year added to market focus, causing Treasury yields to rise.  Nvidia's impressive performance and positive revenue outlook boosted its stock price and had a spillover effect on other tech stocks, driving the Nasdaq index higher. However, Intel faced a decline as investors sold shares due to competitive concerns.  On Thursday, jobless claims slightly increased but came in lighter than expected. The first-quarter GDP growth rate was revised upward to 1.3%, surpassing economists' estimates and indicating stronger economic performance.  On Friday, markets opened with optimism regarding the resolution of debt-ceiling discussions. Tech companies continued to see shares rise as artificial intelligence fueled optimism within the sector. Broadcom, a semiconductor company, gained 8.8% after receiving a price target raise from analysts at Oppenheimer.  With this in mind, it is important to highlight that the VIX, often referred to as the "fear index," is currently trading around the $18 mark. This week, market sentiment will be influenced by the earnings reports of Lowe's Companies Inc., Zoom Video Communications Inc., and Nvidia Corporation. Traders are paying attention to both the resistance and support levels in the SPDR S&P 500 ETF, which can impact market dynamics. Given the potential for the market to exhibit a sideways trading pattern in the upcoming weeks, it is advisable to approach with caution and consider hedging strategies to protect positions. See $SPY Seasonal Chart below: In the midst of recent market activity, there were signs of moderate improvement in retail data, although the numbers remained high. Companies such as KSS and URBN exceeded expectations by effectively managing their inventories. On the other hand, the office real estate investment trust (REIT) sector experienced a fire sale, while weak data from China and declining commodities raised concerns in global markets, amplified by the strengthening DXY. LVMH's discounting of luxury goods in retail stores also contributed to the landscape.  While the prevailing narrative suggests a soft landing following China's reopening, the surge in the AI market, low unemployment rates, and strong consumer sentiment, uncertainties persist. The FXI, an exchange-traded fund tracking Chinese stocks, showed weakness, casting doubt on the pace of reopening in the region. Office REITs continued to face challenges, leading to fire sales. As volatility increases, it is expected to continue rising as we approach the summer season.  On the other hand, the AI market is experiencing a sugar rush, with notable impacts on companies like NVDA evident in their earnings calls. Volatility is finally on the rise and is likely to continue increasing as we head into the summer season. The market is currently going through a top building process across all indexes, and a pullback has already begun. The upcoming earnings calls and forward-looking guidance will determine the pace of this pullback, and investors are eagerly awaiting potential triggers such as the debt ceiling issue.  Furthermore, the 2-year and 10-year yields have dropped below multi-month support, with a particular focus on the 10-year yield reaching 3.5%. If the yield does not hold between 3.2% and 3.5%, it is highly likely that we have seen the market top for the next few months. In such a scenario, it is advisable for users to sell into any further rallies.  During market sell-offs, investors tend to buy gold, silver, the dollar, and treasuries (TLT). The market is reflecting a new recession theme, and it is clear that the bear market has resumed. The top building process has commenced, and it is unlikely that we will see new market highs this year. This process typically takes a few weeks to unfold, and a pullback is expected to start at the end of April or middle of May.  Small caps, IWM, banks, and industrials have shown a marginal bounce back from the recent sell-off. However, it is important to note that the market is currently supported by the gains of only 20 out of 500 companies in the SPY, indicating narrow leadership. As we enter the summer season, the market outlook is bearish, and equity markets are expected to be volatile. The best-case scenario is that the market reaches its bottom in the first half of the year. A major reason for this outlook is the likelihood of downward revisions to SP500 revenue numbers, which are not yet factored into current market levels.  In summary, U.S. stock indices saw gains due to progress in debt ceiling negotiations and strong tech stocks following Nvidia's earnings report. Economic data showed a slight increase in jobless claims and an upward revision to first-quarter GDP growth. However, global markets faced volatility due to concerns over the debt ceiling and other economic factors. As it stands, there is one sector and symbol that are of keen interest to me in the coming weeks - and my A.I. arsenal agrees! [Click here to read more…](   SECTOR SPOTLIGHT Going into the month of June, we turn our attention to a sector that has been generating significant buzz and attracting considerable investor interest. With advancements in technology and the growing demand for innovative solutions, this sector has captured the attention of market participants. Today, we shine the spotlight on a rapidly evolving industry that encompasses companies at the forefront of cutting-edge developments. From groundbreaking research to disruptive applications, this sector has the potential to reshape our future. Ishares Robotics and Artificial Intelligence ETF (IRBO) focuses on the dynamic and rapidly expanding field that focuses on the development and implementation of advanced robotic systems. Combining artificial intelligence, machine learning, and robotics, IRBO’s holdings include companies that look to create intelligent machines capable of performing complex tasks autonomously or in collaboration with humans. The IRBO industry encompasses a wide range of applications, including industrial automation, healthcare assistance, autonomous vehicles, smart manufacturing, and much more. With the potential to revolutionize various sectors, IRBO represents a significant technological advancement with promising implications for the future.  Just as we’ve seen this month, there is a buzz and rush surrounding A.I. related tech and companies. While the debt ceiling and additional volatility-inducing events will likely continue this summer, A.I. appears to be forming a strong safe haven.  If companies within IRBO are set to boom, then it would be prudent to identify a specific symbol within to profit from - and I believe my A.I. system and I have done just that. [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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