HaiKhuu Daily Report 10/16/2023
Good morning and happy Monday! I hope you all enjoyed your weekend and are feeling great! Weather is starting to get colder, so expect to see more volume slowly come back to the markets as people are staying inside more. $SPY is up slightly at the time of writing this report and is showing strength going into open. As always, be cautious and careful, mostly in these market conditions, but take advantage of the confidence in the markets and realize gains while you can.
$SPY has rejected the daily baseline resistance and is showing relative signs of weakness, but there is support at the daily conversion line, and we are looking good at the moment. We are still in fear on the Fear & Greed index, which gives me the confidence to buy at this level. There are risks involved with allocating here while the markets are showing weakness, but the best time is to buy when there is fear.
General tech and mega-caps are still holding the markets up, so watch for a breakdown of these organizations in the near future and continue to purchase value when you have the confidence to do so.
This will be a fun week for the markets as there are a lot of earnings that will drive the sentiment in the markets. So look to be optimistic, but be realistic and tread lightly.
Let’s have some fun trading this week and make the most out of the opportunities that are available to us!
The updated $SPY daily levels are as follows:
Conversion Line Support: $428.95
Base Line Resistance: $435.63
Strong Psychological Resistance: $440
Weak Psychological Support: $430
Strong Psychological Support: $420
Daily Cloud Resistance: $445.08
$SPY Daily Candles - Rejection at Daily Baseline [10/13/2023]
Thoughts & Comments from Last Week
Last week was an interesting and extremely confusing time for the markets that provided us all with amazing opportunities to trade and realize a significant amount of gains with ease. We watched as many organizations did exceptionally well while watching as opportunities were consistently available.
We started the week with $SPY opening on Monday trading at $427.58, showing strength from open and continually pushing throughout the entire day. We bounced nicely off of the daily conversion line support and continued to move up into close, making a high of the day trading at $432.88 and ending the day trading at $432.29. This gave us the confidence to come up and test the daily baseline resistance throughout the rest of the week.
Tuesday did not have a large movement like Monday did, but the small movement up we saw was more significant. We started Tuesday, opening slightly above the close on Monday but showed a significant amount of strength in the markets as $SPY moved up and continued to push throughout the day, getting to the point of testing the daily baseline resistance. Baseline resistance was at $435.63, and $SPY made an official high of the day trading at $437.22, nicely above that level, but unfortunately came down into close, closing below that level and not being able to sustain it. We ended the day with $SPY trading at $434.54, under the daily baseline resistance.
Wednesday seemed like a better day for the markets as $SPY opened up nicely green for the day, opening above the daily baseline resistance at $435.64, but showed continued signs of weakness throughout the day. We went to dip heavily throughout the day, to go on and make the official low of the day trading at $433.18. We did recover into close, making an official high of the day trading at $436.58, right before closing the day at $436.32, slightly above that daily resistance, and displaying signs of confidence in the process.
Thursday is when we started to see a shift in confidence and relative weakness. If Thursday was a green day, that would have been seven green days in a row but was not able to sustain the momentum. We started the day with $SPY trading at $436.95, up slightly from the previous close and from open, displayed weakness in the markets. $SPY continually sold off and made trading extremely difficult in the process. $SPY quickly broke below the daily baseline resistance and continued to come down to make an official low of the day trading at $431.23. There at least was a small bounce by the end of the day, where $SPY came back up to close at $433.66, but despite this, there was not much confidence that came back into the markets.
Friday was not much better of a day, as there were a lot of false hopes as the markets were looking optimistic. To start the day off, $SPY opened the day trading at $435.20, up nicely from the previous close, and started the day with a solid amount of bullish momentum. We quickly rallied from open to make an official high of the day, trading at $436.45, and looked extremely strong in the process. It was all fun and games until the markets started to reverse and, as a result, continued to sell off for almost the entire day. We continually made new lows of the day going into the lunchtime session, which did provide us with a slight amount of bullish opportunity, but as the lunchtime lull ended and the bullish momentum faded, we watched as $SPY continued to come down, and test the $430 support level, and stop hunted a lot of traders in the process. $SPY made an official low of the day, trading at $429.89, and came up slightly into close. We ended the week with $SPY trading at $431.50, down $2.16 for the day, or down approximately 0.5%, with an intraday bearish movement of -0.85%.
Overall for the week, though, $SPY moved up approximately $4, or roughly 1%, with many opportunities to trade and have a great time in the process. We had organizations like $DG move up significantly while we watched as organizations like $MSFT, $GOOG, and $AAPL stayed relatively neutral. It looks like people are starting to take risk-off, as some of the best performers of last week were utilities, energy, and real estate.
Let’s see what this week has in store for us and have some fun in the process!
Heatmap - $SPY Weekly [10/9 - 10/13]
Thoughts & Comments for Today, 10/16/2023
Today is going to be a fun day for the markets. There is a lot of confusion that will make trading extremely difficult but extremely profitable if you can make the right allocations with a significant amount of confidence. At the moment, $SPY is between the baseline resistance, and it will be a toss-up on which direction we ultimately will go.
I think this is an amazing time and place to allocate long into the markets, with a tight stop as a result of the placement we have in the markets. Allocating into higher beta organizations at this time will obviously result in you taking on some risks, but at the same time, if the markets move up and break out, you will be able to realize a significant amount of gains. I would just make sure to have a stop set under the daily conversion line support as if we see organizations start to sell off as a result of earnings and negatively impact the markets, that will be the time to take risk off the table.
As I have said before, I am extremely interested in allocating to value stocks at this point. There are a lot of organizations that are highly undervalued, in my opinion, and as a result of this, we will be able to enter into fundamentally solid organizations at an extreme discount. A couple of organizations I am interested in entering right now are $F and $GM. Both are having issues right now as a result of the UAW strike. This, ultimately, at the end of the day, is going to heavily impact the performance of these organizations, but I believe that both are heavily undervalued as a result of this going on at the moment. I believe that once this passes, they will figure out their operations that, in the grand scheme of things, will not impact them that heavily, and as a result, I believe that this is a great opportunity to allocate in these organizations and hold. I would not recommend getting a full position in either of these organizations at the moment, but I believe that if you scale into both over the course of multiple weeks via purchasing equities, purchasing leaps, and selling CSPs, you will be presented with a phenomenal allocation. I am biased when I say this, but I would prefer allocations in $F than $GM, but recommend diversity among both of these organizations.
Risk management is going to be key to your success in the current marketplace, though, because we can continue to see that people are starting to take risk off the table and are allocating more towards value stocks and safety plays not only as a result of market conditions but global news. Safety is a great way to secure your positions and take risk-off. You will obviously not get a substantial return on your capital in comparison to allocating into organizations like $NVDA, but it will provide us with an amazing opportunity to have exposure with minimal risk.
Personally, I do not anticipate actively trading today. This is one of those days that I do not want to allocate too heavily as a result of the confusing and conflicting sentiment in the markets. Over allocating now will only result in a significant amount of losses to be generated, and overtrading will be the death of a lot of traders. I want to allocate slowly into organizations like $F and $GM while still looking to take advantage of the opportunities that are presented to me in the markets. We will see what happens over the course of the day, but this is one of those days that I do not recommend allocating too heavily and taking a significant amount of risk. Allocate for a larger timeframe versus trading and prepare for what should be an extremely interesting time for the markets.
If you want to watch any of my allocations, they will be posted live in the HaiKhuu Discord.
HaiKhuu Proprietary Algorithm Report:
Last week was a great week for the performance of the algorithm. We are not 100% confident in our systems yet, as one week of good performance is not indicative of continued success, but it is displaying signs of confidence that this is a step in the right direction. We still urge caution when taking any of these positions and to remember that this is a live beta test of the newest algorithm we’ve released. Assuming results continue to come back positively, we are going to continually improve and upgrade this system and keep you all updated in the process. But we are happy that the hold is removed and that our systems are back and operational at this time.
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: +0.01%
Our Results:
Variable Market Neutral: +1.03%
Market Neutral: +0.98%
Base Algorithm: +0.41%
Sector Neutral: +0.11%
Long Term Portfolio: +0.08%
Variable Sector Neutral: -0.04%
As I’ve said before, we are running a live beta test with our newest algorithm. These systems outperformed previous systems, and we are excited to see what happens, but at the same time, we are not blindly endorsing entries into any of these positions. This is all still a live beta test, and we cannot guarantee its success or state that we have 100% blind confidence in our processes.
We do recommend you do some due diligence with any of these positions but actively watch and allocate when you personally have confidence that lines up with our systems.
The best way to allocate is to find a beta weight you are comfortable taking on in the short term and find an allocation from the list with a larger allocation %, as that is going to signify more confidence in the position versus a lower % allocation. As always, practice safe risk management and limit your downside risk by setting stops on the positions accordingly.
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 10/16/2023
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 , $DIS, $F , $DG , $GM , $AAPL , $MSFT
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 10/16/2023
Empire Manufacturing Survey - 8:30 AM ET
Fed’s Harker Speaks - 10:30 AM ET
Notable Earnings for 10/16/2023
Pre-Market Earnings:
Charles Schwab (SCHW)
Yatra Online (YTRA)
After-Market Earnings:
ServisFirst Bancshares (SFBS)
Equity LifesStyle Properties (ELS)
FB Financial (FBK)
Enerpac Tool Group (EPAC)
CrossFirst Bankshares (CFB)
Wrap up
Overall, this will be a fun week for the markets. Watch out for earnings, as there will be a significant amount of confusion as a result of this, but still watch as we will be provided with many opportunities to trade and realize gains in the process. Make some smart decisions, have some fun, and let’s take advantage of the opportunities in the markets.
Good luck trading, and let’s make some bank this week!