HaiKhuu Daily Trading Report

Good morning, and happy Friday! Markets are looking strong and beautiful, with $SPY trading above the $450 resistance level. This could be the confirmation that we’ve been waiting for to be confident, so let’s see what happens not only today but here in the near future. This is going to be a fun time with lots of opportunities to trade and capitalize on the market conditions, but as always, please make sure to practice safe risk management in these conditions, as we have displayed a significant amount of strength in an extremely short period of time, which realistically needs to see a pullback.

Assuming the pullback never happens, get ready to enjoy some continued bullish momentum, so sit back, relax, and have an amazing time in the process.

Take on some risk in these market conditions, and let’s have some fun trading the momentum and the opportunities that are available to us! This is the monthly expiration, so I am expecting to see a larger move, and just make a mental note that max pain at the moment, despite being unrealistic, is currently $SPY $435.

Good luck trading today, and let’s end this week strong!

The updated $SPY daily levels are as follows:
Conversion Line Support: $442.51
Baseline Support: $430.41
Strong Psychological Support/Resistance: $450
Daily Cloud Support: $432.19

Thoughts & Comments from Yesterday, 11/16/2023

Yesterday was a tough time for the markets. I cannot lie about the conditions. It genuinely was a tough time navigating the markets as a result of the lack of momentum and an extremely tight range that made trading slow and difficult. If you were able to realize gains attempting to trade yesterday, congratulations, as you are in an extremely small minority of people who were able to generate any sort of gains yesterday.

We started the day with $SPY, opening the day slightly down, trading at $449.23, slightly below the previous close of $449.68. The markets were looking confused as we were retaining that $450 support/resistance level. Sentiment wanted to be bullish, but many people remained neutral in the process as general sentiment was conflicting, not knowing which direction the markets wanted to go after testing $450. $SPY did push from open, where we went on to make the official high of the day within the first half hour, trading at $450.55 and looking strong in the process, but despite breaking back above $450 and watching as there was optimism in the markets, it was quickly brought back down as buying momentum slowed down, and the sellers took charge. For the next two hours leading into the lunchtime lull, the markets remained relatively weak, making the official low of the day after volume came back into the markets, trading at $448.12. The low was a difficult time, but $SPY still remained relatively neutral for the day, as the selling was tough, but the overall movement was relatively minimal.

$SPY did pick back up and have some okay bullish momentum in the afternoon. We watched as $SPY went from the official low of the day to quickly rally back and go black before coming back down and chopped around. It again was difficult to capitalize on the momentum as it was extremely slow, and the markets remained in an extremely tight range for almost the entirety of the afternoon.

Thankfully, during powerhour, the markets did start to move up into close, where $SPY officially went green again for the day and ended up closing the day trading above $450. We ended the day with $SPY trading at $450.23, up $0.55 for the day, or up approximately 0.12%, with an intraday bullish movement of +0.22%. The movement itself into the close was not significant at all, but what the movement signified was.

The fact that $SPY closed above $450, despite being relatively weaker strength, still was a display of strength of the markets at this level, and us retaining this level for two entire trading days is looking to exhaust both buyers and sellers before we ultimately pick a direction at $450. Hopefully, we do see a breakout and a continuation of this momentum in the short term, but realistically, no one knows what is about to happen, as we are at a point in the markets with a significant fall risk.

Thoughts & Comments for Today, 11/17/2023

Today should be another fun day for the markets. I will say that there will be a lot of confusion and conflicting sentiment that may cause market momentum to continue to be relatively slow until we pick a direction, but after two days of general exhaustion at this level, I feel that we are at a point where the markets are going to pick a direction today, mostly as a result of the pre-market movement we’ve seen.

Hopefully, the markets do not remain relatively neutral and continue to trade in an extremely tight range, but it will be something that you should consider a possibility today. As I said earlier in the report, this is a monthly expiration, and max pain is currently at $SPY $435, which I do not believe is realistically in the range of consideration, but just make that mental note that max pain is bearish at the moment and there is a possibility of a large downside movement.

Ideally, the markets do continue to move up with strength as we are trading above the $450 support/resistance level and have the potential for a continued breakout at these levels, but to play devil’s advocate, we have moved up extremely quickly in what I believe is an unsustainable way, I believe that we do need to see the markets to come back down for us to realistically be able to continue this bullish momentum. I am not insinuating that the markets need to come back down and test relative lows again, but realistically, a 2-3% dip for correction purposes would bring up significantly more confidence from the people who want to remain bullish but are not as optimistic as they would want to be as a result of this continued bullish momentum over the previous two weeks.

Just remember that despite the conflicting sentiments that are in the markets and the confusion across the board, the markets can remain irrational longer than you can stay solvent. Look for opportunities to trade, and take advantage of any opportunities that are available to us. Ride the momentum and do not fight the trend, but understand how difficult it is to navigate these conditions both with confidence and consistency.

If you do not know how to allocate into these markets as a result of the current placement in the markets, my best advice for you is to simply not attempt to trade, as trading now, if you are not comfortable or confident, will lead to a significant amount of both weakness and losses being generated.

If you are confident enough to trade in these conditions, be safe and practice risk management. This is not the time to be overly ambitious, mostly if market conditions remain neutral, but simply ride the momentum and take advantage of the confidence in the markets.

For anyone who is in general long equities at this point, please continue to consider setting stops in guaranteed profit for the positions that you are in, as there is a significant amount of confidence in the markets at the moment, which will have net a significant amount of unrealized gains, so limit the downside risks in your portfolio, and guarantee as much profit as possible, while still having general exposure and the ability to capitalize on these market conditions.

Personally, my plans for the day are extremely simple. I will be looking for opportunities to allocate with confidence into the markets and will find a direction I want to take. Realistically, with these market conditions, I do want to be bearish, and I will be looking to get some 0-DTE puts, assuming that market conditions continue to look strong. This position is obviously going to be extremely risky as I have a 100% loss downside, but I will scale into the position accordingly and take on the risk and exposure I am comfortable with. With VIX being so low and uncertainty being high, I feel like the risk-reward ratio is highly favorable for a position like this right now, as in the case my sentiment is correct, my bearish allocation will pay off extremely nicely, but in the case that I am wrong, I am exposed comfortably, where I can happily take a small loss on the chin. Outside of the sentiment I have for the day, the same sentiment remains across the board where I want to make sure I am practicing safe risk management with the general allocations in the markets, and will not be adding any equities at this point, and will be looking to slowly scale out of the positions that I am in and sit on more cash in these conditions.

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 day for the algorithm. There really is not too much to be said on top of that. Tesla underperformed in comparison to the markets, which unfortunately caused losses in the portfolio, but there really is not much that can be done as a result of that. We were nicely allocated to Tesla yesterday, and the underperformance is unfortunate. Hopefully, the algorithm will improve by the end of the month when we have conclusive data to make an official statement, but this is one of those algorithms that I personally do not have much confidence in at this point. Please take these positions with a grain of salt, and we will see what happens in the near future.

The results of yesterday are as follows:

Baseline:

$SPY: +0.22%

Our Results:

Long Term Portfolio: +0.12%
Variable Sector Neutral: -0.08%
Sector Neutral: -0.12%
Base Algorithm: -0.36%
Variable Market Neutral: -0.6%
Market Neutral: -0.6%

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 , $AMAT, $WMT, $DIS, $NVDA, $AMD, $TSLA, $MSFT, $AAPL

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 11/17/2023

Housing Starts - 8:30 AM ET
Chicago Fed Pres. Goolsbee Speaks - 9:45 AM ET
San Francisco Fed Pres. Daly Speaks - 10:00 AM ET

Notable Earnings for 11/17/2023

Pre-Market Earnings:

Atkore International Group (ATKR)
BJ's Wholesale Club (BJ)
Spectrum Brands Holdings (SPB)
Destination XL Group (DXLB)
Twist Bioscience (TWST)
Yatra Online (YTRA)

Wrap up

Overall, this should be an interesting time to end the week. Please make sure you are following the market momentum and do what you can to maximize your profit potential at this time. Practice safe risk management and look to maximize the opportunities that are available to you right now. Do not be overly bullish or bearish, and just remember that max pain is currently at $SPY $435 and that this is a monthly expiration that will make trading more volatile and more fun today.

Good luck trading today, and I hope you all have an amazing weekend!

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HaiKhuu Daily Report 11/17/2023