HaiKhuu Daily Trading Report

Good morning, and happy Monday! I hope you traders are ready for what is going to be a wild day and I hope you are excited about this week! The first week of the year was not favorable at all, but that does not mean 2024 will not provide us with opportunities to trade! $SPY is down slightly at the time of writing this report, and a door has flown off of a Boeing 737 MAX.

The FAA has grounded all Boeing 737 MAX-9s (Specific model) for safety issues at this time and is requiring that each airplane receive an inspection, impacting 171 planes. I would advise extreme caution if you are attempting to allocate into Boeing at this time, but I will talk about my personal game plans later on in this report.

We are still at the upper end of greed on the fear and greed index, which is an interesting spot. Please continue to be cautious in these market conditions as $SPY is not looking favorable and we are actively testing the daily baseline support.

Tread lightly on these market conditions, practice safe risk management, and look to take advantage of the opportunities that are presented to us. We are in a stock pickers market, so people who find good plays and follow the right momentum in the markets, will have a great time!

Good luck trading this week, and let’s watch as $SPY does here at daily support!

The updated $SPY daily levels are as follows:
Conversion Line Resistance: $471.84
Baseline Support: $465.45
Psychological Resistance: $470
Daily Cloud Support: $443.49

Thoughts & Comments from Last Week

Last week was an interesting way to start the year. It was a short week for the markets, and it was the first time we’ve seen some solid bearish momentum in the markets since 2023. The markets have been filled with bullish momentum that has been easy to capitalize on, but it is interesting to see that momentum start to slow down, and general sentiment is starting to shift. It was a tough way to start the year and was a rude awakening that made it extremely difficult to trade or realize any sort of significant gain, but it is the market conditions we are in, so either you adapt and grow, or unfortunately get stuck and realize losses.

To start the week off, markets were closed for New Year’s on Monday, and we started the week on Tuesday.

Tuesday, being the first trading day of the year had many people extremely optimistic to trade, but it was an extremely difficult day to trade. We were green on an intraday basis, but red overall. We started the year trading at $472.16, down from the previous close in 2023 of $475.31, and had an extremely confusing intraday movement as $SPY did move up, where we made the official high of 2024, trading at $473.67, but made a low of the day trading at $470.49, before rallying back up to end the day trading at $472.65, up roughly $0.50 from open, but still down significantly from the previous close in 2023.

Wednesday was a significantly worse day for the markets which made trading even harder as there was only slow continued bleeding throughout the entire day. $SPY opened the day down from the previous close, opening officially at $470.43, and moved up slightly early within the day before continuing to fall for the large majority of the day. There were no great opportunities to trade, and many people had an extremely difficult time capitalizing on these market conditions, mostly as everyone has been so comfortable with their general bullish momentum in the markets. We watched as $SPY continued to drop to make the official low of the day right before close trading at $468.17, and displayed weakness in the process, before recovering slightly, to end the day trading at $468.79, down approximately $4 from the previous close.

Thursday on the other hand, was straight up the worst day of last week. There were no good opportunities across the board as $SPY had the worst day we’ve seen in a while. $SPY opened the day slightly green from the previous close, opening at $468.30, and displayed a lot of strength early in the day, as $SPY was able to break above $470 and make the official high of the day trading at $470.96. This was a great time for the markets as we displayed a significant amount of strength in the process, but after making the official high of the day, we watched as $SPY reversed its trend and started to bleed. We watched as $SPY lost all of the gains that were incurred early in the day and watched as markets continued to come down for the entirety of the afternoon, making an official low of the day within the final minutes of the trading day, making the official low trading at $467.05, and recovering slightly to end the day trading at $467.28.

Friday was a good day for the markets with lots of opportunities to trade both the upside and downside at least, and provided us with multiple opportunities to play both directions. It was not a great day for the markets from a holistic standpoint, but it did at least provide traders with many many great opportunities. We started Friday off with $SPY trading at $467.44, up slightly from the previous close, and watched as $SPY went on to rip and rally throughout the entire morning, pushing $3 from open, to make the official high of the day trading at $470.44, making that the largest bullish movement we’ve seen this year, and it was a great time actively attempting to catch and ride that momentum. Many traders had ease trading early in the morning, assuming you were bullish on the day, but unfortunately, all good things come to an end, and that is what we saw. As the lunchtime lull was coming around and general volume started to decrease, we saw $SPY selling increase heavily, selling off all of the gains that were incurred early within the trading day. $SPY at one point even went red on the day, meaning it dropped $4 from the top, to make the official low of the day trading at $466.44. We did see a slight pop and quick recovery in the markets during the afternoon, which did provide us with an opportunity again to trade towards the upside, but everything did start to come down again towards the back half of the afternoon. There was a slight recovery going into close, where $SPY did end the week trading at $467.92.

We dropped roughly $7.40 last week, down approximately 1.5% throughout the entire week, and the markets made it extremely difficult to trade, but thankfully there were many opportunities to trade either direction and realize gains in the process. I hope you traders all did alright capitalizing on the momentum and opportunities that were available to us in the markets last week and realized gains in the process. Just know that if you were able to realize gains, and did not have an overall loss, I can say with confidence that you were able to outperform roughly 99% of all traders, which should be a major sign of confidence in your trading ability.

Good luck trading this week everyone, and let’s see what the markets have prepared for us today.

Thoughts & Comments for Today, 01/08/2024

Today will be another confusing time for the markets, so please prepare accordingly, and be extremely cautious in the process. I believe that many traders are going to have a lot of difficulties capitalizing on the market momentum today, and many more traders are going to incur a significant amount of losses as a result of today.

Watch out for the daily baseline support as that will be the level that many traders will be watching for an opportunity in the short term. In the case we break below that level, will be the first sign of a confirmation of a reversal. I will say that $SPY is still at a point of strength and that you should not be overly bearish in the markets, but it never hurts to get some bearish exposure in anticipation of a possible breakdown and sell-off in the markets.

Let’s just say it this way, we are going to see a large movement in the markets soon, but situationally, we can go either direction, and it comes down to general market sentiment, news, and evaluations.

Lots of companies are still heavily overvalued, but realistically, we also have seen a lot of blood in these mega-cap organizations over the previous week, and we do need to see some sort of recovery in the short term. This could be the possible “correction” that we’ve been “waiting for” before the markets pop up and give us confidence in a breakout towards the upside. If you want to play this possible play, just be cautious as there are a lot of risks that are involved, so just make sure to practice safe risk management.

If you are attempting to trade today, this is going to be one of those days to just make sure to follow the general market momentum, not fight the trend, and make sure to practice safe risk management.

The one play that I want to talk about right now, is Boeing specifically. At the time of writing this report, they are down 8%, and realistically I believe that this is only the beginning of selling as I’ve written this part of the report hours before most people have woken up. I am not expecting to see a significant movement back up, and realistically we will see a lot of irrational selling, which will provide us an opportunity to purchase $BA at an amazing price and realize some significant gains in the process. I would not advise attempting to scalp $BA today, simply for safety reasons. A lot of people are going to get hurt attempting to scalp $BA in both directions, and only a very few very lucky traders will be able to time out their positions perfectly. If you want to take on some risk, then allocating into $BA is going to be the move to watch for the day, but realistically, I would advise a significant amount of safety when it comes to Boeing. I am looking to wait approximately a week before loading up on $BA. I am waiting to watch to see how far we sell off, and then wait until we have found what we would consider a “bottom” before attempting to load up on equity. I think that this is going to realistically be a great allocation to hold, but it is just a matter of entering when there is a point of confidence, and holding that equity indefinitely. That is going to be a position that I look to add equity to and hold indefinitely. My ideal entry price on $BA is roughly $180-200, but I do not think that realistically we will see that.

For my allocations for the day, I am planning on looking into highly OTM CSPs on $BA. I think that realistically this is going to provide me with the highest return, with the lowest effort, and relatively minimal risk. This is not going to be a sexy play at all, but I will be looking for most likely the February monthly expiration contracts, around the $180-200 strike. It just depends on how much premium is available, and how much risk I am looking to take on. I will be looking to actively scalp and day trade throughout the day, but realistically, that will be relatively minimal allocations just to protect my bottom line at this time. In the case we see a breakout in the markets though, I will be looking to actively trade the momentum and the opportunities that are available to me.

As I said before, please just make sure to practice safe risk management and allocate into the markets accordingly today.

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 tough week for the overall markets. I am happy to see that despite $SPY underperforming on an intraday basis, we were able to watch as the long-term portfolio was able to generate a minimal amount of gains, but gains nonetheless, and that the base algorithm was able to outperform both the fundamental analysis that it was built on, and markets by a nice margin. Our neutral strategies were the move last week with the market neutral strategy beating out $SPY by almost 1%, but regardless, big win for the algorithm while market conditions were not optimal at all in any way shape or form.

The results of last week are as follows:

Baseline:

$SPY: -0.37%

Our Results:

Market Neutral: +0.60%
Sector Neutral: +0.45%
Variable Market Neutral: +0.31%
Variable Sector Neutral: +0.19%
Base Algorithm: +0.10%
Long Term Portfolio: +0.03%

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, $BA, $SOFI, $TSLA, $NVDA, $AMD, $AAPL

Position Opportunities:

Follow the market momentum
Take profit on positions
Limit your downside risk
Hedge your positions
Get some bearish exposure

LONG OPPORTUNITIES:

Long-Term Dividend - $GAIN / $JEPI
Long-Term Investment - $KO / $WMT
Long-Term Auto Sector - $F
Waiting To Enter - $BA / $AAPL
Speculative Re-Entry - $DIS / $RIVN

Economic News for 01/08/2024

NY Fed 1-Year Inflation Expectations - 11:00 AM ET
Fed’s Bostic Speaks - 12:30 PM ET
Consumer Credit - 3:00 PM ET

Notable Earnings for 01/08/2024

Pre-Market Earnings:

Commercial Metals (CMC)
Helen of Troy (HELE)

After-Market Earnings:

Accolade (ACCD)
Jeffries Financial Group (JEF)

Wrap up

This is going to be another confusing day for the markets. Watch out for the daily baseline support as the level to be cautious of. In the case that we break below this level, there will be a confirmation of a reversal towards the downside, but realistically $SPY is still strong, and is providing us with opportunities to capitalize on market momentum with relative ease. There is a chance that the markets break out from this point, but it is just a matter of which direction we ultimately go, and how to navigate those conditions both efficiently and effectively. Make sure to practice safe risk management at this time of confusion, and just allocate accordingly.

Good luck trading today, these market conditions are going to be difficult to trade, so make some smart decisions today!

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HaiKhuu Daily Report 01/08/2024