HaiKhuu Daily Report 10/24/2023
Good morning, and happy Tuesday! Hope you traders are feeling great and have had enough espresso to prepare for what is going to be another insane day for the overall markets. At the time of writing this report, $SPY is up nicely from the previous close and is attempting to bounce off the $420 support. This is going to be another confusing yet interesting time for the markets that will provide us with many opportunities to trade and realize a significant amount of gains in the process.
With the way the markets are sitting right now, the same sentiment remains: we can easily move up, and we can easily come crashing down. The downside risk has decreased as a result of this momentum in the markets, and we have built confidence bouncing off of support, but we can easily sell off again. There are many catalysts in the markets right now that could easily result in this, from earnings, economic news, global news, and sentiment shifts, but that is all part of actively navigating the markets with confidence.
Continue to practice safe risk management, and do what you can to maximize your profit potential in these market conditions.
Good luck trading today, and let’s make the most out of the opportunities presented to us!
The updated $SPY daily levels are as follows:
Conversion Line Resistance: $427.97
Base Line Resistance: $431.12
Weak Psychological Resistance: $430
Strong Psychological Support: $420
Daily Cloud Resistance: $445.08
$SPY 1M Candles - $7 Intraday Range [10/23/2023]
Thoughts & Comments from Yesterday, 10/23/2023
Yesterday was an extremely wild day for the markets, with a significant amount of movement that could have been capitalized on with ease if you read the daily report or were active within the Discord. We called the movement yesterday and were easily able to capitalize on the significant movement in the markets!
$SPY started the day looking extremely weak, trading under the $420 support and looking extremely bearish. $SPY opened the day trading at $419.58 and showed a significant amount of weakness in the process. $SPY sold off continually within the first half hour, where we went down to make the official low of the day, with $SPY trading at $417.80. Once we made the low of the day, we were in a value range, where Carlos called a bounce to occur at $418 on $SPY.
My personal sentiment was to wait and purchase at the bottom and go long, but Carlos called out the bottom perfectly.
While going long at the bottom, we saw a significant amount of confidence get built up and get built up extremely quickly. The markets quickly snapped back to break above $420 and continued to rip and rally throughout the rest of the day. Going into the lunchtime lull, we watched as market momentum slowed down but still remained bullish, and as volume was coming back into the markets, we watched as there was some confusion as markets continued to remain relatively neutral but continued to provide a significant amount of confidence in the process. We watched as $SPY broke out for a brief moment and went on to make the official high of the day, trading at $424.44.
After making the high of the day, momentum slowed down across the board as we watched as there was general weakness in the process. $SPY slowly sold off throughout the rest of the day, coming back down to test the previous levels, and ultimately sold off again going into powerhour.
During powerhour, there unfortunately was not any bullish momentum, just consistent selling throughout the entirety of that final hour. We went from $423 all the way down to making lows of the afternoon. We ended the day with $SPY trading at $420.46, down $0.73 for the day, or down approximately 0.17%, with an intraday bullish movement of 0.2%.
It is interesting that if you look at those numbers, it does not seem like there was any significant movement overall in the markets, but if you look at the intraday movement we saw, there was over a 1.5% movement on $SPY from the low to the high, and almost 1% from the high to close. There were many great opportunities to trade and capitalize on the momentum in the markets. I hope that you all were able to capitalize on the opportunities that were available to us and were able to maximize the amount of profits you were able to generate yesterday!
Heatmap - $SPY 10/23/2023
Thoughts & Comments for Today, 10/24/2023
Today is going to be a fun day for the markets that will cause a significant amount of confusion but be filled with opportunity. With the way the markets have moved during the pre-market session, it will cause a lot of conflicting views in sentiment. We are currently in fear on the fear and greed index, while market conditions are looking optimal for a possible push to the daily conversion line.
There are going to be a lot of people who are optimistic and bullish, believing this is the bottom and that the markets are going to continue to move up, while at the same time, there are a lot of people who will be pessimistic, and believe that this is simply a bull trap, before we come back down, break the $420 support and continue to come down.
Realistically, no one knows what is going to happen in the markets, and anyone’s prediction is as valid as any other prediction. You should look at the markets on a trade-by-trade basis and continue to watch the current market sentiment. This is not the time to be aggressive while attempting to trade, but this is not the time to be passive. Look to follow the market momentum and allocate properly when given an opportunity to do so.
The best move is to capitalize on as many routes as you can take in these conditions. Trade when there are opportunities to capitalize on short-term momentum, sell premium against contracts while volatility is high at a price you are happy getting assigned equity at, and allocate into deep-value organizations that will provide you with a lot of safety in these conditions that will provide you with opportunity.
By doing these three things, you will continue to remain extremely consistent in the markets, and will provide you with some amazing opportunities. There are going to be many opportunities to remain consistent in the markets, and doing so in these conditions is going to be the key to your long-term success.
Just continue to be smart in these market conditions and do what you can to maximize the opportunities that are available to you.
As long as you can remain consistent, you will be provided with some beautiful opportunities to realize a significant amount of gains.
Personally, I am looking for opportunities to continue to allocate value in the markets, and with the performance of $KO and $GM during their earnings, I am very excited to see what happens with $F during their earnings season. I am interested in selling CSPs on them while IV and capitalizing on the increased premium in the markets. On top of this, I am looking to continually capitalize on the short-term volatility and momentum in the markets. I have been watching $RIVN for the previous couple of weeks and will be looking to allocate into them more over the course of time, trading the momentum in the short term until they ultimately sell off again, where I will look to sell premium against them until they get to the point where I am comfortable and confident allocating long in the organization. Until then, though, be like water, my friend, and be fluid with these market conditions.
This will be an amazing time full of opportunities, so let’s take advantage of the momentum in the markets and have a great time in the process!
If you want to watch any of my allocations, they will be posted live in the HaiKhuu Discord.
HaiKhuu Proprietary Algorithm Report:
Yesterday was an interesting performance from the algorithm. The markets continually outperformed the systems yesterday, but we can see that the performance of the bullish strategies correlated directly with the movement of $SPY, where we saw the exact same movement across the board. This continues to provide confidence in our systems to know that there is no direct correlation to $SPY with the portfolio, but the allocations throughout the day perform accordingly. If we measured against the equal-weighted SPY-100 Equal Weight portfolio, then our systems outperformed nicely. We will continually see what happens with this live beta test and hope for the best with the general performance before releasing this as our official portfolio.
To get an in-depth analysis of our algorithms' performance, check out Asher’s Report!
The results of yesterday are as follows:
Baseline:
$SPY: +0.20%
Our Results:
Long Term Portfolio: +0.02%
Variable Sector Neutral: -0.12%
Base Algorithm: -0.18%
Sector Neutral: -0.19%
Variable Market Neutral: -0.22%
Market Neutral: -0.29%
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 10/24/2023
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, $GOOG/L, $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 / $KO
Long-Term Auto Sector - $F / $GM
Economic News for 10/24/2023
Redbook YoY - 8:55 AM ET
S&P Services PMI Flash - 9:45 AM ET
S&P Manufacturing PMI Flash - 9:45 AM ET
S&P Composite PMI Flash - 9:45 AM ET
Richmond Fed Comp. Index - 10:00 AM ET
Notable Earnings for 10/24/2023
Pre-Market Earnings:
Coca-Cola (KO)
Verizon (VZ)
General Electric (GE)
Raytheon (RTX)
General Motors (GM)
Spotify (SPOT)
Dow Chemical (DOW)
Haliburton (HAL)
Nucor (NUE)
PacWest Bancorp (PACW)
After-Market Earnings:
Microsoft (MSFT)
Alphabet (GOOGL)
Snapchat (SNAP)
Boyd Gaming (BYD)
Texas Instruments (TXN)
Waste Management (WM)
Chubb Corp (CB)
Wrap up
Overall, this should be a fun day for the markets, with many opportunities to trade and realize a significant amount of gains. Let’s see what happens as a result of the general movement of the markets and earnings after hours to prepare accordingly and make the most out of the opportunities that are presented to us! Practice safe risk management and continue to follow the momentum in the markets!
Good luck trading, and let’s realize a significant amount of gains today!