HaiKhuu Daily Report 02/26/2024
Good morning, and happy Monday! I hope you all are well rested and are excited to see what the markets have in store for us this week. The markets have continually hit new all-time highs, and conditions are looking exceptionally strong. There is an exceptionally strong likelihood that the markets make a new all-time high this week, so look to follow the trend and have some fun in the process of everything. We have lots of major economic news this week including GDP and Fed speakers throughout the week. Be on the lookout to capitalize on increased volatility and movement in the markets.
Markets are down slightly at the time of writing this report, and conditions are not looking perfect going into open, but regardless, this will be fun watching the ongoing movement and momentum in the markets here in the short term. Let’s have some fun this week and do what we can to maximize the amount of realized gains we are able to generate
Good luck trading this week, and let’s have a great time!
The updated $SPY daily levels are as follows:
Conversion Line Support: $500.42
Baseline Support: $493.33
Psychological Support: $500
Daily Cloud Support: $470.78
$SPY Daily Candles - [02/23/2024]
Thoughts & Comments from Last Week
Last week was beautiful, yet difficult to navigate with confidence. It was a shortened week but had a ridiculous amount of volatility, momentum, and opportunity. Many traders were able to make a significant amount of realized gains, while others had extreme difficulties. Opportunities were presented to us across the board and provided us with many chances to realize gains. Hopefully, you all were able to ride the momentum and have some fun in the process. We started the week with $SPY remaining relatively weak but watched as the markets recovered beautifully on $NVDA earnings.
We started the week with $SPY trading at $497.72 on Tuesday, displaying general weakness in the markets, and not displaying much confidence as we moved down to test the daily conversion line. Markets quickly dropped to break below the support, where $SPY made the official low of the day, trading at $494.45, but recovered slightly, ending the day trading at $496.76.
Wednesday is where the fun started; we started the day with $SPY opening at $495.42, down from the previous close, and watched as conditions were not looking optimal at all. We had FOMC minutes coming out, and conditions were looking weak. $SPY had a continually bearish trend for the large majority of the day, and we only continued to sell off heavily into the release of minutes. Once minutes were released, selling increased heavily, where $SPY went on to make the official low of the day trading at $493.56, stopping many traders and causing a significant amount of losses to be generated. We watched as $SPY quickly recovered into close, going on to make the official high of the day in the final minute as $SPY ended the day trading at $497.21. All of the losses that were generated throughout the trading day were quickly bought back up and provided traders with a phenomenal time. The extremely interesting part was the after-hours session. We watched as $NVDA had earnings, and that was a major catalyst for the markets to move back up. We watched as $NVDA fell roughly 3% prior to earnings before ripping up over $100, providing the markets with the comfort and confidence to continually rally and hit new all-time highs.
Thursday started with a major gap up in the overall markets. Conditions remained strong as $NVDA pushed new highs and caused the markets to rally in the process. We started the day with $SPY trading at $504.01 and watched as we continually rallied throughout the day, making new all-time highs in the process and making many traders extremely profitable in the process. It was a great time to simply ride the momentum in the markets and watch as $SPY went crazy. $SPY made the official high of the day on Thursday, trading at $508.49, and everyone loved the process.
Friday was a relatively mediocre day for the markets, but after the general movement we’ve seen in the markets, one day of mediocrity is nothing to cause any major concerns. We started the day with $SPY making a new all-time high and continually pushed up in the early morning, with $SPY making the high of the day, and new official all-time high trading at $510.13, up significantly and looking extremely confident in the process. We watched as market conditions weakened after making the official high, with the markets quickly selling off, where $SPY sold off approximately $3 into the lunchtime lull, making the official low of the day trading at $507.10. Conditions were not optimal throughout the rest of the day as we remained relatively neutral from that point, but the markets did attempt to recover prior to selling off into close.
We ended the week with $SPY trading at $507.85, ending the week strong, up over $10 throughout the shortened week. There was a significant amount of difficulty navigating these market conditions with confidence and strength, but it provided us all with an amazing opportunity to trade and realize gains. Congratulations to everyone who was able to realize gains with comfort and confidence last week, and if you realized losses, let’s make those losses back this week with lots of opportunities to trade this confidence.
Let’s see what this week has in store for us and prepare accordingly!
Heatmap - $SPY 02/23/2024
Thoughts & Comments for Today, 02/26/2024
Today is going to be a difficult day to gauge during the pre-market session. At the time of writing this report, $SPY is down, but conditions can shift heavily during the rest of the pre-market session and even heavier during active trading. I would advise extreme caution while attempting to allocate in these market conditions as a result of ongoing confusion, but at the same time, look out for opportunities to capitalize on strong market conditions. Markets may be at a point of confusion, but just remember that we are at a place of general strength where we can capitalize on opportunities consistently across the board. Do not fight this trend, do not fight the momentum, and look to remain consistent across the board.
There will be many short-term opportunities to realize gains, but there is a lot of confusion in the markets as a result of the current placement. Many people want to be bullish in the markets as a result of these strong conditions, but at the same time, we are seeing many difficulties as a result of people not wanting to allocate as a result of market conditions being extremely strong. The one thing many people are forgetting, though, is that this is a trader’s paradise. It is extremely difficult attempting to justify an allocation while conditions are strong and equities are heavily overpriced, but if you look to capitalize on the short-term momentum in the markets, there are many opportunities to realize gains with ease. As a result of equities being overpriced, you will see larger movements both toward the upside and downside once there is movement, and those larger movements give you more opportunity to increase the amount of gains you are able to realize. Just continually be smart in the process and practice safe risk management because increased momentum in the markets is a double-edged sword. Look to limit your downside risk, but take on an appropriate amount of risk in these conditions to increase your profit potential.
A play that I have been watching IPO and is going to be one of the main positions that I will be continually watching here in the short term is $RIVN. Over the last earnings season, I’ve seen the organization do phenomenally, and I’ve watched as the organization recently hit an all-time low. My thesis still remains that over the next couple of years, I am bullish on the organization as a result of their EDV, but in the short term, I am expecting to see a lot of volatility and difficulty recovering as a result of recent news. I would advise extreme caution when attempting to allocate and to make sure you practice safe risk management. $RIVN will be facing some short-term difficulties and, as a result, will have increased volatility in the process. When we start to see a recovery, I expect that the first day of bullish movement will be significant and be the catalyst to some consistent bullish momentum, but it is just a matter of remaining consistent afterward. My timeframe on this allocation in the short term is to capitalize on the next 1-3 months but realistically can be longer if operational difficulties remain. I do not anticipate exiting this position in the near future, and it will be a position I hold indefinitely. The only thing that is currently going against my position is active theta in the contracts that I have.
For my allocations today and this week, I will be looking to minimize my active trading. I am slowly preparing my portfolio to be away for a couple of days and will be looking to slow down my allocations in general next week. My current allocations are relatively narrow at this moment but are deep across the board. I am heavily allocated into both $GRYP and $RIVN in the short term, with $GRYP looking extremely strong with lots of potential for a breakout, while $RIVN is a play that I am conflicted about in the short term. I do not have any anticipation of selling this $RIVN for a loss in the short term, and I will hold this position accordingly and see how it plays out. I still remain bullish on the organization over a longer timeframe and will continually hold until my thesis is proven true.
If I decide to get into any other plays and see opportunities, though, I’ll announce what I see in the HaiKhuu Discord.
HaiKhuu Proprietary Algorithm Report:
Last week, the algorithm had an interesting performance. If you took every single play that was called out, you would have net an overall loss of approximately 0.58%. That is not the worst loss that could have been generated, but it is obviously not an ideal situation for showcasing our system. We do not like sugarcoating our results, mostly as they will either positively or negatively impact you, so we would rather be honest with our conditions than attempt to lie about performance. This algorithm will work the best if you are looking to cherry-pick positions that you are comfortable and confident in allocating into versus blindly allocating into and praying that it works.
The best trade that was taken last week was a long on $MPWR, which netted a 2.87% return as a result of some positive overnight movement, and the best movement we saw on an intraday basis was $NUE, where we were able to net a clean 1.37% return.
The best short that the algorithm took last week was a short on $ENPH, where we were able to net 1.9%, and traders could have held to net 3.5%, assuming they held their position until close on Friday.
The worst trade that was taken last week was a short on $NEM, where we lost 1.76% in the process, but as a trader looking at the position, realistically, I would have stopped out of the trade at breakeven and would have cut the position multiple times over before it hit the final price to stop out officially for a loss.
Overall, I am very happy with the results of last week. I am not happy about the overall performance, but that is counterintuitive in comparison to what we are planning on doing with general allocations. We took a total of 215 trades with the system, with 120 positions being long and 95 positions being short. I would consider last week a win despite the raw performance number saying otherwise.
If you want to read this report in depth, please check out our Algorithm Report!
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, $RIVN, $TSLA, $GRYP, $BABA, $NVDA, $AMD, $SMCI, $AAPL, $MSFT
LONG OPPORTUNITIES:
Long-Term Dividend - $GAIN / $JEPI
Long-Term Investment - $KO / $BA
Speculative Re-Entry - $DIS / $RIVN
Economic News for 02/26/2024
Building Permits - 8:00 AM (ET)
New Home Sales - 10:00 AM (ET)
Dallas Fed Mfg Business Index - 10:30 AM (ET)
3 & 6 Month Bill Auctions - 11:30 AM (ET)
2 & 5 Year Note Auction - 1:00 PM (ET)
Notable Earnings for 02/26/2024
Pre-Market Earnings:
Berkshire Hathaway (BRK.B)
Li Auto (LI)
Krystal Biotech (KRYS)
Domino's Pizza (DPZ)
Alpha Metallurgical Resources (AMR)
Fidelity National Information (FIS)
Itron (ITRI)
Freshpet (FRPT)
Public Service Enterprise (PEG)
Pilgrim's Pride (PPC)
After-Market Earnings:
Unity (U)
Zoom Video Communications (ZM)
Workday (WDAY)
Hims and Hers Health (HIMS)
ONEOK (OKE)
iRobot (IRBT)
SBA Communications (SBAC)
CarGurus (CARG)
AES Corp (AES)
Everbridge (EVBG)
Wrap up
This should be a fun time for the markets. Look to take advantage of these market conditions and look to increase your gains while you can. Many traders are going to have a difficult time navigating current conditions as a result of the increased confusion, but other traders will see this confusion and look to take advantage of it and realize a significant amount of gains as a result. Look to take on an appropriate amount of risk and look to decrease your downside potential. This is going to be a fun week for the markets with many great opportunities. So be smart and safe, and have some fun.
Good luck trading, and let’s see what the markets have in store for us!