HaiKhuu Daily Trading Report

Good morning, and happy Friday! I hope you traders are prepared because, wow, this is going to be an interesting first week of the year for the markets. $SPY is down at the time of writing this report, and we are actively testing the daily baseline support. Please be careful and cautious in these market conditions as many traders will have a significant amount of difficulties and will be realizing a significant amount of losses as a result of this. Be careful, practice safe risk management, and don’t be overly bullish or bearish. Simply follow the market momentum and look to realize gains where possible.

Watch out for the daily baseline support on $SPY, as that will be the level that many traders will be actively watching today.

Good luck trading today, and let’s end this week on a high note!

The updated $SPY daily levels are as follows:
Conversion Line Resistance: $471.60
Baseline Support: $465.45
Psychological Resistance: $470
Daily Cloud Support: $442.52

Thoughts & Comments from Yesterday, 01/04/2024

Yesterday was an extremely tough day for the markets. In hindsight, there was some solid bullish momentum we could have very easily capitalized on, and there was some bearish momentum that would have been easy to capitalize on. But in real-time, it was difficult to allocate into the markets with confidence and difficult to short the markets with confidence. It felt like yesterday was a repeat of the general movement on Wednesday and was just another very tough day to trade.

We started the day off with $SPY opening slightly down from the previous close, opening the day trading at $468.35, and had some strong bullish momentum from the get-go.

$SPY quickly rallied to break above the $470 resistance level and continued to move up going into the lunchtime lull, where we made the official high of the day trading at $470.96, rejecting the $471 level, and as the lunchtime lull came to an end, we watched as $SPY start to come down as selling volume increased heavily.

The afternoon was an unfortunate time for anyone who was attempting to be bullish on $SPY because we only continued to move down. Initially, the selling was tough as $SPY broke through $470, and it was worse as we continued to come down in the early afternoon, but thankfully, we were able to remain green on an intraday basis and retain being green for the overall day.

But during the back half of the afternoon, is where things got worse, extremely quickly. The bearish momentum picked up, $SPY went black for the day and continued to fall in the process. There was no solid bullish momentum you could have capitalized on outside a quick tiny movement up in $SPY, and it genuinely was a terrible time for anyone who was bullish in the markets.

We continued to sell off into close, making the official low of the day into close, with $SPY making the low of the day trading at $467.05, and ending the day trading at $467.28, down $1.51 for the day, or down approximately 0.32%, with an intraday bearish movement of down 0.22%. It was a hard day for active traders to realize gains, but it at least was a consistent day if you attempted to follow the general market momentum.

I do think it is interesting seeing the ranges on $SPY start to expand as more volume is coming back into the markets after the holiday season, but it is making it difficult to buy consistently and day trade in the process unless there is a favorable movement for your position.

Let’s see what the markets have in store for us today and do what we can to maximize the opportunities that are available to us!

Thoughts & Comments for Today, 01/05/2024

Today is going to be a difficult day to gauge general market sentiment, and will be genuinely a coinflip on the direction we ultimately take. At the time of writing this report, we are testing the daily support on $SPY, and are displaying signs of weakness, but at the same time, this could be an interesting bounce opportunity for the markets.

The biggest thing for today, is practicing safe risk management, and allocating accordingly in the markets. Simply follow the momentum, and do not fight the trend.

I believe that there is an extremely good chance that we bounce here off of the daily support as despite $SPY being down during the pre-market session, we are displaying a significant amount of strength that could be very easily capitalized on and generate some bullish momentum for the markets.

But, at the same time, assuming we are break below the daily baseline support, and are holding under that level, that will be a confirmation of a reversal towards the downside, where general market momentum and sentiment in the markets will be bearish, leading to lots of people having an extreme amount of difficulty allocating into the markets with confidence as there is a confirmation of bearish momentum in the markets.

Do not be overly ambitous with your allocations today because I do believe there will be a significant amount of chop making trading extremely inconsistent, but will provide us with many phenomenal opportunities to trade across the board.

Continue to be careful in these market conditions, and look to take on some risk and exposure in these market conditions, because we will realistically see an interesting move in the markets today. One interesting play, would be going long $SPY, with a stop below the daily baseline support. In the case that $SPY drops from this point, you are talking about under $1 in risk, but realistically, in the case $SPY decides to break out, that could be upwards of $5-6 in upside potential.

So, that is obviously not financial advice and you should highly consider your own plays, but it could be an opportunity to look out for, mostly if you are bullish in these market conditions, and are looking to take on some risk in the process.

For my personal allocations today, I am not planning on making too many active positions throughout the day. I am interested in getting some bullish exposure at open with some 0-DTE ATM $SPY calls, but with the weakness that is being displayed in the markets, I am not comfortable or confident in heavily allocating into these conditions, mostly with the inconsistencies that are going to be in the markets making navigation difficult. I will stop out of those 0-DTE calls assuming that $SPY does break below the daily baseline support, but that is risk and exposure that I am willing to take on, because of the risk to reward opportunities. The biggest thing for me though for the day, is I want to sit on my hands and watch how $SPY reacts here towards the daily baseline support. In the case we start breaking down, I do want to stop out of those calls and get bearish allocations, but it is just a matter of my personal confidence in these market conditions and how markets react.

Please just continue to be smart and safe in these market conditions, mostly today as many traders are going to be in a state of confusion.

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

HaiKhuu Proprietary Algorithm Report:

Yesterday was another tough day for both $SPY and our algorithms. $SPY had a difficult time but thankfully our systems slightly outperformed $SPY. The performance of both the long-term portfolio and the base algorithm remained the same which is interesting that that happened, but its nothing spectacular. Both beat out $SPY by a total of 0.02% which honestly is just a rounding error and nothing that brings confidence.

The results of yesterday are as follows:

Baseline:

$SPY: -0.22%

Our Results:

Sector Neutral: +0.15%
Variable Sector Neutral: -0.05%
Market Neutral: -0.09%
Variable Market Neutral: -0.17%
Long Term Portfolio: -0.2%
Base Algorithm: -0.2%

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, $SOFI, $QS, $X, $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
Long-Term Auto Sector - $F
Speculative Re-Entry - $DIS / $RIVN

Economic News for 01/05/2024

Employment Report - 8:30 AM ET
ISM Services - 10:00 AM ET
Factory Orders - 10:00 AM ET
Durable Goods - 10:00 AM ET
Fed’s Barkin Speaks - 1:30 PM ET

Notable Earnings for 01/05/2024

Pre-Market Earnings:

Constellation Brands (STZ)
Angiodynamics (ANGO)
Greenbrier Companies (GBX)

Wrap up

This is going to be an extremely interesting day for the markets as a result of the current market conditions and confidence. Continue to practice safe risk management and protect your bottom line, but look to realize gains when given an opportunity to do so, and have some fun in the process. Let’s end this week strong and realize some gains today!

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

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HaiKhuu Daily Report 01/05/2024