HaiKhuu Daily Report 11/01/2023
Good morning, and happy first day of Christmas! Markets are down slightly at the time of writing this report, and we have a significant amount of economic news coming out today that will heavily impact the direction and momentum in the markets, which ultimately will generate a significant amount of gains or losses to be incurred. I hope you all are excited, as this is going to be an interesting time.
We have economic news during the pre-market session, right after markets open, and have the Fed’s decision on the interest rates coming out at 2 PM EST and Jerome Powell speaking at 2:30 PM EST. This is going to be an extremely interesting time with inconsistencies in market momentum. Please be careful attempting to trade today, but just know that there will be many opportunities to realize a significant amount of both losses and gains.
Practice safe risk management, tread lightly on these confusing market conditions, and prepare for the worst but hope for the best.
Don’t get greedy, and attempt to remain consistent through these irrational market conditions.
Good luck trading today, and let’s have a great time!
The updated $SPY daily levels are as follows:
Conversion Line Resistance: $417.88
Base Line Resistance: $423.67
Strong Psychological Resistance: $420
Weak Psychological Support: $410
Daily Cloud Resistance: $438.70
$SPY Daily Candles - Bounce off $410 & Testing Daily Conversion Line Resistance [10/31/2023]
Thoughts & Comments from Yesterday, 10/31/2023
Yesterday was a beautiful day for the markets with some extremely strong bullish momentum that was extremely easy to capitalize on, and provided us with many great opportunities to simply buy and hold with confidence throughout the entire day. There was weakness at open, but despite this weakness, provided us with a beautiful opportunity to realize some gains.
$SPY started the day looking strong, opening the day trading at $416.25, up from the previous close of $415.59 but still down significantly from two weeks ago. Right at open, we watched as $SPY quickly was met with some bearish momentum and was sold off instantly from open, where there was no real bullish momentum throughout the entire morning, making the official low of the day trading at $414.22, breaking under that $415 psychological support, and testing people’s faith in the general markets.
After making the official low of the day, there was skepticism in market conditions as many organizations like $TSLA were displaying weakness but ultimately were quickly bought back up and secured some bullish momentum leading into the back half of the afternoon. $SPY quickly recovered all of the losses that were incurred and was hovering around the previous close and remaining relatively black throughout the lunchtime lull, not providing the markets with much confidence, but at least not generating fear in the process.
Not much happened during the lunchtime lull. Markets remained relatively stagnant and chopped around consistently between the open price and the previous close, with no major movement or boost in confidence, but maintained the short-term confidence leading into the afternoon.
As volume started to come back into the markets after the lull, it was apparent that there was a significant amount of confidence coming back into the markets as buying momentum picked back up, and as a result, we watched as the markets moved up extremely consistently during the back half of the trading day.
The buying was extremely consistent throughout the entire afternoon, as we watched $SPY go from trading black on the day, trading right under $416, to making the official high of the day, trading at $418.53 leading into powerhour. The final hour of the day did not sustain the general momentum in the markets, as we watched as $SPY dipped slightly and recovered by close but did not continue to provide the same opportunities that were available during the start of the afternoon.
We ended the day with $SPY trading at $418.20, up $2.61 for the day, or up approximately 0.6%, with an intraday bullish movement of 0.49%.
It was a beautiful day for the markets that provided us all with opportunities for consistent trades and realizing gain with relative ease. Anyone who was simply buying and holding should have done phenomenal yesterday, and anyone who attempted to trade and was able to catch the momentum in the markets should have done even better.
Let’s see what today has in store for us and take advantage of the opportunities that are available to us despite all of the economic news coming out!
Heatmap - $SPY 10/31/2023
Thoughts & Comments for Today, 11/01/2023
Today will be another confusing day full of opportunity. It will be interesting to see the general market movement as a result of both the general market sentiment as well as the pending economic news that everyone will be watching.
With the way the markets currently sit, we are still down from the top, in fear on the Fear & Greed Index, and are coming up to the daily conversion line resistance. With all of this in mind, we have bounced off the bottom but are displaying signs of strength during a time of weakness. I would advise you all to be extremely cautious at this time but to look to take advantage of the opportunities that are presented to us.
We have bounced nicely from the $410 support on $SPY and are showing signs of a POSSIBLE breakout, but that ultimately will come as a result of the Fed’s decision on the interest rates later today at 2 PM EST and the results of Jerome Powell explaining their reasoning at 2:30 PM EST.
I cannot comment on what I personally believe will happen, nor what I believe the markets may do as a result of this, but all I can say at this time is that there is a lot of confusion and conflicting sentiment in the markets that will make trading extremely difficult to do with consistency, and would advise that everyone be careful and tread lightly on these market conditions, but do what you can to maximize your potential for profit.
I would not advise trading between 2-2:30 PM EST unless you are extremely confident in your position and are willing to take on some risk, and if you are attempting to trade, simply follow the momentum in the markets.
The best way to navigate today consistently is not to trade around the Fed but to trade leading up to the event. I am assuming momentum will slow down after economic news comes out at 10 AM EST, and assuming that the sentiment in the markets at that time is bearish, to look for an opportunity to short and hold your position until the lunchtime lull, and attempt to cover at what is the relative bottom.
Once the bottom has been reached and you are confident in a reversal, attempt to play the momentum leading into the event and go long with the intention of exiting prior to the announcement leading into 2 PM.
This is obviously not financial advice, nor is it exactly what will happen, but we have seen this move play out time and time again leading into these FOMC events.
After 2 PM, all market rationality will leave the table, and genuinely, anyone’s guess on general market movement will be as valid as another, but realistically, watch out during this time and attempt to be careful while trading. Many people will have extreme difficulties navigating these conditions with confidence, and we will see extremely large movements that ultimately will make trading inconsistent and difficult.
Expect to see large snap-based movements in the markets that will render stops useless and cause a significant amount of discomfort for traders who simply do not know how to navigate these conditions.
The safest way to navigate those conditions is by simply not attempting to trade the quick momentum but being reactionary after the fact.
Assuming Jerome Powell speaks and the markets move up heavily as a result of him speaking, look for an opportunity to short, with a tight stop as he is leaving the stage, as this will be an amazing opportunity to capitalize on the movement Jerome created, and be careful in the process.
For myself personally, I do not anticipate trading around the Fed. The only exposure I anticipate taking on at that time is simple positions that, realistically, I will continue to hold indefinitely, and my sentiment will not change as a result of short-term market movement. I will not play into the momentum as a result of the initial reaction and will be looking to play defensively, attempting to capitalize on the aftermath of the general movements in the markets.
Please just be smart while attempting to trade today, practice safe risk management, and limit your downside risk and exposure as much as you can when you have an opportunity to do so.
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 amazing day for our algorithm as a result of both a positive performance of our fundamental analysis behind the long-term portfolio, as well as the positive results generated from our newest algorithm. Both have performed beautifully, and I am excited to see continued success from both the newest algorithm and the portfolio. Assuming that this live beta test works out as expected, we anticipate lifting this beta soon and publishing our full algorithm once there has been enough data from a live performance where we are confident in its performance. Expect to hear information about this soon, but know that we are excited about these live tests.
To get an in-depth analysis of our algorithms' performance, check out Asher’s Report!
The results of yesterday are as follows:
Baseline:
$SPY: +0.49%
Our Results:
Base Algorithm: +0.87%
Long Term Portfolio: +0.75%
Variable Market Neutral: +0.68%
Market Neutral: +0.5%
Variable Sector Neutral: +0.43%
Sector Neutral: +0.1%
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 11/01/2023
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 , $AMD, $TSLA , $NVDA , $KO , $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 11/01/2023
ADP Employment - 8:15 AM ET
S&P Manufacturing PMI - 9:45 AM ET
Job Openings - 10:00 AM ET
ISM Manufacturing - 10:00 AM ET
Construction Spending - 10:00 AM ET
Federal Reserve Decision on Interest Rates - 2:00 PM ET
Fed Chairman Powell Press Conference - 2:30 PM ET
Notable Earnings for 11/01/2023
Pre-Market Earnings:
Norweigan Cruise Lines (NCLH)
CVS Health (CVS)
Humana (HUM)
Kraft-Heinz (KHC)
Wayfair (W)
Generac (GNRC)
Estee Lauder (EL)
Builder FirstSource (BLDR)
After-Market Earnings:
PayPal (PYPL)
Roku (ROKU)
Qualcomm (QCOM)
Supermicro (SMCI)
SolarEdge (SEDG)
Airbnb (ABNB)
Etsy (ETSY)
e.l.f Beauty (ELF)
Marathon Oil (MRO)
DoorDash (DASH)
Wrap up
Overall, this is going to be an extremely interesting and inconsistent day for the markets. Be smart and safe in these market conditions and do what you can to maximize the potential you have for gains. Please practice safe risk management and be extremely careful trading around 2 PM EST as a result of the Fed’s decision on the interest rates.
Good luck trading, and let’s make some bank today!