HaiKhuu Daily Trading Report

Good morning, and happy Thursday! Markets are starting to show signs of resistance and weakness here at $SPY $450, so prepare for what should be an interesting time for the markets, assuming we are not able to sustain this momentum. Please prepare accordingly for these market conditions and look out for opportunities to trade with confidence today. My sentiment remains the same where I advise you all to practice safe risk management and, look to consider some bearish allocations & hedges in these conditions and do what you can to maximize your potential for gains while there is confidence in the markets, as the confidence is starting to slip in the short term.

Do not fight this trend. Take advantage of any opportunities that are presented to you, and realize gains. Don’t get greedy, mostly in these conditions, and take every win generated in stride.

This is going to be another fun day for the markets, so I hope you all are doing well and are excited about today.

Good luck trading today, and let’s have a great time!

The updated $SPY daily levels are as follows:
Conversion Line Support: $442.39
Baseline Support: $430.29
Strong Psychological Resistance: $450
Strong Psychological Support: $440
Daily Cloud Support: $432.17

Thoughts & Comments from Yesterday, 11/15/2023

Yesterday was a tough day for the markets. We were green on an overall basis, but it was an extremely narrow day that was difficult to trade with confidence. Many people were able to capitalize on the opportunities that were provided as a result of choppy market conditions, but most people had an extremely difficult time navigating the markets on a consistent basis. If you were able to generate realized gains yesterday, great job!

We started the day off with $SPY looking strong despite coming down on PPI numbers during the pre-market session. $SPY opened the day trading at $450.10 and moved up nicely from open. $SPY quickly peaked and was quickly sold off, breaking below $450 for a split second before being bought back up, giving the bulls a great opportunity to trade confidence in the markets.

After, we saw some nice bullish momentum leading into the lunchtime lull, where $SPY went on to go and make the official high of the day, trading at $451.38, looking strong, nicely up from the previous close, and displaying general confidence in the process. But despite this process, we watched as volume started to come back into the markets, and there was a general dip, giving the bearish traders a great opportunity to short and realize some quick gains while attempting to scalp.

During the afternoon, there was some slight bearish momentum in the markets as $SPY was hovering at the $450 support/resistance level and ultimately dipping to make the official low of the day, trading at $448.81. This was another great opportunity to buy the dip as we watched the markets recover in the process, getting back up to $450, and continued to chop around that level for the rest of the day until close. It was difficult attempting to trade during the back half of the afternoon as a result of a lack of general momentum, but as we say, C’est la vie.

There were not many opportunities to trade throughout the back half of the afternoon as a result of the chop, but we did watch as $SPY dipped within the final twenty minutes of the trading day, going from right above $450 to ending the day right below $450. We ended yesterday with $SPY trading at $449.68, up $0.95 from the previous close, or up approximately 0.2%, with an intraday bearish movement of -0.14%. It was a tough day for the markets but was filled with opportunities to trade in the process.

The biggest thing about the movement we saw yesterday was the constant hovering and chopping around $450 and the fact the markets closed below that level again, displaying weakness in the process. Hopefully, we see some bullish momentum for us to get back above that support/resistance level, or ultimately, the markets are going to come down, and we are going to have a difficult time capitalizing on both the markets and momentum as there will be a lot of confusion and conflicting sentiment.

Thoughts & Comments for Today, 11/16/2023

Today will be another interesting time for the markets. We have shot to the upper end of Neutral on the fear and greed index, displaying signs of strength in the markets, and we are almost getting into greed. I would advise you all to be extremely cautious as we are at a point where the markets, in the case they move up, go up nicely, but in the case, the markets continue to sell off, have a rough couple of days.

I will continue to advise you all to take advantage of this momentum in the markets and do what you can to maximize your profit potential while there is this short-term confidence. If you are not attempting to trade right now but have a significant amount of holdings, I would advise you all to look to either take profits on equities you’ve picked up over the previous couple of weeks or at least look to set a stop in guaranteed profit to take all risk off the table and guarantee profit.

This is not the time to attempt to fight any trends and be hyper-bullish or bearish, but my same sentiment remains where I will continue to advise you all to look to open up some bearish allocations in the markets, mostly as VIX is still at a relative low, $SPY is showing signs of momentum slowing down and reversing at this $450 level, and there is a lot of confusion.

The worst-case scenario for opening a bearish allocation right now is that the markets continue to go up, but hopefully, assuming you allocate properly, you will lose towards the upside but make significantly more from the long holdings that will provide you with a significant amount of realized gains to offset those losses.

If this is a relative top, and you are able to pick up some cheap bearish exposure, you will be able to limit the downside exposure you have, as the bearish allocations you’ve created will help offset the downside potential you have and assist you in minimizing the losses that are generated.

Either way is realistically a winning scenario depending on market conditions and movement.

The only way this realistically is an issue in the short term is if the markets remain relatively stagnant and consistently chop around in the short term, where your equities do not move, and the contract continues to slowly decay as theta eats away at the position. But realistically, assuming you are practicing safe risk management and are not overallocated in a bearish position, there should be relatively minimal loss at this point.

This is just something you should consider in these conditions and is something you should take with a grain of salt.

Personally, in these market conditions, I am not overly ambitious to attempt to allocate into these conditions, and I am doing what I can right now to minimize the amount of general exposure that I have with my long allocations. Many of my positions are up nicely over the previous couple of weeks, and I have started to take some exposure off the table by selling a portion of my $DIS, and I will consider taking off some of my $F and $GM if those positions continue to move up. Safety is going to be my number one priority in these conditions. I may trade when I am given an opportunity if market conditions are strong and have solid momentum, but outside of that, I do not want to allocate too heavily or have much exposure on an intraday basis until there is momentum that I am comfortable with, that I know I can trade consistently. With VIX at these lows, I am a firm believer that it is almost dumb not to attempt to hedge any positions you are in, so highly consider hedging positions now.

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 the algorithm. It was a win across the board as the long-term portfolio outperformed $SPY by a slight margin and only generated a small loss, while the base algorithm was able to outperform the markets by a significant margin, being nicely profitable yesterday. It was a great win for the algorithm, but I do not want to get overly excited over a single day’s performance. We will have official data and a statement in regard to this algorithm at the end of the month once the live beta test is completed.

The results of yesterday are as follows:

Baseline:

$SPY: -0.14%

Our Results:

Variable Sector Neutral: +0.4%
Variable Market Neutral: +0.4%
Base Algorithm: +0.33%
Market Neutral: +0.33%
Sector Neutral: +0.29%
Long Term Portfolio: -0.05%

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.

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 , $BABA, $NVDA, $TSLA, $DIS, $AAPL, $MSFT, $WMT

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 11/16/2023

Jobless Claims - 8:30 AM ET
Import Price Index - 8:30 AM ET
Philadelphia Fed Manufacturing Survey - 8:30 AM ET
Industrial Production - 9:15 AM ET
New York Fed Pres. Williams Speaks - 9:25 AM ET
Home Builder Confidence Index - 10:00 AM ET

Notable Earnings for 11/16/2023

Pre-Market Earnings:

Alibaba Group (BABA)
Walmart (WMT)
Macy's (M)
Arcos Dorados Holdings (ARCO)
NICE Ltd. (NICE)
NetEase (NTES)
Warner Music Group (WMG)
Dole (DOLE)
Bath and Body Works (BBWI)

After-Market Earnings:

Applied Materials (AMAT)
Ross Stores (ROST)
Gap (GPS)
Beezer Homes USA (BZH)
Dolby Labs (DLB)
ZTO Express (ZTO)
UGI Corp (UGI)

Wrap up

Overall, this should be an interesting day for the markets as a result of conflicting market sentiment. If we remain under $450, expect to see some short-term weakness and a possibility of a continued sell-off, but if the markets bounce and show some strength, we should have an amazing time as market conditions are able to sustain the momentum necessary for the bullish movement we’ve seen throughout the previous two weeks. Follow the momentum in the markets and maximize your potential for gains while minimizing your risk.

Good luck trading today, and let’s realize some gains!

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HaiKhuu Daily Report 11/16/2023