HaiKhuu Daily Report 10/30/2023
Good morning, and happy Monday! Hope you all had a great weekend and are excited for what should be another interesting week for the markets. $SPY has bounced nicely off $410 and is up at the time of writing this report, which is a general sign of confidence, but it is just a matter of is this confidence sustainable and able to continue to push throughout the day and show strength in the markets. There is a chance this is the relative bottom, but it is just a matter of the selling continues for us to continue to sell off and break down under $400.
Please be careful and cautious in these market conditions, and do what you can to limit your downside risk. Look out for opportunities to purchase equities at a phenomenal price, and take advantage of anything that presents itself to you here. At this point in the markets, we will see a significant movement in either direction. Selling will be extremely quick and unexpected, but buying, once it happens, will be consistent.
There will be a lot that I will go over later on in the report, so tread lightly on these market conditions and prepare accordingly, as this will be a difficult week but extremely profitable for some.
Good luck trading this week, and let’s make the most out of it!
The updated $SPY daily levels are as follows:
Conversion Line Resistance: $422.20
Base Line Resistance: $423.67
Strong Psychological Resistance: $420
Weak Psychological Support: $410
Strong Psychological Support: $400
Daily Cloud Resistance: $440.55
$SPY Daily Candles - Bounce off $410, Displaying signs of strength from the bottom, but relative weakness [10/27/2023]
Thoughts & Comments from Last Week
Last week was a wild week with a significant amount of bearish momentum that negatively impacted the markets and generated a significant amount of realized and unrealized losses. $SPY dropped approximately $9, or roughly 2%, with an even larger drop from the top to the bottom. It was extremely difficult navigating the markets or attempting to realize any gains. Hopefully, the downside did not negatively impact your performance too much, and you were able to minimize your losses in the process!
Monday started the week alright with an extremely confusing candle for the daily chart of $SPY. We opened the day trading under the $420 support, opening the day at $419.61, and watched as there was a significant upside and downside movement in the markets, as we made the official high of the day at $424.45, looking exceptionally strong, and made the official low of the day trading at $417.80, displaying signs of weakness. We ended the day with $SPY trading at $420.46, slightly above the $420 support level on $SPY, and showed opportunity in the markets.
Tuesday was a day of hope for the markets as we started to bounce off of $420 and showed relative strength in the markets. We opened the day trading at $422.65, showing strength, made an official high of the day trading at $424.82, and came down into market close, ending the day at $423.63. This was the last day of strength in the markets, as we continued to fall throughout the rest of the week.
Wednesday was the first sign of genuine weakness we saw in the markets as $SPY quickly broke below $420, as if there was no support there at all. We opened the day trading at $421.89 and continually slipped throughout the entire day. There was weakness in the markets and no buying momentum at all as we watched as organizations like $META drop on earnings and the markets not respecting that level. We went on to make a new relative low in the markets and made an official low of the day trading at $417.01, and bounced slightly to end the day trading at $417.55.
Thursday was a continuation of the bearish momentum in the markets as we continued to display signs of weakness in the markets. $SPY opened trading at $416.45, down from the previous close, and attempted to move up but slipped throughout the entirety of the day. $NVDA broke below $400 and showed a significant amount of weakness that negatively impacted the markets as a result. $SPY made the official low of the day, trading at $411.63, and did recover slightly into close, but ultimately ending the day at $412.55, down approximately 1.2% and continuing the trend of relative weakness.
Friday was really a nail in the coffin to end the week. We started the day with $SPY looking optimistic, up from the previous close, opening the day trading at $414.17, but that sentiment was quickly shut down as there was a significant amount of weakness in the markets. We watched as the entire morning lacked general momentum in the markets, and we displayed significant signs of weakness in the process. After the lunchtime lull, volume came back into the markets where the weakness in the markets quickly took over, as we quickly went black on the overall day to quickly sell off. $SPY dropped off in the early afternoon and continued to sell throughout the entirety of the afternoon. We made an official low of the day trading at $409.22 during powerhour and recovered slightly into market close, but ended the week officially at $410.68, down significantly for the day and down significantly for the week. It was a terrible time for the entire markets and displayed a significant amount of weakness in the markets. Hopefully, you all were able to come out unscathed, but it really was a difficult week for the entire markets.
As I said before, there was a significant amount of selling that negatively impacted people’s ability to navigate the markets, but hopefully, you all were able to capitalize on the opportunities that were presented to us and realized some gains in the process. The selling we saw last week was significant, and it was even worse as we broke through previous support levels, but now it is just a matter of attempting to pick up the shards and not get sliced in the process.
Hopefully, this week will be a better week as we start to see general confidence coming back into the markets, but we are not seeing many signs of strength at the moment, so continue to tread lightly and take advantage of the opportunities that are presented to us right now!
Heatmap - $SPY [10/23 - 10/27]
Thoughts & Comments for Today, 10/30/2023
Today is going to be another confusing day for the overall markets as a result of the general sentiment. We are displaying weakness right now as $SPY has continued to sell and has broken below the previously mentioned support levels, but we have bounced off of the bottom, resulting in slight strength and optimism.
Please be careful in these market conditions, as realistically, this selling can continue indefinitely, and it is not the time to be overly ambitious or over-allocate as there are signs of weakness. The best thing that you can realistically attempt to do right now is to allocate in positions you have confidence in holding and holding cash. The only place I would attempt to deploy right now is either a continued DCA position you’ve established before or to attempt to purchase deep value. There is value in many organizations that we are looking at right now, but it is a matter of having the proper sentiment when it comes to these organizations and understanding the realistic need to be able to remain liquid and solvent while the markets are irrational.
This selling is going to be extremely difficult to navigate in the short term and is not going to provide us with many opportunities to trade or allocate with confidence, but you need to buy when there is fear in the markets to get the best value. We are back in extreme fear in the markets, so it is just a matter of time until more fear comes into the markets, but just like a terrible thunderstorm, once it passes, there is a beautiful rainbow, and the sun shines again.
Remain solvent and allocate to positions you can hold at this point with confidence, and once the selling and fear have passed, go and collect your pot full of gold with some beautifully realized gains.
I would still continue to advise staying away from higher-beta tech organizations that are highly overvalued at this time, as realistically, once those organizations sell-off, there will be a significant amount of difficulties in the markets, mostly as there are multiple levels to test, like $NVDA $400, $TSLA $200 and $SPY $400. Once $NVDA breaks below $400 and displays signs of weakness, we will see organizations like $TSLA sell off again, and once that happens, $SPY $400 is going to be an easy level to break.
This is why I have continued to recommend allocating to value positions. Holding fundamentally solid organizations that are generally safe havens for investors will provide you with an opportunity to allocate with confidence, knowing that, realistically, you will be able to hold with little to no downside risk while market conditions are not optimal.
Just make sure to remain solvent at this time and practice safe risk management.
For myself personally, my sentiment remains the same in the short term. I do not anticipate trading too heavily at this time, but I want to continue to follow market conditions and take advantage of the opportunities that are presented to us. There is a significant amount of weakness in the markets, and I do not want to allocate where I personally am not confident. I will continue to allocate into value positions and increase my exposure as we start to see a shift in confidence, with people shifting their allocations from allocating to riskier speculative positions into safety and capitalizing on that shift in market sentiment.
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 definitely a tough week for both the markets and the algorithms. Our fundamental analysis of our long-term portfolio outperformed the markets by a slight margin, and the base algorithm underperformed both the long-term portfolio as well as $SPY. As a result of this, we are concluding our beta test of the previous algorithm and are moving to a new beta test of our newest system in anticipation that this new system will outperform the portfolio by a larger margin and meet our expectations. Hopefully, this system does work out as expected, and we will see what happens in a short period of time after this next live beta test.
To get an in-depth analysis of our algorithms' performance, check out Asher’s Report!
The results of yesterday are as follows:
Baseline:
$SPY: -2.36%
Our Results:
Sector Neutral: +0.62%
Market Neutral: +0.49%
Variable Sector Neutral: -0.54%
Variable Market Neutral: -0.85%
Long Term Portfolio: -2.04%
Base Algorithm: -2.59%
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 10/30/2023
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 , $NVDA , $TSLA, $KO, $DIS, $F, $GM, $AMD
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 10/30/2023
None Scheduled
Notable Earnings for 10/30/2023
Pre-Market Earnings:
SoFi (SOFI)
McDonalds (MCD)
ON Semiconductor (ON)
Western Digital (WDC)
HSBC Holdings (HSBC)
JinkoSolar (JKS)
After-Market Earnings:
Arista Networks (ANET)
Pinterest (PINS)
Transocean (RIG)
AGNC Investment (AGNC)
Public Storage (PSA)
Chegg (CHGG)
Amkor Tech (AMKR)
Cushman and Wakefield (CWK)
Wrap up
Overall, this is going to be a very interesting week for the markets. Continue to tread lightly as a result of these current market conditions, do what you can to maximize your profit potential, but continue to minimize your downside risk, as there is a large fall risk in the markets right now. Do not be overly ambitious, but look to take advantage of the deep value that is in the markets at this moment. Practice safe risk management and only participate in allocations you have confidence in.
Good luck trading this week, and do our best to realize some gains!