HaiKhuu Daily Report 10/03/2023
Good morning and happy Tuesday! Hope you all are excited about today! Markets are neutral at the time of writing this report, signaling that there is going to be a lot of confusion in the general markets. Bearish sentiment is getting stronger as the conversion line resistance is dropping as there is not enough buying momentum or volume to sustain a bullish movement up. Please be careful and cautious in these current market conditions, but understand that we can very easily see a breakout in the near future once there is a shift in general market sentiment and buying momentum.
I do believe we will see a sizable rally by the end of the year, but it is just a matter of general movement between now and then. Remain solvent, look for phenomenal opportunities to buy value, and retain cash on hand ready to allocate once we’ve hit a relative “bottom”
We can easily test three-month lows again, but it is just a matter of news events, sentiment, and market momentum. We are still in extreme fear on the fear and greed index, testing daily resistance, and many organizations are highly overvalued right now, so look to be cautious, be safe, and attempt to make smart allocations at the moment that account for all of this.
Continue to be cautious of the tech sector, semiconductors, and travel, as all are going to have an extremely tough time in these market conditions, and look for opportunities to capitalize on on the increased volatility we are seeing in these market conditions.
Good luck trading today, and let’s see what the markets have in store for us!
The updated $SPY daily levels are as follows:
Conversion Line Resistance: $429.13
Base Line Resistance: $437.98
Weak Psychological Resistance: $430
Weak Psychological Support: $425
Strong Psychological Support: $420
Daily Cloud Resistance: $443.03
$SPY Daily Candles - Testing Daily Resistance [10/02/2023]
Thoughts & Comments from Yesterday, 10/02/2023
Yesterday was an extremely difficult day to trade. There were opportunities to capitalize on both the downside and the upside, but there was a significant amount of confusion in the process and not much overall movement that could have been capitalized on. If you were able to get out of yesterday relatively unscathed and profitable, you should consider that a win.
We started the day with $SPY looking mild, slightly down from Friday’s close despite the government not shutting down, opening at $426.63, down from the previous close of $427.48. A lot of people were expecting to see a significant movement as a result of the government not shutting down, but unfortunately, there was not enough confidence in the markets to result in significant buying as a result of the delay of the shutdown.
The markets continued to chop around for the first two hours of the day, as we were going into the lunchtime lull, there was a quick movement up in the general markets as $SPY made an official high of the day on low volume, trading at $428.59, and ultimately came down once there was a slight amount of selling.
As people started to come back from lunch and volume continued to increase across the board, we saw that $SPY continued to sell off, continuing to test the psychological support of $425, and respecting that level well continuing to chop and bounce around that level. The official low of the day was around 1 p.m. EST, where $SPY was trading at $424.46. We had a quick bounce getting ready for power hour, that was ultimately sold off leading into power hour.
During power hour, markets bounced off of $425 and showed strength as we rallied into close. The movement up was nice as all of the selling that occurred through the day was recovered, but it was unfortunate the amount of overall movement we saw throughout the day. $SPY ended the day trading at $427.31, down $0.17 for the day, or down approximately 0.04%, with an intraday bullish movement of up 0.17%.
On an overall basis, there was not much movement in the markets as $SPY was only down $0.17 from the close on Friday, but we saw a lot of strength in many tech organizations. Many losses were incurred as a result of the chop yesterday despite the lack of movement we saw in the overall markets. Hopefully, you all were able to capitalize on the opportunities that were available to us, but just know that if you were not able to capitalize on the markets, that is fine because many traders had a significant amount of difficulties too.
Let’s see what today has in store for us, and try to have an amazing time in the process!
Heatmap - $SPY [10/02/2023]
Thoughts & Comments for Today, 10/03/2023
Today is going to be another interesting time for the markets. I believe we are going to see a significant amount of difficulties as a result of the sentiment in the markets that is going to result in a significant amount of losses to be incurred, as well as a lot of potential for gains to be missed out on. I would be extremely careful and cautious in these market conditions, and tread extremely lightly. The markets can move very easily at this point as volatility has continued to increase, but at the same time, we can see a significant amount of difficulties as a result of this. If you are not comfortable with these conditions, or not confident in your ability to navigate the markets today, I would recommend not attempting to trade, but to sit back and looking for opportunities to buy and hold solid value organizations and not attempting to capitalize on the opportunities that are available today.
At the time of writing this report, $SPY has continued to drop, leading everyone to believe that there is going to be a significant amount of weakness in the markets, but despite this, this is going to be an amazing opportunity to trade assuming you are willing to take on some risk. $SPY can easily bounce off the $425 support level, or break that level with confidence. Your prediction on the market movement right here is as valid as mine.
The only thing I can say with confidence is that there are going to be continued difficulties coming from the retail space right now, mostly with most of the market being red overall, but the large mega-cap tech organizations keeping the markets alive is not a sign of confidence. Once these organizations start to slip we are going to see a significant amount of selling across the board. I still am firm in my position that $NVDA is highly overpriced right now, resulting in other semiconductors like $AMD, $ARM, and $INTC trading at a significant premium.
Watch out for the $425 support. If we break below that level before markets open, we are going to be in a world of confusion and pain in the markets, providing us an amazing opportunity to buy and hold assuming you have the comfort and confidence to remain solvent while the markets are irrational. Use this as an opportunity to continue to have confidence in your personal ability to navigate the markets, and watch out for opportunities to allocate into fundamentally solid organizations that are both undervalued and that you believe have solid upside potential.
Personally, I am not too ambitious in attempting to capitalize on the opportunities in the markets right now. I personally know that if I wanted to take on a significant amount of risk, I would be able to realize some gains in the short term, but that ultimately would result in me taking on a significant amount of risk that at the end of the day, would not pay off. My anticipation for the day is to sit back and call out opportunities that I find available in the markets, but realistically not look to be overly ambitious in these conditions. If I find something that I personally believe is an amazing opportunity with relatively little to no risk involved, I will be more than happy to take on that position with confidence, but unless that position arrives, I do not anticipate entering into anything at the moment as I am just not confident in these current market conditions. I feel that as I have started to age with the markets, despite conditions being optimal to trade, there are just times that sitting back and watching the markets burn, might be the move in comparison to attempting to scalp like a phoenix coming from the ashes. I want to be the man rummaging through the rubble trying to find the gems in the markets, than the man trying to fight to stay alive. I want to find and hold some solid allocations in these current market conditions and see what opportunities are available, but be safe and cautious in the process.
There is an extremely high likelihood of the markets moving up today, but there is a significant amount of risk involved while attempting to allocate in these conditions I do not want to attempt to fight any trends. Let’s be patient and watch for signs of reversal before entering, to provide us with enough confidence that we can find comfort in our positions. Until then, be safe, practice risk management, and let’s realize some gains accordingly.
Let’s see what happens today as a result of the economic news that comes out.
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 extremely tough day for our systems as markets were slightly green on an intraday basis as a result of general tech performing well, while everything else did extremely poorly. We are finalizing some new tests and will be lifting the hold on our algorithm as soon as we switch and upgrade our previous systems as well as building out a new portfolio for us to actively utilize. We are still on a tentative hold but anticipate lifting this hold NEXT WEEK. So this is going to be exciting, but for now, again just remember that these positions are on hold, and we are only providing them for complete transparency and consistency sake. I personally do not recommend allocating into these positions at this moment, and to hold off until the new system is in place and upgraded! Thank you all for your patience when it comes to this system and we are all very excited about these upgrades coming soon.
To get an in-depth analysis of our algorithms' performance, check out Asher’s Report!
The results of yesterday are as follows:
Baseline:
$SPY: +0.17%
Our Results:
Sector Neutral: -0.24%
Variable Sector Neutral: -0.85%
Market Neutral: -1.02%
Variable Market Neutral: -1.28%
Base Algorithm: -1.37%
Long Term Portfolio: -1.38%
As I said before, the algorithm is on a tentative hold at this time as a result of market conditions not being favorable and us not wanting to provide positions that are not consistent and not up to our personal standards. We are continuing to provide these positions for complete transparency and consistency's sake, but just note that HaiKhuu is not endorsing any of these positions. Please take these all at your own risk, and make sure you are practicing safe risk management if you are attempting to allocate into any of these positions.
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.
Algorithmic Alerts [10/03/2023]
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 , $NVDA , $AMD , $AMZN, $DG , $DIS , $TSLA , $AAPL, $MSFT
Position Opportunities:
Follow the market momentum
Limit your downside risk
Hold cash & prepare to allocate into the markets
LONG OPPORTUNITIES:
Long-Term Dividend - $GAIN / $JEPI
Long-Term Investment - $DIS / $DG
Economic News for 10/03/2023
Redbook YoY - 8:55 AM ET
JOLTS Job Openings - 10:00 AM ET
Notable Earnings for 10/03/2023
Pre-Market Earnings:
McCormick and Company (MKC)
After-Market Earnings:
Cal-Maine Foods (CALM)
NovaGold Resources (NG)
Wrap up
Overall, this is going to be an extremely interesting day for the markets, so please make sure to practice safe risk management in the process of everything, but look to capitalize on the opportunities that are available to us with the upside potential in the markets right now. Be safe, be cautious, tread lightly, but take advantage of the opportunities in the current market. Let’s have a great time and realize some gains!
Good luck trading and let’s kill it today!