HaiKhuu Daily Trading Report

Good morning, and happy Monday! I hope you all had a great weekend and are excited about this week! We have many fun things coming up, including earnings from a couple of large organizations like $ULTA, $ADBE, and $ORCL, while there is major economic news, including news about the Federal Budget and the U Mich Inflation Expectation & Sentiment. This is going to be a lot of fun with many opportunities presented to us, so continue to tread lightly on these market conditions, but just remember that there are going to be limitless opportunities presented to us as a result.

Markets are down at the time of writing this report, which is extremely interesting as we are actively testing the daily conversion line support after making a new all-time high. This will be confusing in regard to the general sentiment in the markets, as we can easily break through support as the markets slow down, or we can watch as $SPY breaks out again and displays confidence. Regardless of the direction we ultimately end up going, just expect that we will see a large movement relatively soon, so tread lightly but have some fun in the process.

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

The updated $SPY daily levels are as follows:
Conversion Line Support: $511.49
Baseline Support: $501.01
Psychological Support: $500
Daily Cloud Support: $481.55

Thoughts & Comments from Last Week

Last week was a wild rodeo for the markets. We watched as $SPY made a new all-time high trading at $518.22, and we watched as many organizations created a difficult trading condition, with $TSLA dropping to the lowest point of 2024, $GOOGL and $AAPL selling off, and every other major tech organization having a tough time. There were consistent opportunities presented to us, including $RIVN rallying over 20% and dip buyers loving an ITM call out on $GOOGL calls, which netted over 40% in a matter of days. The markets presented us with slower movement but many great chances to trade and realize a significant amount of gains. Hopefully, you all did alright in the trading conditions of last week and realized some gains with many of our positions!

We started the week with $SPY trading at $$512.13, looking relatively strong as $SPY continued to move up on Monday, which was relatively slow but provided the markets with confidence leading into Tuesday, where $SPY made the official low of the week trading at $504.91, displaying weakness, dropping significantly on an intraday basis, breaking below the daily conversion line support, and creating some fear. We did watch as $SPY recovered nicely into close on Tuesday, and set up leading into Jerome Powell Testifying.

Jerome Powell was the major economic catalyst for movement last week, where on Wednesday, we watched as the markets had a large intraday movement, but remained relatively neutral on an overall basis, but caused the markets to rally nicely on Thursday. The movement up in the markets was strong as many traders had a relatively easier time trading as there was significant confidence, and $SPY made a new all-time high in the process, trading at $515.89, and continued to push into Friday.

Friday was genuinely a wild time for the markets as $SPY opened the day up, testing the all-time high and rallied at open, making the high of the day and new official all-time high trading at $518.22. We watched as the markets continually sold off after making the official all-time high and displayed weakness throughout the rest of the day, where $SPY ended the week trading at $511.72, down $3.09 from open, down almost $7 from the top, and created many difficulties for the majority of traders who attempted to participate.

For the overall week, $SPY was down $0.41, or roughly 0.08%. There was not much overall movement in the markets, but there were many phenomenal opportunities to trade and realize a significant amount of gains in the process. $SPY displayed overall strength as we made a new official all-time high but also displayed confusion, as there was a $13 move from the bottom to the top. It was a wild week with many possibilities, so I hope you all did alright and were able to realize a significant amount of gains in the process. It was a lot of fun watching many organizations do phenomenally, so let’s see what the markets have in store for us this week and make the most out of it!

Thoughts & Comments for Today, 03/11/2024

Today is going to be a tough day to navigate, as a lot can happen in an extremely short period of time. Given the current market conditions, I am expecting to see a large movement in either direction, and it is just a matter of which direction the markets decide to go in. $SPY is down at the time of writing this report, and we are displaying weakness in the markets as a result of $SPY breaking through the daily conversion line support. Markets can easily reclaim and break back above that level as it has continually for the previous couple of months, or we can watch as the markets, unfortunately, have a difficult time reclaiming that support and ultimately breaking down in the process. A sell-off is obviously not ideal, but it is a very real possibility that has needed to happen over the previous couple of months. It would not surprise me to see conditions weaken, but just remember that the markets have remained strong over the previous couple of months and are still strong at the moment. One minor sign of weakness is not a confirmation of a reversal from the top nor a signal that the markets are coming down.

Look to tread lightly on these market conditions and look for opportunities to capitalize on the confidence in the markets. Many traders are going to be extremely hesitant to attempt to allocate here, but I think that is completely justified and should be your mindset. There is confidence in the markets, but attempting to allocate long is difficult as markets are continuing to push highs. If anything, look to allocate more to undervalued equities and hold them with confidence.

One organization that I do believe has a lot of potential in these market conditions is $TSLA. Obviously, if you look at the chart organizationally, it does not look like it is setting up for success. It is currently the worst-performing mega-cap, EV demand is down, and there are short-term fundamental issues that operationally Tesla is facing, but despite all of this, $TSLA is due for a bounce. Who knows when $TSLA will start to recover, but it, in my opinion, is one of the best contenders to move back up. This is obviously a risky play as you are betting on the underdog who can continue to underperform in comparison to allocating towards an organization that has been safely trending up, but that is just part of being in the markets. The risk-takers are the ones who have a difficult time, but in the case, they are right, they are heavily rewarded in the process.

For my allocations today, I do intend to keep things simple. I am back at the office, so I have the complete ability to actively scalp throughout the day, but I want to keep things slow and simple today for my general safety. I do believe that I can easily navigate these conditions, but I am not confident in the current location of the markets. I think we can move up easily, but at the same time I do believe that the markets can come down with ease. I'd rather be upset knowing that I missed out on an opportunity as a result of sitting back than forcing allocations while I watch as general markets come down. I’ll obviously continually call out allocations I personally see an opportunity with, but I would rather be passive today to get back into the swing of things before diving into the deep end.

If I decide to get into any other plays and see opportunities, I’ll announce what I see in the HaiKhuu Discord.

HaiKhuu Proprietary Algorithm Report:

Last week was an interesting week for the performance of the algorithm. Overall, the algorithm was able to generate between 0.21-14.7% returns, depending on how you allocated. This seems like a wide range, but if you equally allocated capital to every position and did not utilize the majority of the overall capital, you would have a net 0.21%, while if you allocated 100% into every single position that was alerted, you would have net almost 15%. Both are obviously on opposite sides of the extreme, but they accurately show the range of returns that could have been generated.

The best trades of last week are as follows:

Best trade overall, Short on $ALB, overnight return of 7.87%

Best Intraday Position, Short $ALB, return of 3.42%

Best long position, Long $RMD, return of 3.42%

Worst trade of last week, Short $PAYC, return of -1.44%

If you want to read the full algorithm report, check out the FULL REPORT HERE

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, $RIVN, $BABA, $NVDA, $SMCI, $AMD, $GRYP

LONG OPPORTUNITIES:

Long-Term Dividend - $GAIN / $JEPI
Long-Term Investment - $BA
Confirmed Re-entry - $RIVN

Economic News for 03/11/2024

NY Fed Inflation Expectations - 10:00 AM
3 & 6 Month Bill Auctions - 10:30 AM

Notable Earnings for 03/11/2024

Pre-Market Earnings:

Fortrea Holdings (FTRE)

After-Market Earnings:

Oracle (ORCL)
Asana (ASAN)
Casey General Stores (CASY)
Vail Resorts (MTN)
Alto Ingredients (ALTO)
Mission Produce (AVO)

Wrap up

This is setting up to be a fun day for the markets, so let’s continue to ride the momentum in the markets and realize gains where possible. Tread lightly as $SPY is at a point of confusion, but just know that many traders are going to be extremely profitable in the process as a result of this confusion. Risk takers will be rewarded if correct, so be safe, but look for opportunities that present themselves. Practice risk management, but have a great time in the process.

Good luck trading, and let’s see how $SPY reacts here at support.

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HaiKhuu Daily Report 03/11/2024