$VZ: Calling for Big Payout

see the trade of the week inside... You receive this email, because you signed up to get email from YellowTunnel newsletter on 08/07/23.  If you no longer wish to receive any emails from YellowTunnel, please use the "Unsubscribe" link towards the bottom of this email. [Image] October 29th, 2023 | Issue 206   Hello With the start of earnings season officially here, big tech giants have unveiled their financial reports this week and all eyes in the financial world are turning to the upcoming Federal Open Market Committee (FOMC) meeting. Amidst this anticipation, I recently found myself engaged in a captivating book club discussion centered around Daniel Kahneman's "Thinking, Fast and Slow” which once again had me seeing strong connections to the financial world. The intriguing "Endowment Effect.” As we explored this cognitive phenomenon, it became increasingly clear how it influences our financial decisions, particularly in the ever-volatile world of trading. Let's dive into this fascinating connection to uncover the valuable insights that can enhance our financial decision-making in the market.  Kahneman's "Endowment Effect" is a simple yet powerful idea: we tend to overvalue items we've owned for a significant period over items we’ve held for shorter periods. Sound familiar? Think about any type of memorabilia you may hold, old baseball cards, for example, collecting dust in your drawer. Over time, it's easy to convince yourself it's worth a small fortune, even if it's just a piece of cardboard from your childhood. You become emotionally attached to it and ascribe it a higher worth than it truly holds. However, as Kahneman wisely pointed out, in reality, it's the marketplace, not your emotional bond, that determines the actual value of that baseball card.  Now, let's translate this notion to the realm of trading. Consider a stock you've held for an extended period. Amidst market fluctuations, you may start to believe it's more valuable than its actual worth. Your emotional attachment clouds your judgment, leading to decisions based on sentiment rather than rational analysis. You're essentially "married" to your stock, much like the cherished baseball card. [Platinum Power Trader 30 DAY RISK-FREE TRIAL Click Here to Learn More]( To break free from this psychological web, understanding your decision-making process and risk aversion is paramount. Kahneman's two-system model, comprising System 1 (emotional and rapid) and System 2 (analytical and slower), becomes highly relevant here. System 1 often dominates our choices, but it can lead us astray. To counter this, consider maintaining a trading journal, analyzing various inputs into your decisions, and assigning weights to them. Additionally, use positive and negative visualizations to guide your choices.  Now, let's delve deeper into the financial lesson. Before you even step into a trade, it's essential to establish a well-defined stop-loss and target gain strategy. This simple step can make all the difference in your financial well-being. When it comes to risk, always stick to risking the same amount on every trade. This consistency ensures that a losing trade doesn't morph into a long-term investment.  In essence, the connection to finance is crystal clear: breaking free from emotional bonds and unwarranted attachments is a cornerstone of sound financial decision-making. Base your choices on careful analysis and prudent risk management, and you'll be better equipped to navigate the unpredictable waters of the trading world. Remember, in the financial realm, it's the marketplace that ultimately determines value, not your sentimental attachment.   TRADE IDEA OF THE WEEK $VZ - Calling for Big Payout Now, let's move on to our Trade of the Week, featuring Verizon Communications (VZ). Verizon Communications, one of the largest telecommunications companies in the United States, is a household name. The company offers a range of services, including wireless communication, broadband, and digital media. With a solid track record and a strong presence in the telecom industry, Verizon has consistently delivered value to its shareholders.  Given the positive sentiment surrounding the telecommunications sector, now is an opportune time to consider investing in VZ. The recent performance of tech and telecom companies, as highlighted in our article, signals growth potential in this sector. Verizon, being a key player, is well-positioned to capitalize on this trend. In addition, the increasing demand for 5G technology and connectivity services bodes well for the company's future earnings. Additionally, the tech sector's resilience, as demonstrated by robust earnings, has created a positive ripple effect on related industries, including telecommunications. Verizon, being a prominent player in the telecom industry, benefits from the overall strength and stability of the tech sector. This means that Verizon is better positioned to weather market fluctuations, offering investors a sense of security in their investments.  The fact that tech giants like Amazon.com and Intel have reported strong earnings is indicative of the health of the broader technology ecosystem. This strength is likely to translate into increased demand for telecommunications services. As more people rely on technology for work, entertainment, and communication, companies like Verizon stand to benefit from this growing need for connectivity.  The rollout of 5G technology continues to be a significant growth driver for the telecommunications sector. Verizon is a leader in the 5G space, and the ongoing expansion of its 5G network positions it well to capitalize on this transformative technology. With the potential for faster and more reliable wireless connections, Verizon is poised to attract more customers and generate higher revenues.  The telecom sector, by its nature, is relatively stable, even in the face of economic uncertainties. The essential services it provides, such as wireless and broadband communication, are in constant demand. This inherent stability acts as a hedge against market volatility, making Verizon a compelling investment choice for risk-averse investors. Furthermore, as we continue to navigate a market filled with uncertainties, having a portion of your portfolio in a relatively stable sector like telecommunications can serve as a prudent hedging strategy - and our A.I. agrees! Just take a look at our 10-day Predicted Data for VZ: In summary, the confluence of a stable tech sector, solid earnings reports, the growth potential of 5G technology, and the stability offered by the telecommunications industry make it an excellent time to consider investing in Verizon Communications (VZ). This well-established company is likely to deliver both stability and growth in your investment portfolio in the current market environment.  This week, I’ll be adding $VZ to my portfolio! [Click here to read more about this week’s Power Trade pick…](   TRADE REVIEW This week, we had a standout moment as we ventured into the world of shorting the stock market, specifically the QQQ, Invesco’s Nasdaq QQQ ETF, a trust that includes some of the big players in tech. Sourced from our powerful Dynamic Power Trader (DPT) services, we dived into this trade with confidence during our live trading room sessions this week.  The DPT model, renowned for its precision in identifying trading opportunities, brought our attention to shorting the QQQ, a decision that would ultimately yield fruitful results. I found this opportunity so compelling that I initiated not just one but two short positions on QQQ within the same week!  What's the key differentiator when you're part of our paid services? It's the privilege of receiving timely SMS alerts that tell you precisely when to enter and exit the trade. This feature can be the game-changer between a successful trade and a missed opportunity. For those who were there with us, whether watching our live trading room recording or subscribed to our SMS alerts, it was a rewarding experience. Our community not only observed these profitable trades but actively participated in them, turning the insights and strategies discussed in the live trading room into tangible results.  The link to the live trading room recordings is your gateway to a treasure trove of wisdom, where we dissect trades, explore market movements, and share insights that can guide your trading journey. For those eager to see the recent QQQ trades in action, check out our live trading room recordings[here](. [Click here to watch…](     (Advertisement) Join for a ONE-TIME fee that's less than the cost of 1 year! Plus the X-TRA $300-Off Offer Expires Midnight Tonight. [Platinum Power Trader]( is the ultra-high-tech, limited-access, secret weapon that’s been making fortunes for select, savvy investors.  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 boasts a more than 75% win rate and an 86% win rate during these volatile times.  And most importantly, this is the exact same system I am trading with every single day, plus: - 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 for one year at the discounted rate and never pay an annual subscription fee again, plus receive an extra $300 off if you respond today.  Full 30-day guarantee: 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 X-TRA $300-off offer is only available until midnight, so please act NOW before you miss out!]( Vlad Karpel Chief Investment Officer/Founder (A portion of Yellow Tunnel sales will go to directly help the Ukrainian people)     CURRENT TRADING LANDSCAPE After a week of turbulence, U.S. stocks found some solace, largely powered by strong tech earnings. On Friday, the stock market saw positive momentum, driven by solid earnings reports from Amazon.com and Intel. Still, the S&P 500 and Nasdaq Composite closed the week in the red.  The latest round of earnings reports showcased the resilience of tech giants and revealed the challenges facing the automotive industry. Amazon.com, a tech and e-commerce behemoth, delivered an impressive third-quarter performance. The company reported earnings of 94 cents per share, significantly surpassing the 58 cents consensus among analysts. Sales for Amazon rose by 13% from the previous year, reaching an impressive $143.1 billion. Of note, Amazon Web Services, a crucial component of the company's business, reported a 12% revenue increase.  Looking ahead, Amazon anticipates a positive fourth quarter, largely in line with analysts' forecasts - these strong results translated into an 8.4% surge in Amazon's share price, reflecting investor confidence in the company's continued growth and profitability.  In the semiconductor industry, chip maker Intel also released a robust set of earnings results for the third quarter. Their adjusted earnings exceeded expectations, and the company provided an optimistic profit outlook for the fourth quarter. Additionally, the announcement that Intel has been attracting more customers for its chip manufacturing services had a significant impact, resulting in a remarkable 9.4% increase in the company's stock price.  In contrast, the automotive industry faced challenges, as exemplified by Ford Motor's third-quarter earnings report. The company's earnings came in weaker than expected, largely due to a labor agreement with the United Auto Workers that was recently reached. Notably, Ford's electric-vehicle division reported a loss of $1.3 billion; shares of the automaker declined by 8.5%, signaling concerns about the competitive and financial hurdles that automakers are grappling with in the evolving landscape of electric vehicles and shifting consumer preferences. Capital One Financial, a major player in the banking industry, provided a bright spot with their third-quarter earnings exceeding estimates. The bank experienced a notable 11% rise in its stock price. One of the key drivers of this positive performance was an increase in interest income, indicating a strong financial position for the bank. Chevron reported lower-than-expected earnings, while Exxon Mobil's profit declined from the previous year.  Apart from earnings, this week’s key economic report shed light on inflation. In September, U.S. inflation stood at 3.7%, a decline from the previous year, according to the Federal Reserve's preferred price-growth measure. This declaration has significant implications for future interest rate decisions.  The core personal consumption expenditures index, excluding volatile food and energy expenses, met economists' expectations at 3.7%. While this stability is reassuring, the monthly data revealed an uptick, with a 0.3% increase in September, up from 0.1% in August. The overall PCE inflation rate, accounting for food and energy, remained steady at 3.4% year over year in September. Monthly headline inflation mirrored August's pace at 0.4%. Notably, energy prices rose 1.7% month-to-month but fell 0.1% from a year ago, while food prices increased by 0.3% month-over-month and 2.7% from the previous year.  These inflation trends varied across sectors. Services saw a 4.7% increase year-over-year, reflecting strong demand, while goods expenses rose by 0.9%.  The data also highlighted robust consumer spending in September, up by $138.7 billion or 0.7%. Services, including international travel, flights, and healthcare spending, played a significant role.  While inflation cools relative to the previous year, strong consumer spending introduces complexity to the Federal Reserve's mission and policy decisions. The balance between curbing inflation and supporting economic growth remains a central concern for both policymakers and investors.  U.S. markets faced a challenging week with concerns about increased market volatility. The 10-year Treasury yield briefly surpassed 5%, causing initial market jitters. The Israel-Hamas conflict and global economic trends, including slowing global demand and interest rate uncertainties, contributed to market fluctuations... [Click here to read more…](   SECTOR SPOTLIGHT A Strategic Play in the Energy Sector In our Sector Spotlight this week, we're turning our attention to an industry that has been quietly positioning itself for growth amidst the recent market volatility. The latest batch of earnings and the upcoming Fed decision is positioning this sector for an easy path higher in the coming weeks. Let's delve into a promising sector that presents an intriguing opportunity.  The iShares U.S. Telecommunications ETF (IYZ) offers investors exposure to a diversified portfolio of U.S. telecommunications companies. This exchange-traded fund tracks an index of domestic telecom firms, providing a convenient way to invest in this sector as a whole. Among its top holdings are well-known industry giants like Verizon Communications, AT&T, and T-Mobile. Considering the current market landscape, investing in IYZ appears to be a prudent move. The sector it represents has shown resilience, even during times of economic turbulence. As highlighted in our recent article, the tech and telecommunications sectors have displayed robust earnings, contributing to the overall stability of the market. Furthermore, with the ever-increasing demand for connectivity, especially in an increasingly digital world, the telecom sector is well-positioned for continued growth. Telecom companies often provide essential services that remain in demand, regardless of economic conditions. This inherent stability, combined with the potential for increased growth due to expanding 5G networks and the constant evolution of communication technology, makes IYZ an appealing investment choice. By allocating a portion of your portfolio to this sector, you can potentially benefit from its steadiness and growth potential in the coming months. [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...](   [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.   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). 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