HaiKhuu Daily Report 10/26/2023
Good morning, and happy Thursday! Apologies for the shorter report. We are having internet issues at the office, and I am not able to populate everything necessary for the full report. This is on me, and I apologize for the inconvenience. Thank you for understanding. This will be fixed as soon as possible and will be back to normal tomorrow.
We have a significant amount of economic news during the pre-market session that will ultimately impact both market momentum as well as general market sentiment, so please be careful and cautious when attempting to trade today.
At the time of writing this report, the markets are down significantly on general earnings and news, as $META is down approximately 3%, and we have continued to display general signs of fear in the markets. We have a significant amount
Please be careful and cautious when attempting to trade in these market conditions, and look to continue to protect your bottom line as practicing safe risk management is going to be the key to your success today.
Make some smart decisions, limit your exposure, and prepare for what is going to be an extremely difficult time for the markets. We are the higher end of fear on the fear and greed index, and realistically, we are going to be in extreme fear, assuming that market conditions don’t get better before the end of the day.
Look for opportunities to trade today, but this is not the time to attempt to be overly ambitious and attempt to overtrade.
Please be careful, and good luck navigating the markets today.
Thoughts & Comments from Yesterday, 10/25/2023
Yesterday was a tough day for the overall markets as $SPY displayed significant weakness throughout the entire day. There was continued selling, with no great opportunity to capitalize on any bullish momentum. It was a difficult day for the large majority of traders and was extremely tough on anyone who attempted to be hyper-bullish.
$SPY started the day trading at $421.92, down from the previous close of $423.63, and looked extremely weak in the process, as $SPY instantly dropped from open, where we made the official high of the day, at market open.
There was instant bearish momentum in the markets, which caused significant difficulties for the large majority of traders. $SPY dropped quickly to test $420 before breaking below without any signs of support or confidence.
As we traded below $420, there were signs of weakness in the markets, and fear started to set more into the markets. Thankfully, the markets started to move up going into the lunchtime session, resulting in $SPY breaking back above $420 and holding that level through the lull, but as volume started to come back into the markets, we watched as $SPY quickly dropped back below $420, and showed continued signs of weakness.
After we broke below $420, there was a significant drop in the markets, and continued selling as $SPY sold for the large majority of the afternoon. For the majority of the afternoon, there was no confidence, and we continually made new lows of the day.
Once the selling started to slow down in the back half of the afternoon, $SPY made the official low of the day, trading at $417.02, down significantly from open, and looked terrible in the process.
$SPY recovered slightly into close, but the final two hours of the trading day provided us with no opportunities at all and unfortunately resulted in a significant amount of chop.
We ended the day with $SPY trading at $417.55, down $6.08 for the day, or down approximately 1.5%, with an intraday bearish movement of -1.03%. It was a terrible time for the markets that provided us with almost no opportunities to capitalize on some bullish momentum. I hope that you all did alright and did not have difficulties trading yesterday, but I know for a fact that the large majority of individuals who attempted to trade had a tough time. That is just part of being in the markets, and we just have to continue to move forward. C’est la vie: life moves on, and so do the markets.
Let’s see what today has in store for us and try to make the most out of today!
Thoughts & Comments for Today, 10/26/2023
Today is going to be an extremely difficult day to trade. I cannot lie to you all; this is not going to be an easy day to trade and will result in a significant amount of losses, assuming you are not properly allocated or practicing safe risk management. Please be careful and tread lightly on these market conditions. With the way the markets are going, we have continued to sell during the pre-market session and are displaying significant weakness in the process. There will be a significant movement as a result of the economic news that we are waiting to come out during the pre-market session, but with the way the markets currently sit, it is not looking favorable for us.
$SPY has broken below the major support level, and we are displaying signs of weakness in the general markets. Being careful and cautious in these conditions is going to be the key to your success in the grand scheme of things. Remaining solvent now in these conditions will provide you with a beautiful opportunity to continually trade and take advantage of the opportunities in the future.
This selling, in the short term, is extremely difficult to navigate and is not optimal at all in any way, shape, or form, but the resulting factor is that regardless of these current conditions, this is going to provide us with an amazing opportunity to trade and to capitalize on the opportunities that will be presented to us in the near future.
I would highly recommend you continue to practice safe risk management in these market conditions and do what you can to maximize your potential, but focus more on your bottom line and minimizing your downside risk than focusing on the upside potential, as in these market conditions, is not the optimal time to attempt to be overly ambitious.
There is weakness across the markets right now, and as a result, this is going to continue to make trading extremely difficult in the short term, but this is why I’ve been constantly talking about holding value positions and attempting to minimize risk.
Once there are signs of reversal in the markets and we are starting to display general strength, that will be nice as the markets will provide us with opportunities to allocate into higher risk, more speculative organizations, but this is not the time to attempt to do so.
Personally, I do not know how much I anticipate allocating into the markets at this time. There is a significant amount of risk in attempting to capitalize on the momentum in the markets, and as a result, I do not want to take on the risks in the market right now. I have some speculative positions that I am not the largest fan of at the moment ($META), but the majority of my portfolio is allocated into safer allocations at this time. I do not anticipate allocating into high-beta positions in the short term, nor anticipate attempting to do so until I see some general feedback from organizations like $NVDA, watching that come back to what we believe is a “fair price” for the organization and it is showing us signs of reversal to bring the markets back. Until then, I will sit on my hands and attempt to capitalize on the short-term momentum in the markets and limit my general exposure as much as possible outside of the value positions I am holding at this point.
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 algorithm, but I am happy to see that there is a continued outperformance of our fundamental analysis in the long-term portfolio. The neutral strategies did well in comparison to the markets, and it is expected to see results like this when there are difficulties in the general markets. C’est la vie, it is a tough time, but there is not much we can do in the process while market conditions are not optimal. We will see what happens in the near future and see what we can do to maximize the potential of this algorithm in the near future.
To get an in-depth analysis of our algorithms' performance, check out Asher’s Report!
The results of yesterday are as follows:
Baseline:
$SPY: -1.03%
Our Results:
Market Neutral: -0.12%
Sector Neutral: -0.29%
Variable Market Neutral: -0.53%
Variable Sector Neutral: -0.71%
Long Term Portfolio: -0.89%
Base Algorithm: -1.15%
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 , $META, $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 / $KO
Long-Term Auto Sector - $F / $GM
Economic News for 10/26/2023
Jobless Claims - 8:30 AM ET
GDP QoQ Advance - 8:30 AM ET
Durable Goods - 8:30 AM ET
PCE Prices Advance - 8:30 AM ET
Wholesale Inventories - 8:30 AM ET
Advance Goods Trade Balance - 8:30 AM ET
Pending Home Sales - 10:00 AM ET
Kansas City Fed Manufacturing - 11:00 AM ET
Notable Earnings for 10/26/2023
Pre-Market Earnings:
United Parcel Service (UPS)
Hershey Company (HSY)
Southwest Airlines (LUV)
Altria (MO)
Keurig Dr. Pepper (KDP)
Bristol-Myers Squibb (BMY)
Northrop Grumman (NOC)
Comcast (CMCSA)
Valero (VLO)
PG&E (PCG)
After-Market Earnings:
Amazon (AMZN)
Enphase (ENPH)
Intel (INTC)
Chipotle (CMG)
Ford (F)
Sketchers (SKX)
Capital One (COF)
L3 Harris (LHX)
Boston Beer Company (SAM)
Wrap up
Overall, this is going to be an interesting time for the markets as a result of the economic news that has come out during the pre-market session and the general sentiment in the markets as we are in a fear state and are showing signs of continued weakness. Please be careful and practice safe risk management at this time, and protect your bottom line. Make sure to limit your downside risk at this time and allocate wisely when you have the confidence to do so. This is not the time to be overly ambitious. Be smart, be safe, and take advantage of the opportunities that are presented to us.
Good luck trading today, and let’s see what today has in store for us.