HaiKhuu Daily Report 10/05/2023
Good morning and happy Thursday! This week has absolutely flown by and I hope you all are doing well during these market conditions. $SPY is neutral at the time of writing this report, and conditions are not looking any stronger. This has been an extremely difficult time navigating the markets but has consistently provided us with opportunities to trade and realize a significant amount of gains.
Watch out for the daily conversion line resistance on $SPY. If we break above that point, that is going to be confidence in the short term that we can capitalize on. Look for opportunities to purchase deep value in the markets, allocate with confidence in organizations that are fundamentally undervalued, and continue to trade the momentum in the markets to capitalize on the movements we are seeing on an intraday basis.
Practice safe risk management, but know that there is short-term confidence in the markets right now.
Let’s see what today has in store for us, and continue to take advantage of the opportunities that are available to us.
Good luck trading, and let’s realize some gains with confidence today!
The updated $SPY daily levels are as follows:
Conversion Line Resistance: $426,23
Base Line Resistance: $436.93
Weak Psychological Resistance: $430
Weak Psychological Resistance: $425
Strong Psychological Support: $420
Daily Cloud Resistance: $443.73
$SPY Daily Candles - Testing Daily Psychological Support [10/04/2023]
Thoughts & Comments from Yesterday, 10/04/2023
Yesterday was a beautiful day for the markets, but extremely difficult to navigate with confidence. A lot of individuals realized a significant amount of gains, and the markets provided us with some amazing opportunities to trade. Hopefully, you all took advantage of the momentum in the markets and had an amazing time in the process.
We started the day yesterday with $SPY slightly green from the previous close, opening at $422.06. There was extremely quick bullish momentum from open as $SPY pushed up and tested $423 and came down as economic news dropped. Once we got economic news at 10 am EST, we watched as $SPY made the official low of the day trading at $420.57 and looking weak in the process. Despite this relative weakness in the markets for a short period of time, it was an amazing buying opportunity as there was a significant amount of strength and buying momentum through the rest of the day.
$SPY continued to rally as organizations like $NVDA and $TSLA led the charge, going into the lunchtime session. $SPY pushed up to $424 and remained relatively neutral at that point until volume came back into the markets and sold the markets back to $422. The movement up was nice, and the drop, in perspective, was unfortunate, but there was enough strength and buying momentum to cause the markets to move back up.
Going into power hour, there was some buying momentum as $SPY bounced off of $422, and continued to rally and move the markets up into close. We made an official high of the day 5 minutes before close with $SPY trading above $425, trading at $425.42. There was a significant amount of strength in the markets which provided an amazing opportunity.
We ended the day with $SPY dropping slightly, officially ending the day trading at $424.66, up $3.07 for the day, or up approximately 0.73% from the previous close, with an intraday bullish movement of +0.62%. It was difficult navigating the markets intraday, but if you followed the momentum, you would have had an amazing time. $TSLA pumped $15 overall, or roughly 6%, so if you were able to capitalize on that momentum intraday, you would have realized a significant amount of gains, the only sector that had issues was energy, being down significantly while the rest of the markets were beautifully green.
Let’s see what the markets have in store for us today, and make the most out of the opportunities available!
Heatmap - $SPY 10/04/2023
Thoughts & Comments for Today, 10/05/2023
Today seems like it is going to be a fun day for the markets. There is relative confidence and optimism in the markets that we can capitalize on in the short term, but I want to say that we are not out of the woods yet. There is no clear sign of a reversal, nor a confirmation yet, but we are starting to see signs of confidence start to come back into the markets. The one thing you should watch out for, which is going to be the first of many signs of a reversal, is watching the $SPY daily charts, watching for us to break back above the daily conversion line resistance. That level is currently trading at $426.23, and I believe we will come up to test it here in the near future if not today.
If we are below this level, there is going to be relative weakness and fear in the markets, but once we break back above this level, there is going to be a lot more confidence resulting in more buying in the overall markets. I would not attempt to be overly ambitious today and overallocate into the markets on the possibility of this “maybe” happening in the short term, but know that realistically here at the $420 range, there is a lot of confidence and many of the megacaps are displaying strength at the moment.
This is an amazing time to purchase equities in speculation of this increase in confidence and buying in the markets, but at the same time, is still a reminder to practice safe risk management and limit your exposure. If you are attempting to purchase any equities here, make sure to watch out for the possible rejection of this level. I would highly recommend you set stops on your long equities and continue to grow your exposure over time. I would scale in slowly to organizations that are displaying an amazing opportunity to invest. There are a lot of organizations that are fundamentally solid, that are highly undervalued at this moment. Allocating to these organizations will not net you the same returns as investing in organizations like $NVDA and $TSLA, as both of those organizations are highly speculative, high beta positions, that will move significantly more than the general markets, but by investing into undervalued organizations, over the course of time, you will be able to purchase with confidence and know that regardless of the conditions in the markets, that you will be able to easily and comfortably allocate with little to no risk on the table.
A great way to get exposure here, with low utilization of capital is by attempting to purchase leaps on organizations you believe have a significant amount of upside potential. You obviously will have to pay a premium to purchase these leaps, but they will provide you with liquidity to continually navigate the markets accordingly while minimizing the capital requirement for the exposure. I know I have not been a fan of travel recently, but a great example of minimizing your general capital requirement, but still retaining cheap exposure can be found in the travel sector.
For this example, I am looking at $AAL, ITM - 652DTE 12 Calls, $AAL is currently trading at $12.80, and these contracts are $3.80/each. You are paying $3 for the extrinsic value of these contracts, and they have an intrinsic value of $0.80. You are able to retain exposure in $AAL for two years and have some solid exposure. Assuming you purchase one of these contracts, versus equity, with the anticipation of holding this contract for approximately a year, you tying up approximately 25% of the capital you would have tied up otherwise with equity, as well as perspectively, getting the same return, but as you tied up less liquidity, you would get a higher ROI. This is obviously speculative, and an example, but is something I highly recommend you consider in these market conditions.
Personally, I will look to continually trade and scalp when I have an opportunity today while looking for opportunities to get strong exposure in organizations I am comfortable and confident in holding at the moment. I really am interested in getting more leaps in $DIS, despite the fact that these contracts are relatively more expensive at the moment, but will provide us with an amazing opportunity to capitalize on a beautiful bullish movement when $DIS does start to move.
Please just continue to make sure you are practicing safe risk management though, we still are in extreme fear in the markets but are starting to show signs of a possible reversal. Keep your hands up and tread lightly, but know that if conditions do shift and become optimal in the near future, we can all capitalize on it with ease.
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 amazing day for our algorithm. The base algorithm outperformed $SPY by a significant margin and I am extremely happy knowing that despite the fundamental analysis of the long-term portfolio underperforming in comparison to $SPY, our technical analysis of the algorithm outperformed by a significant margin. This is a beautiful win and is continuing to provide us confidence in our system during these confusing times in the markets. We anticipate lifting this hold in the algorithm soon, so be on the lookout as we are finalizing our newest system and portfolio for us to utilize at this time!
To get an in-depth analysis of our algorithms' performance, check out Asher’s Report!
The results of yesterday are as follows:
Baseline:
$SPY: +0.62%
Our Results:
Base Algorithm: +0.81%
Variable Market Neutral: +0.71%
Market Neutral: +0.57%
Sector Neutral: +0.55%
Variable Sector Neutral: +0.52%
Long Term Portfolio: +0.2%
As I said before, this system is on a tentative hold at the moment as a result of the confusing times in the markets, but we are looking to lift this hold soon. Know that HaiKhuu is not currently endorsing these positions, but is providing them right now for complete transparency and consistency while systems were not performing as expected. These positions are all valid from our active algorithm, but please look to take any and all of these positions at your own risk. Once the hold is lifted, this will be an amazing opportunity to allocate with confidence. We apologize again for all of the time this has taken to get to this point, and appreciate the patience you all have had during this time!
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 for 10/05/2023
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 , $TSLA , $NVDA , $DG, $DIS , $FAZE , $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 10/05/2023
Initial Jobless Claims - 8:30 AM ET
Trade Deficit - 8:30 AM ET
Notable Earnings for 10/05/2023
Pre-Market Earnings:
Constellation Brands (STZ)
Conagra Brands (CAG)
Lamb Weston Holdings (LW)
After-Market Earnings:
Aehr Tet Systems (AEHR)
Levi Strauss & Co (LEVI)
CalAmp (CAMP)
Wrap up
Overall, this is going to be an extremely interesting time for the markets, watch out for the daily conversion line and look out for opportunities to capitalize on the bullish momentum in the markets. This is going to be a great time for the people who simply follow the momentum in the markets and are able to realize some gains as a result of this. Please be smart, please be safe, and as always, practice safe risk management.
Good luck trading, and let’s do everything we can to realize a significant amount of gains while trading today!