HaiKhuu Daily Trading Report

Good morning, and happy New Year!!! Welcome to 2024, and welcome to what is going to be an extremely interesting time for the markets. New Year, New Me is currently a vibe as many retail traders are anticipating coming back to the markets as a result of their resolutions, which will be a phenomenal time for anyone who is actively trading and participating in the markets. Cryptocurrencies have made a new 52-week high, and $SPY hasn’t traded this high since late 2023.

$SPY is currently down significantly from the previous close of 2023, but we are still at a point of major significance and confidence, allowing us an opportunity to trade accordingly. I will warn you all that $SPY is currently testing the daily conversion line support, which could be the first of many major supports we test in the case of possible downside.

Be careful and cautious as momentum is slowing down. This could be a very easy bear trap before we push new 52-week highs, or this could be the start of a reversal.

Just remember that we were at this point TWO years ago and made an all-time high on $SPY right under $480 before the markets came crashing down. Just keep that in mind, tread lightly on these market conditions, and be smart in the process of everything.

Good luck trading this year, and let’s make 2024 an amazing year.

The updated $SPY daily levels are as follows:
Conversion Line Support: $472.69
Baseline Support: $465.45
Strong Psychological Support: $470
Daily Cloud Support: $438.95

Thoughts & Comments from 2023

2023 was a wild year for the markets; instead of talking about the last week like I typically do in this report, let me talk a little bit about 2023 and how crazy it was for the markets.

There were many opportunities that were available in 2023, and with momentum, we were not expecting to be the next “hyped” sector. We watched as many organizations, including $NVDA and $MSFT, hit new all-time highs and rallied significantly in the process.

$SPY started the year trading at $380 and displayed significant confidence from the beginning as organizations were trading at relative lows. We started 2023 with organizations like $NVDA trading at $140, $META trading at $120, and $MSFT trading under $250. In hindsight, this was the best opportunity we’ve seen since 2021 to load up on leaps on fundamentally solid organizations that were highly undervalued and capitalize on what was some insane bullish momentum throughout the year.

We watched as $SPY rallied approximately 9% at the beginning of the year to break back above $400 and retail at that level for multiple months until March 2023.

Markets were looking extremely strong while trading above $400 before we watched as SVB collapsed and caused a lot of uncertainty in the financial sector, but it allowed us some amazing opportunities to trade and load up on organizations like $JPM in the process.

Once the banking sector BS was finalized, we watched as $SPY continued to rally throughout the summer, pushing another 20% between March and the middle of the summer. $SPY made a relative high, trading right under $460 towards the beginning of August when the markets started to display relative weakness and started to come down throughout Q3.

Q3 was a difficult time for the markets as $SPY dropped approximately 10% from the top, trading at a relative low around $410, as organizations like $NVDA fell approximately 20%, and $TSLA fell 25%, but that was the craziest bear trap of the year.

At the end of October, $SPY was starting to show signs of a reversal from the bottom, and man did $SPY find a bottom.

In the final two months of trading in 2023, there was a significant amount of bullish momentum that was extremely hard not to capitalize on. Initially, there was some resistance and fighting on the way up as the markets were displaying weakness, but once there was a confirmation of a reversal from the bottom, it was hard to fight the momentum and trend as $SPY rallied and continued to make new 52-week highs in the process.

We made the official low of the year with $SPY trading at $377.83 and have an official 52-week high on $SPY trading at $477.55, almost up $100 from the bottom.

There was approximately a 16% rally within the final two months of 2023, and the 1-Year performance of $SPY is roughly 25%.

2023 was an amazing year for the markets, which provided us with many amazing opportunities to trade and realize a significant amount of gains in the process.

It was an honor trading with you all in 2023, and let’s see what 2024 has in store for us!

Thoughts & Comments for Today, 01/02/2024

Today should be another interesting time for the markets, and we will be talking about not only allocating today but general allocations for the markets in 2024.

To start off, I want to say to be careful and cautious while attempting to allocate into the markets. Many organizations are highly overvalued at this point, and there are reasons to continue to be bullish on many organizations, but it does not mean they are not overvalued. I’d be extremely cautious while attempting to allocate into any general organizations as a result of this display of weakness in the markets, but at the same time, I would also look to capitalize on the opportunities that are available.

There are many organizations that are fundamentally solid that are undervalued right now. Many of these consumer staple organizations have underperformed in comparison to $SPY, and it has been an extremely interesting time as a result of this. Many people have been sleeping on these organizations and assuming once there is a rotation out of these semiconductors and general higher-beta tech organizations, that people will start allocating into more fundamentally solid organizations that pay a consistent dividend and look to decrease general risk and exposure in the markets.

I would not suggest attempting to be hyper-bullish or bearish this year, but simply looking at the markets overall and assessing the situation prior to entering into anything.

Markets are starting to come down leading into 2024, which is not the best sign going into open, but we are not down enough to cause any major concern. The only concerning part about where we currently are trading, is simply the fact that we are down at major support. $SPY is actively testing the daily baseline support, and if we close under this level, it will be the first time we’ve traded under the daily baseline since the beginning of this rally starting in November and will be the first time we see any signs of confirmation of a reversal.

Hopefully, the markets will continue to move up and make a new 52-week high in the process of making new all-time highs, but we have to take this general market movement one day at a time.

Watch out for $SPY $465.45. Assuming we break below this level, we will see a confirmation of a reversal towards the downside as $SPY has broken below both the baseline and conversion line support and will display general weakness. Ideally, we do not get below this point, but until we get there and break below with confidence, I would not advise you to be overly bearish.

For my plans on allocating into the markets this year, my plans remain relatively the same as they always have been. My plans for navigating the markets are layered. The majority of my allocations, as normal will come in the form of actively scalping and day trading. I will look to capitalize on the shorter, quick movements in the markets when given an opportunity to do so, but be careful and cautious while only attempting to allocate when I have confidence in the markets. Outside of that general allocation, I will be looking to allocate long into the markets in organizations that I believe have significant upside potential and swing/invest into organizations I want to ride like $WMT, $KO, and $F, and the final part of my allocation plans for this year, is I want to sell significantly more premium in the markets. I believe there will be many great opportunities to capitalize on general market momentum and the premium that is provided in these conditions. I believe that many organizations are highly overvalued, and calls are priced accordingly. I want to capitalize on the premium that is provided via selling calls and look to sell CSPs once organizations have come back to reality and volatility has increased. One play I am very excited about is in the case that an organization that I believe is fundamentally solid, with a significant amount of upside potential, trades significantly lower on earnings and put premium has gone through the roof (Think $AI, last earnings), I will look to sell premium against the grain and take on some risk to collect a significant amount of premium in the process.

This is going to be a great year for the markets, so continue to navigate the markets accordingly, practice safe risk management, and make sure to maximize the potential to realize gains throughout the year.

If you want to watch any of my allocations, they will be posted live in the HaiKhuu Discord.

HaiKhuu Proprietary Algorithm Report:

Last week was a great week for the general performance of the algorithm. We ended the year strong with the base algorithm outperforming $SPY by a nice margin and the fundamental analysis in the long-term portfolio outperforming both $SPY and our technical analysis. It was a great way to end the year and I’ll have Asher compile a general report of the performance of last year to give us a good gauge of the general performance of the algorithm in 2023!

The results of last week are as follows:

Baseline:

$SPY: +0.27%

Our Results:

Long Term Portfolio: +0.47%
Base Algorithm: +0.4%
Market Neutral: +0.36%
Variable Market Neutral: +0.2%
Sector Neutral: +0.1%
Variable Sector Neutral: +0.05%

DISCLAIMER - This is not financial advice. Utilize these trades with caution. These predictions are generated via our proprietary trading algorithm without taking into account market conditions, news, or any external biases. This is not a signal to buy or sell any equities, and we do not guarantee success. Take these at your own risk.

My Personal Watchlist:

Note, just because something is on my watchlist does not mean it is a signal to buy or sell any equities

Watchlist:
$SPY, $AAPL, $COIN, $AMD, $NVDA, $TSLA, $BA

Position Opportunities:

Trade the market momentum
Take profit on positions
Limit your downside risk
Hedge your positions
Consider getting bearish exposure

LONG OPPORTUNITIES:

Long-Term Dividend - $GAIN / $JEPI
Long-Term Investment - $KO / $WMT
Long-Term Auto Sector - $F
Long-Term Speculation - $SOFI
Speculative Re-Entry - $DIS / $RIVN

Economic News for 01/02/2023

S&P Manufacturing PMI Final - 9:45 AM ET
Construction Spending - 10:00 AM ET

Notable Earnings for 01/02/2023

Pre-Market Earnings:

None Scheduled

After-Market Earnings:

None Scheduled

Wrap up

This will be an extremely interesting year for the markets. Look to take advantage of the opportunities that are presented to us. Don’t be overly aggressive, and be fluid with your directions and allocations in the markets not only today but throughout the entire year. There will be amazing opportunities to capitalize on the general market momentum, so do what you can to maximize your profit potential this year, look to make some smart allocations, and realize some gains!

Good luck trading, and let’s see what 2024 has in store for us!

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HaiKhuu Daily Report 01/02/2024