HaiKhuu Daily Report 10/06/2023
Good morning and happy Friday! This week has FLOWN by and hopefully, you all have realized a significant amount of gains as a result. There has been a lot of confusion, making trading significantly more difficult and inconsistent, but there have been many opportunities to trade phenomenal organizations.
We noticed that there was a dragonfly doji on $SPY yesterday, resulting in what could possibly be a sign of reversal as we are coming up to the daily conversion line resistance, and as a result, the sentiment I had in the markets remains the same.
This looks like a great opportunity to buy and hold solid organizations as it may provide us with an opportunity to catch the bottom, but at the same time, to not be overly ambitious in these conditions and scale into positions slowly with confidence. This is an amazing opportunity to enter. There is downside risk via allocating into the markets right now, but at the same time, if you limit your risk by setting stops, this is going to be an amazing time. There is a lot of upside potential in the markets at the moment, so look to take on a little bit of extra risk in this current market, but make sure to have stops set in place in case $SPY rejects this daily conversion line resistance.
As this is Friday, and volatility is significantly higher than it normally is, look to sell some 0-DTE CSPs, you will not incur any life-changing money, but it will pay for a nice dinner taking advantage of this increased volatility on organizations that have a significant amount of premium. I’ll talk more about this play later on in the report.
Good luck trading today, and let’s end this week strong!
The updated $SPY daily levels are as follows:
Conversion Line Resistance: $426.02
Base Line Resistance: $436.93
Weak Psychological Resistance: $430
Weak Psychological Support/Resistance: $425
Strong Psychological Support: $420
Daily Cloud Resistance: $444.28
$SPY Daily Candles - Dragonfly Doji [10/05/2023]
Thoughts & Comments from Yesterday, 10/05/2023
Yesterday was another confusing and conflicting day for the overall markets with a significant amount of movement in both directions, but no significant movement on an overall basis. It was a relative wash for anyone who was simply buying and holding allocations, and difficult if you attempted to capitalize on the intraday movements. Hopefully, you all came out unscathed, and many more of you were able to realize a significant amount of gains in the process.
$SPY started the day trading at $424.34, slightly red from the previous close of $424.66, but relatively neutral overall. There was slight bullish momentum as we popped up from open to test the $425 psychological resistance on $SPY, and ultimately rejected that level causing us to continually sell off and slip for the large majority of the morning. We bottomed out leading into the lunchtime lull, making the official low of the day with $SPY trading at $421.18.
Markets were looking relatively weak at this time, but throughout the lunchtime lull, there was active buying, resulting in the markets recovering a majority of the losses that were incurred. $SPY got back up to $423 while the momentum slowed down, and we tested that level for a short period of time. $SPY sold off leading into the back half of the afternoon, breaking back below $422, but showed strength as we quickly reversed and pushed into the end of the day.
During power hour, $SPY went green again for the day, making the official high of the day trading at $425.36 and looking optimistic, but we watched as the bullish confidence after $SPY broke above the $425 resistance level faded away. We watched as $SPY sold off slightly to end the day, with not much overall movement in the markets. We ended the day with $SPY trading at $424.50, down $0.16 for the day, or down approximately 0.04%, with an intraday bullish movement of +0.03%.
It was a tough day for the overall markets as there really was no significant movement on the day, but if you look at the intraday movements, there were many opportunities to get burnt and have a terrible time. It is unfortunate that this is what happens as markets are choppy, but it is phenomenal to know that despite the difficulties, many people were extremely profitable.
After the insane day, we were left with a dragonfly doji on the daily candle, which is a possible bullish sign of reversal (assuming you believe in candle patterns & the Loch Ness Monster), so take that with a grain of salt and know that there is a strong probability that we see some strong bullish movement today!
Let’s see what today has in store for us, and take advantage of all of the opportunities that are available to us!
Heatmap - $SPY 10/05/2023
Thoughts & Comments for Today, 10/06/2023
Today is going to be another confusing yet interesting day for the markets that will provide us with a significant amount of opportunities to trade and realize a significant amount of gains. I believe that realistically, we can see some beautiful bullish momentum and opportunity, so be smart and look to take advantage of the increased volatility in the markets. With the way the markets sit right now, there is a lot of upside potential, so look to take on some exposure, and maximize the amount of gains you will be able to realize in the short term.
I usually do not say this often, but take on risk right now in the markets, but make sure to practice safe risk management in the process. Increase exposure, and take on some heat, but make sure you understand the downside risk that is involved in the process. Markets can easily reject this baseline and move down with relative ease, but at the same time, we are watching for a breakout play while the markets have shifted from extreme fear, to fear on the fear and greed index.
Look to take advantage of this opportunity, but just be careful in the process. 0-DTE calls today that are ATM at open, will be extremely expensive, but provide you with some amazing opportunities today. They will either go up significantly intraday or ultimately result in you incurring a 100% loss. Be careful, and be safe, but again, take on some risk today to take advantage of these opportunities while attempting to trade.
If you have not already started to load up on value stocks, start allocating into these organizations at this time. I know I’ve been talking a lot about these two organizations a lot recently, but $DIS and $DG are two of my favorite allocations at this point. Assuming the markets move up accordingly here, these will not provide you the same sort of returns that organizations like $NVDA and $TSLA will provide you, but they still will have significantly less risk involved with allocating here.
For the people who do not want to take on risk, and get some relatively “risk-free” money, look to sell 0-DTE CSPs right here. There are many organizations that have fallen extremely hard recently and as a result will provide a sizable amount of premium for an extremely quick return. The one organization that I have in mind at this point is $RIVN. They did a note conversion yesterday resulting in the organization dropping 22%, providing us with an amazing opportunity to capitalize on this momentum. I personally would not recommend allocating into the organization just yet, but this is going to be an amazing time selling 0-DTE CSPs and collecting easy premium.
Personally, I do anticipate allocating in the markets today and actively trading when given an opportunity to do so. There are three types of allocations I am anticipating taking today. The play that I am the most interested in entering right now, is the $RIVN 0-DTE CSP depending on how much premium is provided in the $15-17 strike contracts. Assuming that the premium is significant, I will be riding those until I collect approximately 50-75% of the potential, and taking the positions off the table to assure minimal exposure into the end of the day. On top of this, I will be actively looking to play the $SPY 0-DTE Calls. This will be 100% a gamble, and do NOT recommend you take on any exposure here mostly due to the cost that is associated and the amount of risk that is involved, but assuming that the markets break out from this level, that position is going to return beautifully. Finally, on top of all of this, I will be looking to allocate in value in the markets right now. There are many organizations I can enter into right now, but I am still extremely interested in deep value and will be looking to increase my general exposure as a result of this.
As always, please be extremely careful in these market conditions as a result of the general momentum in the markets. Do not fight any trends, but try to take advantage of the opportunities that are available to us as a result of the movement we’ve seen over the previous couple of weeks. This is the time to look to take on some extra heat and risk, but be smart and diligent in the process. Do not risk more than you are willing to lose, and do not get greedy in the process.
If you want to watch any of my allocations, they will be posted live in the HaiKhuu Discord.
HaiKhuu Proprietary Algorithm Report:
Yesterday was a neutral day for the markets and that reflected in our systems. The movement that we saw was underwhelming and did not bring up any concern with the losses that were generated as they were neutral with no real losses being incurred at all in any way shape or form. We still are anticipating lifting our hold soon, so be on the lookout for Monday, to prepare for our newest system
To get an in-depth analysis of our algorithms' performance, check out Asher’s Report!
The results of yesterday are as follows:
Baseline:
$SPY: +0.03%
Our Results:
Variable Sector Neutral: +0.21%
Sector Neutral: +0.08%
Market Neutral: +0.01%
Variable Market Neutral: -0.04%
Base Algorithm: -0.08%
Long Term Portfolio: -0.19%
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 , $DIS , $DG , $TSLA , $NVDA , $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 10/06/2023
Unemployment Rate - 8:30 AM ET
Nonfarm Payrolls - 8:30 AM ET
Average Earnings - 8:30 AM ET
Labor Force Participation Rate - 8:30 AM ET
Notable Earnings for 10/06/2023
Pre-Market Earnings:
None Scheduled
Wrap up
Overall, this is going to be an extremely interesting time for the markets as a result of this insane pre-market movement. Look to take on some risk, and take advantage of the opportunities that are available to us. We should all have a great time. Look to take advantage on this increased volatility in the markets and look to sell some 0-DTE CSPs. This will be a good time and let’s end this week off with strength!
Good luck trading and let’s make some bank! Hope you all have an amazing weekend!