HaiKhuu Daily Report 10/12/2023
Good morning, and happy Thursday! Hope you beautiful people are doing phenomenally and are loving these market conditions. $SPY is up at the time of writing this report and is looking exceptionally strong going into open. If this day remains green from the previous close, this will be the 7th straight green trading day for the markets! It has been difficult navigating these conditions with confidence, but regardless of these conditions, the markets have provided us with a significant amount of opportunity to trade and realize gains in the process.
We have broken above the daily base line resistance and conditions are looking confusing and extremely optimistic, so tread lightly, but follow the momentum in the markets and attempt to capitalize on the opportunities that are available in these market conditions
Let’s have some fun and realize some gains while trading today!
The updated $SPY daily levels are as follows:
Conversion Line Support: $428.70
Base Line Support/Resistance: $435.63
Strong Psychological Resistance: $440
Weak Psychological Support: $430
Strong Psychological Support: $420
Daily Cloud Resistance: $444.96
$SPY Daily Candles - Bounce on Base Line [10/11/2023]
Thoughts & Comments from Yesterday, 10/11/2023
Yesterday was an extremely tough day to trade, but it provided us with an amazing opportunity to follow the market momentum leading into the FOMC minutes. We started the day looking strong, with $SPY opening the day trading at $435.75, up from the previous close of $434.54. We moved up at open to make the official high of the day, trading at $436.57, up slightly from the open price, before coming down and continually selling off throughout the entire day. The sell-off we watched was slow and difficult to trade, with many traders getting faked out in the process. There were times of brief optimism in the markets, but any bullish movement up quickly sold right back off. It was difficult navigating the markets with confidence, but we were still provided with opportunity after opportunity to scalp.
If you followed the momentum of the markets and were able to be bearish for the majority of the trading day, taking profits at the bottom, you would have done phenomenally.
The markets did not move much going into the lunchtime lull and afterward only continued to sell off, leading to the FOMC minutes being released. At the time of the release, we had just made a new official low of the day, trading at $433.18, looking extremely weak and not providing many opportunities for confidence.
As general information was released, we watched as the markets started to recover, and the recovery we saw was extremely nice. Within the first hour of the minutes being released, $SPY bounced back up to test $435 and be green again for the day. Power hour was beautiful and provided us with some strong momentum and confidence going into close.
$SPY continued to push up with confidence throughout the entire hour, ending the day green intraday, trading at $436.32. There was a beautiful V-shaped recovery in the markets, and if you went long at the bottom, you would have done phenomenally.
As I said yesterday, in hindsight, it would have been extremely easy to simply follow the market momentum, and as a result, would provide us with many opportunities to realize a significant amount of gains. It was a fun time actively trading, and actively realizing gains in the process was not difficult at all.
We had the $BIRK IPO also yesterday, which was lackluster but provided us with some sketchy but beautiful opportunities to realize a significant amount of gains with ease.
But regardless of what happened yesterday, let’s see what the markets have in store for us today. We should see many opportunities to trade again, so let’s have some fun and realize some gains.
Heatmap - $SPY 10/11/2023
Thoughts & Comments for Today, 10/12/2023
Today is going to be a fun day for the markets. There is relative strength at the moment as $SPY has continued to move up with confidence, but it is extremely difficult to navigate these conditions due to the strength that is provided by the mega-caps and value organizations showing relative weakness. We are still on fear on the fear and greed index, but at the same time, there is strength as the mega caps are sustaining this confidence in the markets. If today remains green, this will be the seventh green day in a row on the $SPY daily. We have not seen this many green days in a row for months, and it was followed up by a breakout. The dragonfly doji that we saw a couple of days ago has played out beautifully.
Continue to look for opportunities to capitalize on the market momentum, but be smart and cautious. We have seen a slight gap on the daily charts, and as a result, we can see either a continued breakout in the short term or watch as the gap gets filled.
I would recommend continuing to be cautious and not attempting to be overly bullish or bearish in these conditions, but to continually capitalize on the opportunities that are available in the short term while continuing to allocate into organizations that you personally have confidence in. There are multiple sources of deep value in the markets right now, and I have a significant amount of confidence in allocating to this value.
We are sure that you are tired of hearing me talk about this every day about allocating into value, but you have to remember that deep value in the markets, in the short term, is not going to provide you with a significant amount of returns or display and sort of “sexy” movement, but what we will see, is that a lot of these organizations in the short term are going to continually provide us with beautiful consistency on a larger timeframe.
Personally, I would not have the confidence to allocate to organizations like $NVDA, which is already up 225% YTD and is showing signs of weakness, when I can allocate to fundamentally solid organizations like $DG, which is down 58% YTD. There is continued potential with these mega-cap stocks, but I would not advise entering into any of these allocations long. If you are looking to allocate, look to allocate into strong companies that are having a difficult time navigating these short-term conditions but you know are going to continue to be strong over the course of time.
If you are attempting to enter into mega-caps, I would advise only actively trading and scalping these organizations. They have a significant amount of upside potential but not enough to want to enter into any of these organizations long and to hold them, as they are highly overpriced. By actively trading and scalping them, though, you will be able to capitalize on a solid amount of opportunity that is available to you while minimizing your generalized exposure.
Just continue to be smart in these market conditions, do not be over-leveraged or overexposed, and look to practice safe portfolio diversity. Having a mixture of allocations will provide you with opportunities to remain consistent regardless of market conditions and maximize your potential for profitability.
For my positions today, as always, I do not know how much I will be looking to actively trade, but I will consistently be looking for opportunities to scalp when there is confidence to do so and continue to hold my general positions. I am heavily allocated right now into $DG and may possibly look to start selling premium against my position in the short term, but I have a significant amount of confidence in the allocation over the course of time that the small amount of premium I would get for offering my shares may not be significant at all. It just depends on the premium that is available and at what strike price. I will let you all know what strike I ultimately decide on selling my $DG calls at, but understand that there will not be any sort of significant realized gains as a result of this passive method.
Practice safe risk management while trading today, and let’s take advantage of any and all opportunities that are available to us to trade!
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 relatively irrelevant day for the overall systems as the significant movement we saw in the markets was neutral on an intraday basis. $SPY outperformed both the fundamental analysis and the base algorithm by a slight margin, but nothing that would signify any sort of issues at all in any way. We are excited to continually watch this beta test perform over the next couple of weeks and anticipate seeing continued improvements to this experimental algorithm and confidence in market conditions.
To get an in-depth analysis of our algorithms' performance, check out Asher’s Report!
The results of yesterday are as follows:
Baseline:
$SPY: +0.16%
Our Results:
Variable Sector Neutral: +0.06%
Long Term Portfolio: +0.03%
Sector Neutral: -0.01%
Base Algorithm: -0.06%
Variable Market Neutral: -0.12%
Market Neutral: -0.2%
This is all part of our active live beta test of our newest algorithm. If you are attempting to allocate into any of these positions, we highly recommend you do your own due diligence prior to entry. We have confidence in this system but are not guaranteeing its success.
This is a live beta test and is not an officially published algorithm yet. We are still working on upgrading this system in the meantime and recommend you take these positions with a grain of salt. Practice safe risk management if you are attempting to find an allocation with this system.
Look for a position that has a beta you are comfortable taking on, and understand that larger allocations signify that the algorithm has more confidence in the allocation.
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 10/12/2023
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 , $DG , $DIS , $AAPL , $QCOM , $NVDA , $BA, $RTX , $NOC, $BIRK*
Position Opportunities:
Follow the market momentum
Limit your downside risk
Allocate into strong value organizations
LONG OPPORTUNITIES:
Long-Term Dividend - $GAIN / $JEPI
Long-Term Investment - $DIS / $DG
Economic News for 10/12/2023
Consumer Price Index - 8:30 AM ET
Jobless Claims - 8:30 AM ET
Fed’s Bostic - 1:00 PM ET
Notable Earnings for 10/12/2023
Pre-Market Earnings:
Delta Airlines (DAL)
Walgreens Boots Alliance (WBA)
Domino’s Pizza (DPZ)
Fastenal (FAST)
Byrna Technologies (BYRN)
Rocky Mountain Chocolate Factory (RMCF)
After-Market Earnings:
SMART Global Holdings (SGH)
Comtech Telecommunication (CMTL)
Wrap up
Overall, this should be an interesting time for the overall markets. Look to take advantage of the opportunities that are available and look to realize some gains when you have an opportunity to do so. Do not get greedy, but continue to look to take advantage of the opportunities in the markets right now. This will be a fun time in the markets today, so watch out and be cautious, but be smart and safe while attempting to trade!
Good luck trading, and let’s make some bank!