$CVX to Jump Due to Middle East Instability

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] October 22nd, 2023 | Issue 205   Hello Trader In our latest book club meeting, we explored a fascinating concept that has a profound impact on both our perceptions and our trading decisions: Prospect Theory. It was an eye-opening discussion that seamlessly connected the dots between cognitive psychology and the complexities of the financial markets.  Our book club, with its monthly rendezvous, offers a unique backdrop for intellectual exploration. This time, we delved into "Thinking, Fast and Slow," a 2011 book by psychologist Daniel Kahneman. Within the pages of this insightful work, Kahneman distinguishes between "System 1," our quick, emotional, and instinct-driven thinking, and "System 2," the slower, more methodical, and rational thought process.  The real revelation happened when we connected these cognitive insights to the trading world. Prospect Theory, as the book highlighted, often leads us to make seemingly irrational choices in the financial markets. Take, for example, the common trader saying: "It's not a loss until it's sold." How often have we clung to a losing trade, hoping for a miraculous turnaround, only to swiftly exit profitable trades, only to watch the stock soar higher after we've bailed out? It all boils down to emotions, as Prospect Theory astutely points out - the pain of loss far outweighs the joy of equivalent gains. [AI-Powered Super Stock Trader Put Yourself on The Fast Track to Success… Click Here to Learn More]( Let's illustrate this with a simple example: Receiving $50 brings us happiness, but being handed $100 and then having $50 taken away leaves us feeling decidedly sad. This emotional asymmetry underlines why traders often behave the way they do.  So, here's the million-dollar question: How do we shield ourselves from emotional-based thinking while trading? This is precisely why I created Yellowtunnel, where an impressive three out of four trades result in success. The key takeaway here is remarkably straightforward: we may not control market fluctuations, but our responses to them are within our control.  The path to success in trading is twofold: stick to your meticulously crafted trading plan and diligently keep track of your target gains and losses. Furthermore, recognize the thoughts and emotions that can influence your decisions. Remember, losses can sting, but don't forget to savor your wins.  But let's dive deeper into the practical implications of all this psychology. How does Prospect Theory influence traders in the real world? The book offered a compelling example: when faced with the choice between a 100% probability of closing a profitable trade or waiting for a 50/50% chance of the stock continuing to rally, the majority of traders prefer the former, often cutting their potential gains short.  Conversely, when confronted with a losing trade, they seem to hesitate in taking the 100% probability of a loss and instead opt for the 50/50 chance of recovery. It's as if they momentarily forget the trader's maxim - "It's not a loss until it's sold." Traders cut their winners short and let their losers linger.  This intriguing behavior is a product of our innate risk aversion. We're naturally wired to avoid losses more vehemently than we desire gains. So, how can you tackle this challenge?  The first step is self-awareness. It's essential to understand the distinction between "System 1," our emotional and swift decision-making mode, and "System 2," the more contemplative but sometimes sluggish counterpart. Keeping a trading journal, analyzing the factors influencing your trading decisions, and assigning appropriate weight to them can significantly help. Also, make use of positive and negative visualizations to better manage your risk aversion.  For those eager to delve deeper, we encourage you to explore the live trading room recordings, where you can further immerse yourself in these critical concepts.  Prospect Theory may add layers of complexity to our trading decisions, but with knowledge, self-awareness, and practice, you can navigate the markets with a clearer mind. Keep an eye out for more insights in this month's newsletter as we continue to explore the intriguing connection between psychology and your portfolio. [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 $CVX to Jump Due to Middle East Instability In line with our sector focus on energy, we turn our attention to a specific stock poised for an upward trajectory. Our "Trade of the Week" spotlights Chevron Corporation (CVX), one of the world's leading integrated energy companies. Chevron Corporation (CVX) is a renowned multinational energy corporation with a substantial presence in the oil and gas industry. Known for its exploration, production, refining, and marketing of energy resources, Chevron stands as a stalwart in the sector, operating on a global scale.  With ongoing instability in the Middle East and the potential for escalating tensions, energy companies like Chevron are positioned for significant growth. As elaborated in the "CURRENT TRADING LANDSCAPE" section, ongoing conflicts in the Middle East have intensified concerns about the stability of global oil supplies. These concerns have profound implications for the energy sector, and Chevron, being a significant player in the industry, is poised to reap the benefits.  The recent interception of missiles from Yemen, coupled with the Israel-Hamas conflict, has injected a sense of uncertainty into the global oil market. The potential for disruptions in oil production and supply has made energy resources a sought-after commodity. This heightened demand, combined with fears of potential oil supply constraints, underlines the strong position of energy companies like Chevron. Furthermore, Chevron's extensive global operations, including exploration, production, refining, and marketing of energy resources, place it at the forefront of the industry. These multifaceted operations provide the company with diversified revenue streams and a competitive edge in navigating the complexities of the energy market. As a result, Chevron's stock is well-positioned to experience an upswing in the wake of escalating geopolitical concerns and growing demand for energy resources. And what’s even more compelling is that our A.I. appears to agree! Just take a look at CVX’s 10-day predicted data: By considering these factors, investing in CVX in the upcoming week represents a prudent move that aligns with the broader market dynamics. Chevron is, indeed, a compelling choice for investors seeking to capitalize on the current state of affairs in the energy sector. [Click here to read more about this week’s Power Trade pick…](     TRADE REVIEW In our never-ending quest to provide you with insights and strategies that can sharpen your trading prowess and provide winning trades, we’d like to highlight a recent standout from our Dynamic Power Trader service (DPT). Most of our trades can be seen in real time during our live trading room, and this week's live trading room session was no exception. For those of you who missed it, we highly recommend checking out the Wednesday recording of the live trading room[here]( – where we dissected a trade that showcased the power of timely action and strategic decision-making.  So, what's the buzz from this week's live trading room session? Well, let's talk about the DPT model's astute identification of a long opportunity in the ProShares Short S&P500 ETF ($SH). The trade, dubbed the "latest quick hedge," resulted in a commendable gain of 1% on that Wednesday. It's not always about hitting home runs; sometimes, these smaller gains can quickly add up and significantly bolster your portfolio.  But what sets our paid services apart from the free ones? The answer lies in the little things, such as receiving timely SMS messages that tell you precisely when to enter and exit a trade. It's these fine details that can make a substantial difference in your trading experience.  In a market where every tick counts, being in the right place at the right time can be the difference between a profit and a loss. We're here to make sure you have every tool at your disposal to seize the right moments. So, if you haven't already, don't miss our live trading room – they're packed with actionable insights that can sharpen your trading skills and book gains! [Click here to watch…](     (Advertisement) AI-Powered Super Stock Trader Put Yourself on The Fast Track to Success… Imagine having your own “Super AI Stock Trading System” carefully guiding you through the unexpected twists and turns of the market.  An advanced AI program that turns the threats of economic failures, global conflicts, and rising interest rates into unique profit opportunities!  All of this can be locked in for an extra special Charter $100 off discounted rate — that's 50% off the price of a regular membership. [Click Here To Learn More]( Vlad Karpel Chief Investment Officer/Founder (A portion of Yellow Tunnel sales will go to directly help the Ukrainian people)     CURRENT TRADING LANDSCAPE The U.S. stock market faced a challenging week with multiple selloffs, largely influenced by the onset of earnings season. Throughout the week, stocks trended downward. However, it was on Friday that the market was hit particularly hard, driven by concerns over the Israel-Hamas conflict and rising bond yields. These factors added to the existing worries and prompted a further decline in stock prices.  One of the key factors contributing to market unease was the yield on the benchmark 10-year Treasury note, which reached 4.925% during the week. It had briefly touched the 5% mark earlier, causing concern among investors.  On the brighter side, oil futures were on an upward trajectory, set for their second consecutive weekly gain. Gold prices also experienced a rise, primarily due to a U.S. warship intercepting missiles from Yemen, raising tensions in the Middle East. Investors were worried that an extended conflict could disrupt global oil supplies, particularly considering the significant roles played by Iran and Saudi Arabia in oil production. This led some traders to seek refuge in safe-haven assets like gold.  Geopolitical events, such as the Israel-Hamas conflict and the missile interceptions in Yemen, had a notable impact on financial markets. The concern over a potentially broader conflict and its implications on oil supply and prices was a major driver behind gold and oil price increases.  President Joe Biden's recent visit to Israel and his reaffirmation of support for the country played a role in the market's response, with questions raised about the origin of certain rocket attacks. Company-specific news also affected stock performance. Notably, SolarEdge Technologies faced challenges in the European market, leading to a significant reduction in its revenue estimates for the third and fourth quarters.  On the other hand, American Express reported better-than-expected third-quarter earnings and continued revenue growth. However, its stock experienced a decline. Regions Financial struggled in the third quarter, with earnings, net interest income, and revenue falling short of analysts' expectations.  Hewlett Packard Enterprise provided a cautious outlook, with adjusted earnings expectations for fiscal 2024 lower than analyst forecasts. Oil-field services company SLB (formerly Schlumberger) reported mixed results, with earnings exceeding expectations but revenue falling slightly short.  The financial markets faced a turbulent day, marked by a significant decline in stock prices and increasing concerns about bond yields nearing the 5% mark. The ongoing market turmoil has raised expectations for heightened volatility in the latter part of the year. While some experts anticipate interest rates to remain stable through January, geopolitical risks and reduced demand for treasuries are pushing long-term rates higher, echoing trends reminiscent of the Global Financial Crisis.  The Beige Book, providing insights into economic activity across the U.S., has become a focal point for the financial community. It indicates that economic activity has shown little to no change since the September report, with the U.S. economy exhibiting "stable" to "slightly weaker" growth. Despite inflationary pressures stemming from higher wages, rising oil prices, and insurance costs, companies have been unable to pass on these cost increases to consumers, leading to shrinking profit margins... [Click here to read more…](   SECTOR SPOTLIGHT A Strategic Play in the Energy Sector In this week's sector spotlight, we are diving into a strategic trading opportunity within the stock market, one that has the potential to yield promising returns based on the current market dynamics. Our AI system has identified a specific sector that appears poised to make substantial gains in the coming days. As we explore this sector in detail, we'll uncover the key factors driving its potential for growth and unveil the strategic insights that can guide investors toward a promising path. The Energy Select Sector SPDR Fund (XLE) is a renowned exchange-traded fund that offers investors exposure to the energy sector, encompassing major companies engaged in the exploration, production, and distribution of energy resources. These companies play an integral role in powering our world, providing the fuel and energy needed for industries and daily life. Given the current market conditions and the events, the energy sector is emerging as a compelling area for investment. The ongoing geopolitical turmoil, particularly in the Middle East, has raised concerns about the stability of global oil supplies. This, in turn, creates a favorable environment for energy-related stocks like XLE. The fear of potential disruptions in oil production and supply due to conflicts in the Middle East, combined with rising demand for energy resources, positions the energy sector as an attractive prospect for investors. As global tensions persist, the potential for increased oil prices and demand becomes increasingly evident. This is a powerful catalyst that can drive the growth of companies within the energy sector. [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](