HaiKhuu Daily Trading Report

Good morning, and happy Friday! This has been a tough week navigating the markets, and this is just a fair reminder that the markets are CLOSED on Monday, for Martin Luther King Jr. Day. Markets are down slightly during the pre-market session, but we are not down enough to cause any significant shift in general sentiment. Watch out as many people are going to generate both realized and unrealized losses in these market conditions. $SPY is still strong but is displaying short-term weakness. Tread lightly on these market conditions, make sure to practice safe risk management, and limit your downside risk.

There is both major economic news and highly anticipated banking earnings today, so expect to see some turbulence in the markets as a result.

This is going to be a confusing day for the markets, so prepare accordingly, and let’s see what the markets have in store for us.

Good luck trading today. Let’s end this week strong and have a great time.

The updated $SPY daily levels are as follows:
Conversion Line Support: $472.28
Baseline Support: $466.22
Strong Psychological Support: $470
Daily Cloud Support: $446.22

Thoughts & Comments from Yesterday, 01/11/2024

Yesterday was a difficult day for the general markets. There were many opportunities to play both directions and many opportunities to have an unfortunate time and realize losses. We saw a new 52-week high on $SPY and had an extremely wide intraday range. $SPY had a $6 range from the high to the low, and many traders got wiped out in between. It was an unfortunate time for some, but an extremely profitable time for others.

We started the day during the pre-market session with CPI data coming back, causing the markets to drop, but watched as the markets recovered between the news drop and market open. $SPY opened the day trading at $477.53, right below the 52-week high, and moved up to make the official high of the day, and new official 52-week high trading at $478.11. Market conditions were looking strong around open, but were extremely difficult to allocate into with confidence.

After making the official high of the morning, we watched as $SPY did continually drop leading into the lunchtime session, where $SPY dropped almost $6 in the process, to make the official low of the day trading at $472.26. This was an extremely difficult time for the markets, but it provided us with an amazing opportunity to load up on both equities and contracts at the bottom, but actively tested many bulls in the process.

$SPY did slow down during the lunchtime session where selling was minimized, but we did watch as volume started to pick back up, people were actively purchasing in the process, creating bullish momentum.

The markets quickly recovered in the afternoon, and even at one point went green again for the day, making a relative high trading right below $477, recovering the majority of the losses that were incurred early in the morning, and provided many traders with an amazing opportunity to go long in the markets and realize a significant amount of gains.

The final hours of the trading day were relatively insignificant as $SPY did drop slightly but in comparison to the selling we saw in the morning, it was relatively minimal, where we ended the day with $SPY trading at $476.35, down $0.21 on the day, or down 0.04% overall. The interesting thing about the movement, is if you only look at the overall movement for the day, you would say that it was a relatively uneventful day with minimal movement in the grand scheme of things. But if you look at the intraday movement, $SPY dropped $6 from the top, and recovered $4 in the process. There were many great opportunities to capitalize on the bearish momentum in the markets, and there were many great opportunities to capitalize on the bullish momentum in the markets.

Hopefully, you all were able to come out of yesterday unscathed, and are prepared for what should be some confusing movements in the markets today.

Thoughts & Comments for Today, 01/12/2024

Today is going to be an extremely difficult day to navigate. With many organizations displaying weakness in the short term, I would advise extreme caution if you are attempting to allocate long in these market conditions. Many traders are going to realize losses in the markets today, but there will be opportunities presented by many organizations. Just continue to watch out as $SPY tested major daily support yesterday. If market conditions are not optimal and perfect today, we can very easily see a repeat of that motion.

We do have a lot of potential for the markets to move up today, but it all will come down to the movement we see during the pre-market session and the sentiment that will be active in the markets.

I have the same sentiment for market conditions as I had yesterday. Market conditions are strong in the grand scheme of things, but we are displaying short-term weakness. We can very very easily move up and push a new 52-week high as we are edging closer and closer to an all-time high on $SPY, but I would not be overly ambitious in these market conditions, as even though we have confidence in the markets, we are still displaying that short term weakness.

In the case that we break down, be extremely careful and watch out for the daily support. We can easily break down to that level and create fear and panic in the markets, increasing the selling across the board. We are seeing the mega-caps holding up the markets right now, which is a good sign in the short term, but if we start to see a rotation and selling, specifically out of $MSFT and $NVDA, we are in a world of hurt. People can easily capitalize on the short-term opportunities by shorting the markets or getting some puts, but it is extremely difficult to be confident in being bearish in these market conditions, mostly as $SPY is displaying this level of general strength.

If anything, look out for opportunities to scalp and daytrade towards the upside once an organization has started to sell off, but is showing signs of reversal on an intraday basis. This will be the easiest way to capitalize on this market momentum. Just make sure to set a stop in place when attempting to trade, and make sure to limit the risk that is generated in these market conditions, as many people will have an extremely difficult time.

Just to remind people, taking off a losing play is still a win, because you’d rather lose small and move your position into something that will perform, versus watching a losing play continue to lose and average in, tying up more capital and wasting time watching a position that is not moving in your favor.

For my allocations today, depending on how volatility is at open, I am very interested in selling some 0-DTE CSPs on $TSLA. With the bearish movement we’ve seen on Tesla over the previous weeks, there is going to be a significant amount of premium that is available within the organization, and I want to get some exposure right now, as market conditions are still displaying strength, but $TSLA is displaying weakness. This weakness will generate a significant amount of premium that we are all going to be able to capitalize on with ease, so that is just my two cents. I do not feel comfortable or confident in these current conditions, and I do believe that market conditions can continue to remain difficult for the people who are attempting to actively scalp, so I will remain more passive in the markets today and not attempt to scalp unless the right opportunities are presented to me.

Just make sure to practice safe risk management in these conditions, and limit your downside exposure as many traders are going to have a lot of difficulties today.

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

HaiKhuu Proprietary Algorithm Report:

We saw a slight outperformance from the algorithm yesterday which is a great sign as $SPY was down on an intraday basis, but we did not see it outperform the fundamental analysis of the long-term portfolio. I am happy to see that everything across the board outperformed, and it’s nice seeing that on a day of weakness, our neutral strategy beat out everything, but it was a tough day for the markets, so a win is a win.

The results of yesterday are as follows:

Baseline:

$SPY: -0.26%

Our Results:

Market Neutral: +0.22%
Sector Neutral: +0.16%
Variable Sector Neutral: +0.12%
Variable Market Neutral: +0.11%
Long Term Portfolio: +0.05%
Base Algorithm: +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, $TSLA, $NVDA, $MSFT, $AAPL, $BA, $KO, $SOFI

Position Opportunities:

Follow the market momentum
Take profit on positions
Limit your downside risk

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 01/12/2024

PPI - 8:30 AM ET
Fed’s Kashkari Speaks - 10:00 AM ET

Notable Earnings for 01/12/2024

Pre-Market Earnings:

JP Morgan (JPM)
UnitedHealth Group (UNH)
Delta Airlines (DAL)
Bank of America (BAC)
Wells Fargo (WFC)
BlackRock (BLK)
Bank of New York Mellon (BK)

Wrap up

This should be an interesting way to end the week. Make sure to practice safe risk management as we have earnings and economic news that will impact the markets, with people allocating accordingly knowing that the markets are closed on Monday. Please be careful trading today as conditions are going to make it difficult to trade with both confidence and consistency. We could easily watch as $SPY has some solid bullish momentum, but at the same time, we can very easily sell off. Protect your bottom line, and realize gains where you can, but just tread lightly on these market conditions as markets are strong, but are displaying signs of weakness.

Good luck trading, and let’s end this week strong!

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HaiKhuu Daily Report 01/12/2024