HaiKhuu Daily Report 10/18/2023
Good morning and happy Wednesday! We all hope you are doing well and are having an amazing time trading in these exceptionally choppy market conditions. There are consistent opportunities to trade despite the difficulties that are surrounding the markets at this time. Please be careful and cautious, but continue to take advantage of the momentum in the markets as we consistently test this daily baseline on $SPY.
Just note that markets have been exceptionally confusing, and difficult to remain consistent, so as long as you are able to minimize risk while capitalizing on momentum, you will be in a great place. If you are having a difficult time, know that part of it is not up to you; it is a result of the current market conditions, but look at this as an opportunity to evaluate your current trading strategy and see what you can do to improve your strategy and decrease risk where possible.
This should be a fun time trading today, so let’s have a great time and attempt to realize some gains today!
The updated $SPY daily levels are as follows:
Conversion Line Support: $429.37
Base Line Support/Resistance: $435.63
Strong Psychological Resistance: $440
Weak Psychological Support: $430
Strong Psychological Support: $420
Daily Cloud Resistance: $445.78
$SPY Daily Candles - Bounce on Base Line [10/17/2023]
Thoughts & Comments from Yesterday, 10/17/2023
Yesterday was by far the most interesting movement we’ve seen in the markets in the short term. On an overall basis, there was no day-to-day movement, but if you look at the intraday opportunities, there were great opportunities to trade and capitalize on the bullish momentum in the markets, and at the same time, there were many opportunities to capitalize on the bearish momentum. It is unfortunate that there was a significant amount of intraday movement, but there was absolutely no movement on a day-to-day basis.
We started the day off with $SPY, opening the day trading at $432.86, looking bloody red, down significantly from the previous close of $436.04. Markets did not look strong during the pre-market session, and there was a lot of optimism at open, but it was difficult to be confident with that optimism. We quickly saw a slight bounce in the markets as $SPY broke above $433 and came right back down to make the official low of the day, trading at $432.46, looking terrible and bringing fear back into the markets.
After making the official low of the day, we watched as the markets moved up nicely with a significant amount of confidence in the process and continually pushing new highs of the day. $SPY quickly went from trading under $433 to going green for the day, trading above $436. There was strength and confidence in the markets after the lunchtime lull, as when volume came back into the markets, we continually pushed and continued to make new highs of the day.
$SPY went on to make the official high of the day, trading at $438.13, up over 1% from the bottom, providing people with many beautiful opportunities to capitalize on some bullish momentum in the markets and realize a significant amount of gains. After we broke out, we watched as market momentum slowed down and went on to start selling off during the afternoon session, where we quickly went from being green overall to coming back down and making a relative low, testing $435. This was unfortunate at the time, but it did provide us opportunities to capitalize on the bearish momentum in the markets and capitalize on the chop in the overall markets.
The day ended with $SPY trading at $436.02, with a significant overall movement on a day-to-day basis of approximately $0.02, or roughly 0.0046%, with an intraday bullish movement of +0.75%. On a day-to-day basis, as I said before, there was no movement overall, but there were many phenomenal opportunities to trade both to the bullish and to the bearish sides of the markets. If you timed your positions right, you should have generated a significant amount of both realized and unrealized gains in the process.
Let’s see what kind of confusion the markets bring to us today and make the most of it!
Heatmap - $SPY 10/17/2023
Thoughts & Comments for Today, 10/18/2023
Today is going to be a difficult day to trade and even harder to capitalize on the movement with confidence. With the way the markets sit, there is a lot of confusion in the overall markets, weakness being displayed through many routes, and American equities coming down in value. $NVDA is starting to show signs of weakness, and as I have been saying, is my personal indicator for when the markets are going to start to come down.
The markets are in a state of confusion, where there looks to be signs of optimism, but we are starting to display weakness leading into the earnings season. We have organizations like $TSLA and $NFLX having earnings after-hours today, and that is not even the largest earnings that people will be looking out for. We are all still waiting for $AAPL, $MSFT, $GOOG, and $AMZN to report, and that will be a major catalyst for a shift in market confidence.
If you find opportunities to allocate into the markets, I would highly recommend rotating out of tech as there is extremely high risk in allocating there in comparison to allocating into value. I’ve been saying this, and I will continue to say this, value plays will not generate a significant amount of realized gains, and I will never claim that they will. But what will happen is that allocating to safety will provide you with comfort in market conditions that are inconsistent and irrational. Organizations like $F may have movements that will negatively impact your position, assuming you time out your position incorrectly, but realistically, will remain relatively neutral in comparison to organizations like $NVDA and $TSLA, which will move extremely heavily as they are higher beta. But when push comes to shove, and speculative equities are highly overvalued like they are now, once $NVDA and $TSLA start to fall from grace, we will see tear-shedding blood, while organizations like $F will continue to remain relatively neutral, if not possibly move up in the process.
We are starting to see a general rotation out of speculative organizations at this point and are seeing people starting to allocate to more organizations like $KO, $DIS, $AAPL, and $F, while organizations like $NVDA have dropped almost 10% from their highs just from a couple of days ago.
I am not saying do not attempt to capitalize on movements in tech, but I am saying to stay away from allocating into tech at the moment. If you see potential and an opportunity, feel free to trade organizations like $NVDA and $TSLA, but I would advise a significant amount of caution if you are attempting to purchase and hold these organizations at this time. It is the overall risks that are involved with holding these overpriced equities that I am cautioning you about, but if you are actively trading, scalping, and capitalizing on short-term momentum and opportunities, do as you please as this will provide you with a significant amount of gains in a short period of time assuming the allocation works out in your favor.
For myself personally, I am looking to enter into leaps on $KO at this time. I already have a significant amount of safety in the markets at the moment and am looking to take on a little bit more exposure. I do not anticipate adding any more to my general value in the short term, but assuming that everything is working as expected, I am comfortable holding my allocations at this time. I do anticipate attempting to trade in the short term, but I do not expect to have a significant amount of general exposure in day trades today. I will play when I have confidence, but I do not anticipate taking on too much risk at this time. I have heavy allocations in value already, but with the way $KO is setting up, this is showing us signs of reversal from the bottom, providing me with enough comfort to allocate at this time.
If you want to watch any of my allocations, they will be posted live in the HaiKhuu Discord.
HaiKhuu Proprietary Algorithm Report:
Yesterday was another win for our systems. It looks like the newest portfolio we’ve built has performed as expected and is consistently beating out the markets by a slight margin, which is a great win, and our technical analysis is outperforming the markets, which brings confidence back into our algorithm.
We are still in a live beta test phase with this newest system for relative safety and will still advise caution when attempting to take on any of these allocations at the moment. We will look to continually improve these systems with time to assist in capitalizing on these market conditions and are happy to say that the performance of this newest algorithm has been a success so far.
To get an in-depth analysis of our algorithms' performance, check out Asher’s Report!
The results of yesterday are as follows:
Baseline:
$SPY: +0.75%
Our Results:
Long Term Portfolio: +0.84%
Base Algorithm: +0.8%
Variable Sector Neutral: +0.52%
Variable Market Neutral: +0.46%
Market Neutral: +0.2%
Sector Neutral: +0.05%
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 10/18/2023
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 , $KO , $F , $DIS , $GM , $AAPL , $NVDA , $TSLA
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 / $KO
Long-Term Auto Sector - $F / $GM
Economic News for 10/18/2023
Housing Starts - 8:30 AM ET
Building Permits - 8:30 AM ET
Fed’s Williams Speaks - 12:30 PM ET
Fed Beige Book - 2:00 PM ET
Notable Earnings for 10/18/2023
Pre-Market Earnings:
ASML Holding (ASML)
Procter & Gamble (PG)
Morgan Stanley (MS)
Abbott (ABT)
U.S Bancorp (USB)
M&T Bank (MTB)
Nasdaq (NDAQ)
Ally Financial (ALLY)
Travelers Companies (TRV)
State Street (STT)
After-Market Earnings:
Tesla (TSLA)
Netflix (NFLX)
Alcoa (AA)
Lam Research (LRCX)
Discover Financial Services (DFS)
PPG Industries (PPG)
SAP SE (SAP)
Equifax (EFX)
Steel Dynamics (STLD)
Liberty Energy (LBRT)
Wrap up
Overall, this should be an interesting time for the markets as we are consistently chopping around the daily baseline resistance. Watch for a directional move in the markets and look to capitalize on the opportunities that are available to us right now. Make sure to practice safe risk management and know that we have a significant amount of earnings that are coming up that will impact market sentiment and momentum for the foreseeable future.
Good luck trading today. Let’s have some fun and make some bank!