HaiKhuu Daily Report 10/31/2023
Good morning, and happy HALLOWEEN. I hope you Psycho Killers are ready for what is going to be a Thriller of a trading day. The Freaks Come Out at Night and the markets are up as a result of a solid futures session. We have bounced nicely off of $410 on $SPY, so at the moment, we are not on the Highway to Hell just yet, but we are in a Danger Zone. I would not recommend being too optimistic in these market conditions, but look to continue to take advantage of the opportunities that are available. Just make sure you are making smart trades today, and trade with the mindset that Somebody’s Watching Me.
Your portfolio doesn’t need to Die For You to trade today, so practice safe risk management and don’t bury a friend, as this is Turn Around Tuesday. Don’t be a Sucker for Pain, and make some Unholy trades today.
But back to reality, markets are looking good at the moment, but please be careful in these conditions as we are displaying signs of strength in these market conditions, but still significant weakness from the top. I’ll talk more about this later on in the report but have some fun while attempting to trade today.
Make sure you have some king-sized candy bars ready for what is going to be a spooky time.
Good luck trading today, you Scary Monsters and Nice Sprites, and let’s have an amazing day riding the market momentum.
The updated $SPY daily levels are as follows:
Conversion Line Resistance: $421.02
Base Line Resistance: $423.67
Strong Psychological Resistance: $420
Weak Psychological Support: $410
Daily Cloud Resistance: $440.55
$SPY Daily Candles - Bounce off $420, Displaying signs of strength from the bottom, but relative weakness [10/30/2023]
Thoughts & Comments from Yesterday, 10/30/2023
Yesterday was an interesting day for the general markets. There was a significant amount of volatility that provided us with some beautiful opportunities to trade and realize gains. Assuming you followed the market momentum and were able to time out your positions properly, you should have been able to realize a significant amount of gains with ease, and had a great time in the process.
$SPY started the day looking exceptionally strong as we opened the day nicely green, trading at $413.58, up from the previous close of $410.68, and displayed even more strength after open, as $SPY continued to rally throughout the first half hour of the day, testing and rejecting $415. Once $SPY rejected $415, we watched as the markets dipped down and test $412 within an hour of making the relative high, making the official low of the day with $SPY trading at $412.22.
After we made the official low, the selling slowed down, and markets chopped around during the lunchtime lull, not having much general momentum, but displaying signs of strength as the markets slowly moved up in the process of everything. As volume came back to the markets, we started to display signs of bullish momentum, but as expected in general market conditions, this was sold off. After we made a relative low again around 1PM EST, we saw that market conditions were actually turning around, and displaying signs of strength as $SPY broke out of the previous resistance levels, and quickly moved up leading into the back half of the afternoon.
During the back half of the afternoon, and other watched as the markets continued to move up with strength where we made the official high of the day during powerhour, with $SPY trading at $416.68. We came down slightly into close, and ended the day officially with $SPY trading at $415.59, up $4.91 for the day, or up approximately 1.2%, with an intraday bullish movement of +0.5%. It was a beautiful day for the markets that provided everyone with an extremely easy opportunity to realize a significant amount of gains in the process.
I hope you all were able to have fun and capitalize on the momentum yesterday, as it was genuinely an amazing day to trade.
Let’s see what today has in store for us and make the most out of these spooky market conditions!
Heatmap - $SPY 10/30/2023
Thoughts & Comments for Today, 10/31/2023
Today is an interesting day for the markets where sentiment is going to be filled with confusion, missed opportunities, and both realized gains and losses.
There is a significant amount of potential in the markets right now, and we have bounced nicely from what was the bottom, but we are not sure if this is a bounce from the bottom or a possible bull trap in the process.
I would highly recommend that you continue to tread lightly on these market conditions but do what you can to attempt to maximize your potential for realized gains. Follow the market momentum, actively trade, and continually capitalize on these conditions. We have strong momentum in the markets and a lot of confidence from the bottom. This should provide you with some beautifully realized gains in the short term, but just know there are a lot of risks involved with allocating here.
In the same way that we have moved up nicely from the bottom, we can come down, and we can come down extremely quickly, but at the same time, we can realistically continue to move up with some beautiful momentum. I would not advise you to be overly ambitious but to take these market conditions on a trade-by-trade basis. Look for opportunities to go long with confidence in deep-value organizations, sell premium while volatility is increased heavily, and look to maximize your potential by continually trading the momentum.
Just please be careful and cautious in these market conditions. Make sure you are practicing safe risk management, as despite the short-term confidence in the markets, there are still many signs of weakness, and we should not be overly confident in these conditions.
The one thing I will continue to recommend is continually adding to deep-value organizations. There are many organizations that have not been negatively impacted by this general market momentum, and there are a lot of safe havens that will protect you in the case that markets continue to sell off. One organization I have loved holding and will continue to hold over the course of time is $KO. Coca-Cola will not net you with any sort of life-changing realized gains, but it will provide you with a significant amount of safety and security in these current conditions, which will result in positive portfolio movement, regardless of market conditions. I personally am in $55 strike leaps on $KO, and I do not anticipate selling that position anytime soon. This realistically, despite being an option contract, is one of the safest positions that I have in my portfolio right now. I would not recommend that you blindly enter into this position, mostly right now, as we are already up 20% on this position in a short period of time, but look for positions like $KO that will provide you with this level of both safety and confidence.
For myself personally, I do not anticipate trading too much today. If we see a dip in $SPY, I may look to take advantage of an opportunity if it presents itself, but I do not want to be overly ambitious and attempt to trade right now. I have many positions that are open right now and am allocated heavily into deep-value organizations like $KO, $F, $GM, and $DIS, and have no intentions of selling them anytime soon. This market condition is looking amazing for people who are attempting to scalp, but it is going to be extremely difficult to remain consistent at this time.
Please just continue to practice safe risk management in these market conditions, but look to take advantage of the short-term confidence and momentum in the markets!
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 great day for our systems. Our long-term portfolio outperformed the markets, and the base algorithm outperformed the fundamental analysis of the long-term portfolio. This is what I would consider a great win for our systems, and am very excited to see that on day one of the newest beta test, we were able to outperform by a significant margin. Hopefully, this trend will continue, and we release a live version of this algorithm soon!
To get an in-depth analysis of our algorithms' performance, check out Asher’s Report!
The results of yesterday are as follows:
Baseline:
$SPY: +0.50%
Our Results:
Base Algorithm: +0.7%
Variable Sector Neutral: +0.6%
Long Term Portfolio: +0.56%
Variable Market Neutral: +0.41%
Sector Neutral: +0.26%
Market 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 10/31/2023
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 , $TSLA , $NVDA , $MSFT , $AAPL , $PSA , $K , $F , $GM , $DIS
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 10/31/2023
Employment Cost Index - 8:30 AM ET
S&P Case-Shiller Home Price Index - 9:00 AM ET
Chicago Business Barometer - 9:45 AM ET
Consumer Confidence - 10:00 AM ET
Notable Earnings for 10/31/2023
Pre-Market Earnings:
Pfizer (PFE)
Caterpillar (CAT)
JetBlue (JBLU)
Eaton (ETN)
Anheuser-Busch (BUD)
Marathon Petroleum (MPC)
BP plc (BP)
SiriusXM (SIRI)
SYSCO Corp. (SYY)
After-Market Earnings:
Advanced Micro Devices (AMD)
First Solar (FSLY)
Paycom (PAYC)
Caesar's Entertainment (CZR)
Amgen (AMGN)
Yum China (YUMC)
Lumen Tech (LUMN)
ONEOK Inc (OKE)
Wrap up
Overall, this should be another fun day for the markets if the momentum continues. Please practice safe risk management at this time and do what you can to maximize your potential for profits while continuing to minimize your risks and general exposure. This is going to be a spooky and interesting time for the overall markets, so do what you can to maximize your profits at this time and have a great time in the process while realizing some gains!
Good luck trading, and let’s enjoy some candy while the markets are looking sweet.