HaiKhuu Daily Report 10/09/2023
Good morning, and happy Monday! Hope you traders all had an amazing weekend! It’s gotten chilly up here in Chicago, so I hope you all have been bundled up and are staying warm! Markets are looking confusing after an insane bullish run we saw on Friday, with bearish momentum during the pre-market session, but as you know, as I say… C’est la vie.
The bond markets are closed today as a result of the banking holiday, which will result in lower general volume and momentum in the markets today. Be careful and cautious as a result of this, but might see some volatile intraday moves as a result. Be careful and cautious during this time, but take advantage of the opportunities that are available. I believe we should see some extremely strong market conditions here in the near future as we have bounced from the “bottom” and are displaying signs of strength, but it is just a matter of how sustainable this short-term confidence is.
Please be careful and cautious during this time, but take advantage of the discounts in the markets.
Let’s have a great time this week, allocate into strong equity positions, and realize a significant amount of gains in the process!
The updated $SPY daily levels are as follows:
Conversion Line Support: $426.02
Base Line Resistance: $436.93
Weak Psychological Resistance: $430
Weak Psychological Support: $425
Strong Psychological Support: $420
Daily Cloud Resistance: $445.07
$SPY Daily Candles - Broke & Testing Conversion Support / Resistance [10/06/2023]
Thoughts & Comments from Last Week
Last week was an interesting week for the overall markets. There was a significant amount of movement in both directions, resulting in a significant amount of difficulties across the board. Lots of traders were able to realize a significant amount of gains while others sat back and watched as they missed out on opportunities to realize a significant amount. It is unfortunate for some, but it is the reality of being a trader in the markets. There was slight bullish momentum across the board throughout the entire week, but that was met with significant bearish sentiment across the board.
We started Monday off relatively neutral, with not much significant movement overall. We started the day with $SPY trading at $426.62, dropped to make a low of the day trading at $424.46, and made the high of the day trading at $428.60. We ended Monday with $SPY trading at $427.31. From an overall intraday standpoint, there was not much movement overall as $SPY only moved up approximately $0.70 for the day, but the intraday movement was a significant amount of movement and volatility as $SPY moved 1% from the top to the bottom.
Tuesday was a rough day, being the only bearish candle on the daily last week. $SPY started the day trading at $425.06, down significantly from the previous close, and we watched as $SPY came down and consistently tested the $420 support throughout the day, making the official three-month low, trading at $420.18. It was an extremely tough time for the markets, but thankfully, there was a slight amount of buying as the markets recovered into close. We ended Tuesday with $SPY trading at $421.59.
Wednesday was a neutral day for the markets, with a slight recovery and confidence coming back into the markets. We started the day with $SPY opening at $422.07, looking relatively strong, dropping down to make the official low of the day, testing $420 again, and bouncing back into close, making the official high of the day trading at $425.43 before ending the day at $424.66. This provided us with confidence in the markets and allowed us an opportunity to trade and realize some gains.
Thursday solidified the confidence in the general markets as a result of the dragonfly doji in the markets. There was not much overall movement, but there was enough confidence that resulted in the markets having the ability to have a significant movement. $SPY started the day trading at $424.36, looking relatively weak, but had enough confidence to remain neutral throughout the day. We watched as the markets took a nose dive, coming down to $421.17 and bouncing back into close. We ended the day with $SPY trading at $424.50, up $0.14 for the day, and created that beautiful dragonfly doji.
Friday was a lot of fun, with a significant amount of potential and momentum across the board. $SPY started the day looking gross, opening at $422.01, down from the previous close of $424.50, but showed a lot of potential throughout the morning. We continually chopped around the open price and dropped off to make an official low of the day, trading at $420.60. After making the official low of the day, the markets displayed a significant amount of confidence resulting in the markets continually moving up throughout the lunchtime session into the end of the day. $SPY broke above the $430 resistance level and tested that level until close. We ended the day with $SPY trading at $429.54, up $5.04 for the day, or up approximately 1.19%, with an intraday bullish movement of 1.79%. There was an amazing opportunity to trade and lots more opportunities to miss out on a significant amount of gains.
This was an extremely interesting time for the general markets that provided us with an opportunity to trade and was generally difficult to navigate with confidence, but these are just the conditions for the markets at this point. Hopefully, you all were able to capitalize on the opportunities that were available, and let’s see what this week has in store for us and make the most out of the opportunities that are presented to us!
$SPY Heat Map - [10/2 - 10/06]
Thoughts & Comments for Today, 10/09/2023
Today is going to be another interesting time for the markets. At the time of writing this report, $SPY is down, but we’ve recovered nicely from the bottom. I believe there is going to be a significant amount of confusion as a result of the general sentiment in the markets. After Friday, there are going to be a lot of people who are bullish but are not confident in their sentiment, and there are going to be a lot of people who are bearish, who are overconfident in their sentiment. As a result, there is going to be a significant amount of chop and movement in the markets.
With the way the markets sit at the moment, there is a significant amount of confidence that has come back into the markets as a result of us breaking above the daily conversion line on $SPY, and as a result of this, plus the low volume in the markets as a result of the banking holiday, I believe that we are in a place that we can watch the markets move up easily with confidence. I would still remain cautious about these current conditions, but I would look to take advantage of the opportunities that are available when they are here.
I would not attempt to be overly bullish or bearish in these conditions but look for opportunities. Purchasing value will give us an amazing opportunity to trade, but it is just a matter of how long will this confidence remain as well as how long will value be in the markets until it is bought back up. I know I’ve been talking about $DIS for a while, and we’ve seen $DIS move up over 5% in the previous two trading days. I would not advise adding a significant amount here, as the value and load-up zone has passed us in the short term. I know that retail has been hit heavily over the previous couple of months and is due for a bounce and nice movement up soon, but it is not a matter of if but when.
Look to buy value when given an opportunity to do so, mostly when you have confidence. These conditions are not for the weak-hearted, and as a result, a significant amount of losses will be incurred as people are confused about these conditions.
If you are looking to actively trade, be extremely cautious as there is a significant amount of high beta tech organizations that will do phenomenally, and there will be many organizations that will chop around and make trading inconsistent.
I would not advise being overly ambitious in these market conditions, but I would look to take advantage of opportunities in these conditions. Lots of people are going to have an extremely difficult time, while others who want to take on a little bit more risk and are confident in their ability to navigate these conditions should do phenomenally.
Personally, I do not know how much I personally am anticipating to trade today as a result of this confusion in the markets. If I am looking to take on any plays at the moment, they will realistically be higher-beta scalps and day trades on tech organizations when I am given an opportunity to enter. I do not want to enter plays that I am not comfortable and confident in, but at the same time, I do not want to miss out on the opportunities that are presented in these conditions. I will look to continually add to $DG, by most likely adding leaps here in the near future around the $100 strike, depending on how expensive those contracts are, and continue to hold my value organizations over the next couple of weeks. I do not want to take on too much risk, but I want to look for opportunities that are available in these conditions.
As always, please make sure to practice safe risk management and limit your general exposure in these conditions. A lot of people are going to have difficulties remaining consistent, but if you are able to sustain yourself and remain profitable, you are in a great place to capitalize on the confidence in the markets.
If you want to watch any of my allocations, they will be posted live in the HaiKhuu Discord.
HaiKhuu Proprietary Algorithm Report:
We are finalizing our newest algorithm. Last week's performance is unfortunate, but C’est la vie. We have a new upgrade for our algorithm as well as the long-term portfolio. We are increasing exposure and allocating more in the portfolio to sector balance against the S&P 500. The beta test is going to be live after I speak to Asher later today and approve all of the upgrades we are launching. Please be on the look out for this and be excited for tomorrow!
To get an in-depth analysis of our algorithms' performance, check out Asher’s Report!
The results of last week are as follows:
Baseline:
$SPY: +1.78%
Our Results:
Variable Sector Neutral: +0.78%
Base Algorithm: +0.71%
Variable Market Neutral: +0.61%
Market Neutral: +0.43%
Long Term Portfolio: +0.2%
Sector Neutral: +0.06%
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 , $DIS , $DG , $MSFT , $TSLA , $AAPL , $NVDA
Position Opportunities:
Follow the market momentum
Limit your downside risk
Start allocating into deep value
LONG OPPORTUNITIES:
Long-Term Dividend - $GAIN / $JEPI
Long-Term Investment - $DIS / $DG
Economic News for 10/09/2023
Fed's Logan Speaks - 9:00 AM ET
Fed's Barr Speaks - 9:15 AM ET
Fed's Jefferson Speaks - 1:30 PM ET
Notable Earnings for 10/09/2023
Pre-Market Earnings:
Applied Digital Corp (APLD)
After-Market Earnings:
Saratoga Investment Corp (SAR)
Wrap up
Overall, this is going to be an extremely interesting time for the markets that are relatively inconsistent. Please be smart and safe in these market conditions and do what you can to maximize your profit potential at this time. We should be able to generate a significant amount of gains, but it is just a matter of confidence and conviction in these conditions. Practice safe risk management, but again, take advantage of the opportunities that are presented to us.
Good luck trading this week, and let’s make some bank!