HaiKhuu Daily Report 10/20/2023
Good morning, and happy Friday! Hope you traders are all feeling amazing and are excited to trade today. Market conditions have only continued to get worse as we have rejected the conversion line on the $SPY daily charts, and there is more fear setting into the markets. We are at the higher ends of fear on the fear and greed index, where one more bad day for the markets will lead us back into extreme fear.
Please continue to be careful and cautious in these market conditions, but look to take advantage of the opportunities that are available. If you are an active trader, use this as an opportunity to capitalize on the momentum in the markets, and if you are an investor, look for opportunities to simply buy and hold solid value organizations.
Do not fight the market momentum and simply follow the trends. Stay away from highly speculative or highly overpriced equities, and continue to practice safe risk management.
Look to sell some 0-DTE CSPs while volatility is high, and will provide you with an easy way to capitalize on the momentum in the markets.
This should be an interesting way to end the week, as max pain is bullish, with $SPY trading at $429, and today is the October Expiration.
Let’s end this week strong and realize a significant amount of gains while attempting to trade today!
The updated $SPY daily levels are as follows:
Conversion Line Resistance: $431.66
Base Line Resistance: $433.83
Strong Psychological Resistance: $440
Weak Psychological Resistance: $430
Strong Psychological Support: $420
Daily Cloud Resistance: $445.78
$SPY Daily Candles - Bounce on Base Line [10/19/2023]
Thoughts & Comments from Yesterday, 10/19/2023
Yesterday was an extremely choppy and confusing time for the overall markets that provided us with many trading opportunities but a significant amount of confusion and difficulties in trading consistently. Many traders were able to realize a significant amount of gains by capitalizing on the momentum, but the majority of individuals had an extremely difficult time remaining consistent.
$SPY started the day trading slightly green, opening the day at $430.89, right above the $430 support and providing the markets with slight confidence to start the day off. Right from open, market conditions were looking difficult as there was no significant movement up, and there was continual selling across the board. We got economic news at 10 am EST, which caused the markets to fluctuate and ultimately come down quickly to make the first low of the day, trading at $429 and remaining at that level, chopping around until we got to the lunchtime lull.
During the lunchtime lull, we watched as the markets quickly started to get some buying momentum, resulting in $SPY going green again and breaking back above the $430 support level. As the lunchtime lull ended, there was a perfect transition for market momentum as Jerome Powell was supposed to start speaking at noon EST, resulting in the markets continually moving up in the process. $SPY made the official high of the day as people were anticipating the speech, trading at $432.82.
Jerome Powell’s speech was delayed by 15 minutes as climate protesters took the stage and watched as $SPY quickly dropped to make a relative low right above $428, before recovering as Jerome started speaking. $SPY came back to test the high of the day, and that was the last of the bullish momentum throughout the rest of the day.
$SPY continually fell during the back half of the afternoon and continually made new official lows of the day. The momentum in the markets was extremely difficult to attempt to follow, as the bearish sentiment in the markets was strong, but the dip buyers had an extremely tough time as the markets just continued to dip. Going into close, we ended the day with $SPY making the official low of the day trading at $425.73, and ending the day trading at $426.43, down $3.78 for the day, or down 0.88%, with an intraday bearish movement of 1.05%.
It was an extremely difficult time for the markets as there was a significant movement that negatively impacted a large majority of traders but still provided us with many great opportunities to simply follow the market momentum and have a great time in the process of everything. Hopefully, you all were able to come out of yesterday relatively unscathed and were able to realize gains in the process. Congratulations to the individuals who were able to realize a significant amount of gains on the $NFLX run.
Let’s see what the monthly expirations have in store for us today, and look to have a great time in the process.
Heatmap - $SPY 10/19/2023
Thoughts & Comments for Today, 10/20/2023
Today should be another confusing time for the markets that will be extremely difficult to navigate as a result of the conflicting sentiment across the board. Many traders are going to be able to realize a significant amount of gains, and other traders are going to realize a significant amount of losses. Be careful attempting to trade today, but look to capitalize on the opportunities that are available to us.
With the way the markets sit, there is a significant amount of fear, and as a result, there will be some beautiful opportunities to buy and hold positions, but the problem that occurs is where the selling ends and when the buying begins. No one knows exactly when this is going to happen, and as a result of this, we are treading blindly, attempting to hope for the best.
At the moment, $SPY is below major support levels on a daily timeframe and is showing relative weakness through the pre-market session. The selling can easily continue as we come back down and test $420, and that price is very easily achievable as market conditions are looking extremely weak, and people are starting to get more fearful going into the earnings season.
I’ve been saying this for a while, and I’ll continue to say this. I do not recommend being overly bullish or bearish in these market conditions and will continue to advise you to remain relatively neutral and fluid with your sentiment in the markets right now, as anyone who is overly bullish or bearish will ultimately have a difficult time capitalizing on these confusing market conditions. Actively trading but remaining relatively neutral with your sentiment will allow you an opportunity to capitalize on both the bullish and bearish momentum in the markets instead of being hard-struck in a single direction and ultimately result in losses being generated as market conditions remain choppy.
The best way to allocate right now in these market conditions is not to attempt to trade for today or tomorrow but to continually look for opportunities to allocate into safety and into positions you are confident in. Personally, I am allocated very heavily to safety plays right now as these market conditions are not optimal in any way, shape, or form, and as a result of this, we are going to see a lot of confusion across the board. Being in safety organizations right now provides me with consistency and confidence in my allocations versus speculating and praying to see a larger movement that we might not see for a while.
This dip in the markets is providing us with an amazing opportunity to buy some great organizations at an extreme discount, and that by itself is going to provide us with a significant amount of upside potential, but I do not want to attempt to speculate on the general markets until there is a confirmation that we’ve hit a relative bottom, and are showing us signs of a reversal.
I cannot wait to allocate long into organizations like $TSLA, $NVDA, and $AMD, but I do not want to allocate into any of these organizations at this point, mostly as I do believe they are highly overvalued at the moment and realistically will continue to come down as there is weakness in the markets.
For my plans on how I anticipate allocating into the markets today, I am looking to take on a less risky style to my trading and not attempt to scalp during this weakness in the markets. I am anticipating selling some 0-DTE CSPs across the board and looking to capitalize on the increased volatility in the markets. This is obviously not a sexy play, but it is an extremely consistent way to generate realized gains on a Friday while volatility is high. I rather be safe and miss out on opportunities than be exposed and watch as the markets continue to slip. A couple of organizations I am looking to sell 0-DTE CSPs on are $TSLA, $RIVN, and possibly $RBLX, depending on how much premium is provided.
Continue to be safe and practice risk management in these market conditions, and let’s do everything we can to maximize the amount of gains we can realize while market conditions are looking extremely weak.
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 tough day for the markets and a tough day for our systems. The long-term portfolio underperformed slightly against $SPY, while the base algorithm underperformed against the long-term portfolio. It’s unfortunate that the systems underperformed yesterday, but as a result of the difficult market conditions, I am not overly concerned with the results as it is within a tolerable range, but it does not provide me with any increased confidence in the process. It is nice to see that despite the underperformance that came from the portfolio and the algorithm, the neutral strategies provided us with amazing safe havens across the board, providing us with relative safety while market conditions were less than optimal.
To get an in-depth analysis of our algorithms' performance, check out Asher’s Report!
The results of yesterday are as follows:
Baseline:
$SPY: -1.05%
Our Results:
Sector Neutral: -0.01%
Market Neutral: -0.14%
Long Term Portfolio: -1.13%
Base Algorithm: -1.37%
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 10/20/2023
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 , $DIS , $F , $GM, $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
Economic News for 10/20/2023
Fed’s Mester Speaks - 12:15 PM ET
Notable Earnings for 10/20/2023
Pre-Market Earnings:
SLB (SLB)
American Express Co. (AXP)
Comerica (CMA)
Autoliv (ALV)
Regions Financial Corp (RF)
Huntington Bancshares (HBAN)
Wrap up
Overall, just make sure to practice safe risk management today and make sure to limit your downside exposure as the markets are in a state of confusion. Look to sell some 0-DTE CSPs during this time as volatility has increased, and look to continually follow the market momentum if you are attempting to trade.
This will be an interesting way to end the week as max pain is bullish, and this is the monthly expiration, so take advantage of the opportunities that are presented to us, make some smart decisions, and let’s realize some gains!
Good luck trading, and let’s end this week strong!