HaiKhuu Daily Report 11/07/2023
Good morning, and happy Tuesday! Markets are down slightly at the time of writing this report, and this is going to be a continued interesting time for the markets as we are testing this daily cloud resistance. Please be cautious and not overly ambitious to trade, but look to follow the momentum in the markets and capitalize on the opportunities that are available.
We are at another make-or-break point in the markets, where we are at the daily cloud resistance on $SPY, and realistically are going to break the resistance and continue to move up accordingly with confidence, or we reject this level and come down. It would not surprise me if we followed the daily cloud resistance for a couple of days before ultimately finding a direction, but it is just a matter of general confidence in the markets right now.
After the movement we saw yesterday, I do not know if there is much market confidence at this level, as there is a lot of general confusion and uncertainty about the direction of the markets at this point.
Continue to tread lightly, hope for the best, and simply follow the market momentum.
Good luck trading today, and let’s make some BANK!
The updated $SPY daily levels are as follows:
Conversion Line Support: $422.75
Base Line Support: $423.67
Weak Psychological Support: $430
Strong Psychological Support: $420
Daily Cloud Resistance: $435.67
$SPY Daily Candles - Testing Daily Cloud Resistance [11/06/2023]
Thoughts & Comments from Yesterday, 11/06/2023
Yesterday was a tough time for the markets, with a significant amount of chop and terrible intraday movement. $SPY hardly moved, and the majority of traders had a difficult time. There were opportunities to trade but not enough confidence or momentum to attempt to capitalize on the movement. Overall, it was an extremely tough day to attempt to trade, and hopefully, you all were able to ride the momentum in the markets and minimize your losses in the process.
$SPY started the day looking good, as we were up nicely from the close on Friday and testing the daily cloud at open. $SPY opened the day trading at $435.46 and displayed confidence in the markets from open. This confidence was nice and displayed opportunities for us to capitalize on the momentum in the markets, but despite this confidence, the markets did not respect the momentum. $SPY quickly popped up to make the official high of the day, trading at $436.14, up slightly from open, but the movement up was not significant at all.
After making the high of the day, the markets continually chopped around, not making any sort of significant movement at all despite the placement we had in the markets. It seemed that the daily cloud resistance impacted the movement in the markets significantly in the process of trading yesterday.
The lunchtime lull did not provide the markets with opportunity at all. We just continued to remain neutral during that time, hovering around where $SPY opened for the day and only started to move as volume started to come back into the markets.
Once volume came back into the markets, $SPY continually dropped in the process, where we quickly went from black on an intraday basis to red on an overall basis. We continually sold off into the early afternoon and made the official low of the day in the back half of the afternoon, with $SPY trading at $433.68. After we made the official low of the day, though, it seemed that it was a quick test from the market makers, as during the back half of the afternoon, the markets continually rallied and displayed signs of confidence.
The markets rallied for approximately half an hour and were able to recover the majority of the losses that were incurred during the downside selling but remained relatively stagnant, leading into powerhour.
Powerhour itself did not have many significant moves as we remained relatively neutral for the large majority of the final hour, but within the last five minutes of the trading day, $SPY went on to make an extremely quick rally into the close, where we ended the day up slightly green both on an intraday and an overall basis.
$SPY ended the day trading at $435.69, up $1.00 for the day, or up approximately 0.23%, with an intraday bullish movement of 0.05%. It was an absolutely terrible day for the markets as it genuinely was just a tough time watching the markets not move at all. It would have been significantly better if the markets just continually fell versus keeping us all watching, knowing that there was just no movement.
We will just move on from a day like yesterday and hope to see more movement in the general markets today.
Let’s have some fun and see what happens today! It should be a good time, so let’s try and have some fun!
Heatmap - $SPY 11/06/2023
Thoughts & Comments for Today, 11/07/2023
Today, hopefully, has more momentum and opportunity in the markets, but it really ends up being dependent on the general market sentiment and how the markets end up reacting to the daily cloud resistance.
We are currently at the daily cloud resistance, and as I said before, we are at a make-or-break point in the markets. Realistically, we are going to do one of three things at this level. Break through the cloud and continue to move up, reject the cloud and continue to come down, or remain relatively neutral at the cloud and provide traders with an extremely difficult time if you are attempting to trade.
With the way the markets currently sit, $SPY is down slightly while we are continuing to remain at this arbitrary resistance level, and no one genuinely knows which direction we are going. As a result of this, there is going to be a significant amount of both confusion and conflicting sentiments in the markets. If you are attempting to trade, be extremely careful today until there is a confirmation of a direction the market is picking and enough momentum for you to be able to capitalize on.
This is going to be one of those days that I recommend that the majority of individuals simply sit on your hands and not attempt to trade in the short term until there is a confirmation of a direction in the markets. This is not the time to be overly ambitious or attempt to time out the perfect entry or exit. Sitting on the side is not going to be fun nor entertaining, but what it will do is simply save you from over-trading and exposing you at a time of relatively low opportunity.
If the markets do show signs of momentum and opportunity, obviously look to take that opportunity and realize some gains in the process, but do not be overly ambitious or attempt to trade when there is no opportunity available. Simply follow the momentum and trade when you are confident of the direction. Please practice safe risk management and do not be overly exposed at this time.
Personally, I do not think I will be attempting to trade as a result of the general confusion in the placement in the markets. If we see momentum and direction in the markets, I will attempt to play it, but only if I personally am comfortable and confident in the sentiment and direction in the markets. For my positions, I’d ideally like to see some strong bullish momentum as the markets break out of the daily resistance level and continue to move up after the fact. If this is not the case, I will be hesitant but be happy following some bearish momentum in the markets. The one thing I am worried about, though, comes down to if the markets simply do not move, and there is too much exposure where I have to sit through consistent chop. That is obviously not ideal, nor is it a scenario that I would want to get myself into.
As always, do not be greedy and tread extremely lightly on these market conditions. Watch for the market momentum and make some smart plays today.
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 time for the algorithm. It was unfortunate as market conditions were tough, but I am just not happy as the long-term portfolio performed in line with $SPY, underperforming by a slight margin, but the algorithm did underperform by a sizable margin. Obviously, a single day of results does not impact the overall performance or sentiment, but it is just unfortunate to see it happen in real-time. Hopefully the next couple of days, the algorithm will outperform in a way that we are able to have good results for the overall week!
To get an in-depth analysis of our algorithms' performance, check out Asher’s Report!
The results of yesterday are as follows:
Baseline:
$SPY: +0.05%
Our Results:
Variable Sector Neutral: +0.06%
Sector Neutral: +0.02%
Long Term Portfolio: -0.15%
Base Algorithm: -0.72%
Variable Market Neutral: -0.8%
Market Neutral: -0.84%
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 11/07/2023
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 , $DIS, $KO, $GM, $F, $DG, $NVDA, $MSFT, $TSLA
Position Opportunities:
Trade the market momentum
Set stops in guaranteed profit
Limit your downside risk
LONG OPPORTUNITIES:
Long-Term Dividend - $GAIN / $JEPI
Long-Term Investment - $DIS / $DG / $KO
Long-Term Auto Sector - $F / $GM
Economic News for 11/07/2023
US Trade Deficit - 8:30 AM ET
Fed’s Barr Speaks - 9:15 AM ET
Fed Gov. Waller Speaks - 10:00 AM ET
Consumer Credit - 3:00 PM ET
Notable Earnings for 11/07/2023
Pre-Market Earnings:
Uber (UBER)
Datadog Inc (DDOG)
D.R. Horton (DHI)
Celsius Holdings (CELH)
Emerson Electric (EMR)
Air Products & Chemicals (APD)
Bluebird Bio (BLUE)
Bowlero (BOWL)
Brink's Company (BCO)
GlobalFoundries (GFS)
After-Market Earnings:
Rivian Automotive (RIVN)
Devon Energy (DVN)
Upstart Holdings (UPST)
Occidental Petroleum (OXY)
Gilead Sciences (GILD)
Lucid Motors (LCID)
Corsair Gaming (CRSR)
Coupang (CPNG)
Robinhood Markets (HOOD)
eBay (EBAY)
Wrap up
Overall, this should be an interesting time for the markets. Hopefully, we find direction soon in the markets and will be able to capitalize on the momentum. Hopefully, the market movement of today is not like yesterday, where we simply are not able to trade as a result of the lack of momentum in the markets. As I said before, please practice safe risk management and simply sit on your hands until there is a confirmation of both a direction and momentum in the markets before you attempt to trade today.
Good luck trading today, and let’s see if there is market momentum for us to trade!