HaiKhuu Daily Trading Report

Good morning, and happy Wednesday! I hope you traders are feeling great and are ready for the day.

Market conditions have been tough on the first trading day of 2024, and we are under the daily conversion line support, which is not a sign of confidence to start off the new year, but there are going to be opportunities across the board to capitalize on this general market momentum. Please be careful and cautious navigating these conditions as market momentum is slowing down, and we are seeing the first signs of a possible reversal.

As I have been saying, do not be overly bearish in these market conditions, though, because this very easily could be a fake-out, but do not be overly bullish, either. Be fluid with your allocations today, and take general market sentiment on a trade-by-trade basis.

This is a point of confusion for many experienced traders and is difficult to navigate with confidence, so don’t be overly ambitious or overly confident.

Be careful, tread lightly, and practice safe risk management.

Good luck trading today, and let’s see what the markets have in store for us!

The updated $SPY daily levels are as follows:
Conversion Line Support/Resistance: $472.69
Baseline Support: $465.45
Strong Psychological Support: $470
Daily Cloud Support: $440.10

Thoughts & Comments from Yesterday, 01/02/2024

Yesterday was a tough day for the general markets. Thankfully, there were opportunities to trade, but it was extremely difficult to capitalize on those trades in real time with confidence. It was an interesting time, but many traders had difficulties navigating the conditions with confidence. Hopefully, you all did alright, but the large majority of individuals who were heavily allocated to major tech organizations were given a rude awakening to start the year off.

We started 2024 with $SPY trading down approximately $3 from the previous close in 2023, opening the day at $472.21. This was a terrible way to start the year and provided traders with a significant amount of difficulty as markets were below the daily support levels, flagging a lot of confusion in the process and many difficulties allocating with confidence.

We did watch as $SPY chopped around for the large majority of the morning, moving up slightly, to come down slightly, and we retained the open price on $SPY for the large majority of the day, seeing the first real breakout happen towards the beginning of the lunchtime session. During the lull, we did watch as $SPY started to trend up, giving us some hope as $SPY continually made new highs of the day, but unfortunately, it was not enough to cause us to go green for the day. $SPY made the official high of the day right after the lunchtime lull, trading at $473.66 and displaying relative strength as $SPY was above that daily conversion line support but still showing weakness as we were significantly red for the day.

Once the momentum was over and the official high of the day was made, there was significant selling towards the downside that remained for the large majority of the afternoon. $SPY only continued to fall and make new lows of the day leading into powerhour, where we made the official low of the day with $SPY trading at $470.49, dropping over $3 from the top, meaning $SPY was down almost $5 at the low from the previous close.

Thankfully, during power hour, market momentum did start to slow down and shift in our favor. $SPY continued to retain the level around the low of the day, and selling stopped occurring. For the large majority of power hour, we did not see any sort of significant market movement that we could have capitalized on.

The fun part all started within the final 15 minutes of the trading day. $SPY quickly went from testing the low of the day to ripping and rallying for the final 15, causing a lot of confusion in the process but allowing for $SPY to go green on an intraday basis and closing at the daily conversion line support/resistance area.

We ended the day with $SPY trading at $$472.65, recovering the majority of the losses that were incurred on an intraday basis, but still down $2.66 from the previous close, or down approximately 0.56%, with an intraday bullish movement of 0.1%.

Overall, it was an extremely tough day for the markets that did not provide us with many opportunities to capitalize on the momentum in the markets but presented us with opportunities to trade across the board. I hope you all were able to do alright and survived the market conditions of day one in 2024. It’s not a great feeling starting the year off with some relative weakness, but let’s continue to take these market conditions one day at a time.

Thoughts & Comments for Today, 01/03/2024

Today will be another interesting time for the general markets. There is a significant amount of weakness that is displayed in the markets right now as $SPY is down again during the pre-market session, but the bigger thing to watch out for is cryptocurrencies in general. There has been news that the spot Bitcoin ETF may be delayed, causing BTC to drop almost 10% during the pre-market session, but has been recovering since that news was released.

Retail traders, despite being comfortable in these market conditions, are going to get a rude awakening at open as a result of this sell-off. With cryptocurrencies falling, we are seeing selling across the board of general equities, and watching as semi-conductor organizations like $NVDA and $AMD fall heavily again during the pre-market session. At the time of writing this report, $AMD was down approximately $2.50, and $NVDA is down approximately $8.

This is not a good feeling going into open, but this could be an opportunity to capitalize on some cheap bullish exposure in case you are optimistic about these market conditions. As I said yesterday, this could be a bear trap that is building up, allowing us an amazing opportunity to load up on equities at a phenomenal price, or this could be the beginning of the end.

$SPY has broken below the daily conversion line support and is displaying weakness for the first time in approximately two months. I don’t want to be overly bearish or attempt to create fear and chaos, but this is just something you should simply consider in these market conditions, mostly if you are attempting to either allocate long into the markets or attempting to allocate simply to the markets.

Continue to be fluid with your allocations and directional sentiment in the markets. There is a lot of confusion right now and a lot of general discussion about whether the markets are going to continue to move up. Or are the markets finally done pumping, and will they start to come down?

Realistically, no one knows which direction the markets will head over the next couple of days, and if anyone says they know with confidence. They are lying.

The biggest thing you can do right now is to make sure you are practicing safe risk management and being fluid with your allocations. Don’t be overly bullish, don’t be overly bearish, and simply just follow the market momentum if you are attempting to trade.

For my allocations today, I will say that I do believe that this is a dip buying opportunity, allowing us a great opportunity to go long equities on an intraday basis. I realistically will be scalping and day trading towards the upside, but I will be careful and cautious in the process. But I do believe that this is going to be a great opportunity to capitalize on market momentum when there is fear. Obviously, I will limit my general exposure, and in the case, market momentum is not in my favor, I will look to cut those allocations relatively quickly in the process for general safety.

Just continue to be smart and safe in these market conditions. There will be many opportunities to trade in the markets today, it is just a matter of capitalizing on them and realizing gains in the process!

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

HaiKhuu Proprietary Algorithm Report:

Yesterday was a tough day for the general markets. Market momentum was not favorable and was extremely difficult to capitalize on in real-time, mostly from a buy-at-open-sell-at-close perspective. I am happy to see that our fundamental analysis did outperform by a significant margin in comparison to $SPY but underperformed in comparison to our technical analysis. It is unfortunate to see that our algorithm underperformed on a day that the fundamental analysis did well, but there is not much we can do or say about it, as the discrepancy between $SPY and the base algorithm was only approximately 0.2%. C’est la vie, and we will see how these systems perform today!

The results of yesterday are as follows:

Baseline:

$SPY: +0.10%

Our Results:

Long Term Portfolio: +0.25%
Market Neutral: +0.22%
Variable Sector Neutral: +0.08%
Variable Market Neutral: +0.07%
Sector Neutral: +0.02%
Base Algorithm: -0.11%

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, $WMT, $SOFI, $AMD, $NVDA, $MSFT, $AAPL, $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
Speculative Re-Entry - $DIS / $RIVN

Economic News for 01/03/2024

Fed’s Barkin - 8:30 AM ET
Redbook YoY - 8:55 AM ET
Job Openings - 10:00 AM ET
ISM Manufacturing - 10:00 AM ET
FOMC Meeting Minutes - 2:00 PM ET

Notable Earnings for 01/03/2024

Pre-Market Earnings:

Unifirst (UNF)

After-Market Earnings:

Cal-Maine Foods (CALM)
Simulations Plus (SLP)
Resources Connections (RGP)

Wrap up

This should be an interesting day for the markets that will provide us with many opportunities to trade and realize a significant amount of gains in the process. Be smart and practice safe risk management, but continue to look out for opportunities to trade and realize some gains. There will be many trades that will present themselves in these conditions, mostly as there is confusion in the short term. Follow the market momentum, and make the most out of the opportunities that present themselves today!

Good luck trading, and let’s see what the markets have in store for us today!

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HaiKhuu Daily Report 01/03/2024