HaiKhuu Daily Trading Report

Good morning, and happy Wednesday! This week has been flying by and this has been an extremely confusing time for the markets. $SPY is down at the time of writing this report, and we are actively testing the daily conversion line support. With the placement we are seeing on $SPY, prepare to watch as we bounce off of support and move back up, or break through this support level and start to sell off. There will be many opportunities to trade throughout the day which will be great, but just be cautious at these levels as conditions are not optimal and will generate a significant amount of losses in a short period of time.

Be safe while trading today, but look for opportunities that present themselves.

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

The updated $SPY daily levels are as follows:
Conversion Line Support: $472.52
Baseline Support: $467.90
Psychological Support: $470
Daily Cloud Support: $447.82

Thoughts & Comments from Yesterday, 1/16/2024

Yesterday was an insane time for the markets. There was an extremely small movement overall on $SPY, but if you watched specific organizations, you would have an insane time and realized a significant amount of gains in the process. We watched as $TSLA rallied over 5% in a matter of half an hour early in the morning, and watched as $SAVE dropped 60% on the news that JetBlue was not acquiring them, going from $15.52 to making the low of the day trading at $5.80 and watched as many traders scalped the bottom, and were able to ride the upside, as $SAVE moved up approximately 40% from the bottom. It was a mediocre day for the markets as a whole, but depending on what you were watching, there were many phenomenal opportunities to actively trade and realize a significant amount of gains.

We started the day off with $SPY being down significantly during the pre-market session but watched as there was a general recovery in the markets during the pre-market session. We opened the day with $SPY trading at $475.25 and watched as markets came down to make a relative low trading right below $474 within the first half hour of the day. While this was happening, we watched as $TSLA went on to make the official low of the day trading slightly above $212, and was down almost $6 from the previous close. This was not a good time, but we watched as $TSLA ripped up afterward, causing $SPY to move up too, where $TSLA rallied $11 from the bottom in less than an hour, and $SPY recovered $2 in the process. We made the official high of the day with $SPY trading at $476.60 at the peak leading into the lunchtime lull and watched as there was a quick snipe in the markets as Fed Waller was speaking on rate cuts, but the markets recovered all of the losses and were trading back around the high of the day.

The markets did sell off as volume started to come back after the lunchtime lull, but we did watch as there was a quick rebound as $SPY made a relative low trading around $474, to bounce back up to make a relative high around $475. After making that relative high though, leading into power hour we watched as $SPY went on to sell off and make the official low of the day trading at $473.07, displaying general weakness, but provided us with a great dip buying opportunity as the markets recovered during power hour, and displayed strength into close.

We ended the day with $SPY trading at $474.93, down $1.75 for the day, or down approximately 0.4%, with $SPY being down $0.28 on an intraday basis. For an overall day for the markets, there was not much movement, but there was a significant amount of intraday movement that we could have easily capitalized on and realized a significant amount of gains in the process. I hope you all were able to catch our plays on both $TSLA and $SAVE yesterday because if you were able to do so, you would have been able to realize gains with us with ease!

It was an amazing day for us yesterday, so let’s see what the markets have in store for us today, and make the most out of these market conditions!

Thoughts & Comments for Today, 01/17/2024

Today is going to be an extremely difficult day to gauge during the pre-market session while writing this report. We are down during the pre-market session and are actively testing the daily support levels, but there is major economic news coming out during the pre-market session which will impact the performance of the markets and impact the general sentiment heavily. I’ll be keeping my comments more vague for this report, and provide general sentiment thoughts and how to navigate the markets depending on the conditions in the markets.

From what I am seeing during the pre-market session, most organizations are down heavily at this time, while there is short-term weakness in the markets. I think that realistically, we could easily break below the daily support level and continue to come down, or this will be a wild bear trap and we will watch as markets bounce off of this support and push back up.

Market conditions are still strong, but we are displaying weakness right now. Realistically, if market conditions worsen, I would be extremely careful because we could easily break down and sell off. I would not be overly bearish until we see a confirmation of a reversal from the top, and I would be extremely hesitant to attempt to go long in these market conditions.

Watch out for a breakdown below the daily conversion line, and the daily baseline before being overly bearish, as once we break and hold below the baseline, that will be the official confirmation of a reversal towards the downside. The channel between those two levels is continually getting tighter, meaning market momentum is slowing down, and we might see a bearish TK-Cross under on the daily timeframe, but you never want to jump the gun, as market conditions are still significantly stronger now than we were this time three months ago.

If you are attempting to allocate into the markets, the best way to capitalize on these conditions is by actively scalping and day trading. You will have more short-term risk assuming you are not following the market momentum or allocating improperly, but the biggest thing about having shorter timeframe allocations in these market conditions is you will be limiting your general exposure, and will be able to realize gains quickly, versus having to hold positions in the case market conditions continue to weaken. Limiting your general exposure in these conditions, but still being able to capitalize on market momentum will be the key to your success in these market conditions.

For my allocations today, I still have the same sentiment as yesterday. I want to be overly cautious in these conditions and minimize my general exposure, but look for opportunities to allocate into the markets when I have the confidence to do so. My active scalps and day trades will be relatively minimized in these conditions, but if an opportunity is presented to me, I will take advantage of the momentum and realize some short-term gains. I am not confident in these market conditions and do not believe that many people will be able to consistently realize gains, but I do believe we will see some great opportunities in the near future to allocate long into the markets with confidence. One position I will keep my eyes on is $BA. I believe that the load-up range on $BA is within the $180-$200 range, which is the range that we are in right now. I do believe with conditions continuing to weaken in the general markets that $BA does still have a lot of potential to come down, which does not bring confidence, but at the value point that it is at, I believe this is a great opportunity to start preparing for an entry in the organization. I would minimize exposure before $BA earnings on the 31st, but assuming that $BA continues to remain within this range, and gets towards the lower end of the entry range, scale in accordingly, even if it is before earnings, and just practice risk management. Start slow and scale into equity if you are attempting to play $BA, and just know this will be a slow brewing play that will play out once we get positive news again about the Max-9s. Do not jump the gun, and do not allocate heavy early on with $BA. Be smart and be safe, this is a sketchy play that can generate losses in the short term, but in the grand scheme of things, can very very easily generate a significant amount of gains. Wait until the lower end of the entry range, and wait until I start entering. Hold your position over the course of time, and watch as $BA recovers with positive news about general deliveries, the Max-9 grounding being lifted, and confidence coming back into the general markets.

Just continue to be smart in these market conditions, and do not increase your risk right now. Limit your downside exposure, and protect your portfolio. This is not the time to take on risk and many people will realize a significant amount of losses today. Don’t be one of those individuals who get caught and burnt in this general market 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 an interesting performance from our algorithmic systems. Our sector-neutral strategy outperformed everything by a significant margin, beating out the intraday movement of $SPY by almost 1%. It is interesting to see this performance while other strategies were relatively neutral throughout the day. The long-term portfolio outperformed $SPY while the base algorithm underperformed. We will continue to not post algorithm allocations throughout the week for safety as a result of the past performance and will keep you updated on our plans for the future of this program.

The results of yesterday are as follows:

Baseline:

$SPY: -0.07%

Our Results:

Sector Neutral: +0.77%
Variable Sector Neutral: +0.52%
Long Term Portfolio: +0.03%
Market Neutral: -0.04%
Variable Market Neutral: -0.19%
Base Algorithm: -0.24%

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, $SAVE, $BA, $TSLA, $NVDA, $MSFT, $AAPL

Position Opportunities:

Follow market momentum
Take profit on positions
Limit your downside risk

LONG OPPORTUNITIES:

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

Economic News for 01/17/2024

Import Price Index - 8:30 AM ET
Retail Sales - 8:30 AM ET
Redbook - 8:30 AM ET
Industrial Production - 9:15 AM ET
NAHB Housing Market Index - 10:00 AM ET
Business Inventories - 10:00 AM ET
Fed Beige Book - 2:00 PM ET

Notable Earnings for 01/17/2024

Pre-Market Earnings:

Charles Schwab (SCHW)
Prologis (PLD)
Citizens Financial Group (CFG)
US Bancorp (USB)

After-Market Earnings:

Alcoa (AA)
Discover Financial Services (DFS)
Wintrust Financial (WTFC)
Kinder Morgan (KMI)
Synovus Financial (SNV)
HB Fuller Company (FUL)

Wrap up

This is going to be a tough day for the markets. Please be careful and cautious when attempting to allocate, and protect your bottom line as conditions are not optimal to move up. We have a significant amount of economic news that will be coming out both during the pre-market session as well as throughout the day which will impact the performance of the markets, so tread lightly on these conditions, and realize gains when given an opportunity to do so, and be smart and safe in the process.

Good luck trading, and let’s see what $SPY does here at this daily support.

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HaiKhuu Daily Report 01/17/2024