HaiKhuu Daily Trading Report

Good morning, and happy Monday! Hope you all had an amazing weekend and are excited for what is going to be an extremely fun yet unconventional trading week. Just as a reminder, it is Thanksgiving this week, meaning that trading is going to see lower volume, lower momentum, and a higher likelihood of bullish momentum in the process. Monday - Wednesday are normal trading days this week, but Thursday is off as a result of Thanksgiving, and Friday is a HALF day, where the markets close at 1 PM EST.

The previous couple of years this week has been extremely choppy and difficult to navigate, so watch out for $SPY to retain this $450 support level, and do what you can to maximize your profit potential on this shortened week. We are at a consolidation period in $SPY, so please expect a large movement in the markets once there is a direction, and do not attempt to fight the trend once it is confirmed.

I hope you all have a great time and are prepared for what is going to be a fun week!

Good luck trading this week, and let’s make some BANK!

The updated $SPY daily levels are as follows:
Conversion Line Support: $442.41
Baseline Support: $430.32
Strong Psychological Support: $440
Daily Cloud Support: $432.19

Thoughts & Comments from Last Week

Last week was a tough week for the markets. There was significant bullish momentum as a result of CPI data pumping the markets above resistance and general confusion in sentiment, which caused $SPY to remain relatively neutral in the process. $SPY is in a consolidation period, signifying we are going to have a large move here in the near future, but it is just a matter of what direction we are going and what would cause the most pain and destruction.

We started the week off looking alright as $SPY was looking strong going into open testing the daily cloud resistance on Monday. $SPY started the week trading at $439.23, down from the previous close but testing the daily cloud resistance and displaying some relative strength in the process. There was weak bullish momentum throughout the day, and thankfully, enough strength to cause the markets to move up, testing and holding above $440 and the daily cloud resistance leading into CPI, which was the largest bullish movement we’ve seen in an extremely short period of time.

CPI on Tuesday was the most significant move we watched throughout the entire week. During the pre-market session, CPI data came out, causing the markets to rip and rally. CPI came back hot, and $SPY opened the day trading at $446.32, up significantly from the previous close of $440.19, and continued to rally throughout the entire day. It was an absolutely beautiful day but felt extremely slow in the process as the markets continued to push up about another half percent intraday. The intraday movement was great, but it just felt slow as a result of the large movement we saw during the pre-market session dwarfing the intraday movement. We did get up to test $450 intraday but unfortunately rejected it and came down slightly into close. We ended Tuesday up beautifully at $448.73, displaying strength and opportunity to reach $450.

The rest of the week was extremely slow as a result of $SPY continuing to hover around $450, not displaying an excessive amount of strength as we continually retained that level, but did not display weakness as we were able to hold that level. The range on Wednesday between open and close was roughly $0.40, hovering at $450, and Thursday was a slightly better day as $SPY was able to break and hold above $450, with a larger intraday range of roughly $2.40.

Friday was the day with the most opportunity to trade during the back half of the week. $SPY opened on Friday trading at $450.19, down slightly from the previous close, and retained a relatively neutral sentiment for the large majority of the day. The markets only started to pick up during the back half of the afternoon and watched as there was some significant bullish momentum leading into the early afternoon, as $SPY rallied from the $450 level to make the official high of the day at $451.42. $SPY did come down into the back half of the afternoon but retained looking strong above $450, displaying hope and optimism in the markets. The issue was right before the markets closed. There was news that Sam Altman was being removed from his role at OpenAI, resulting in $MSFT dropping significantly in the process. $MSFT went on to make the official low of the day, trading at $367.00 and recovering slightly to close. $SPY ended the day trading at $450.79, up $0.56 for the day, or up roughly 0.12%, with an overall movement throughout the entire week being $11.53, or roughly 2.6%.

The majority of the movement came from CPI data coming out during the pre-market session on Tuesday, and there was a lack of momentum as $SPY reached $450, retaining the consolidation phase in the markets. It is great to see a slight bullish edge in the markets during the consolidation phase, but it is not bullish enough to break out. Continue to watch out for the large directional move here at $450, as we are either going to pump and make a new 52-week high on $SPY or come down and cause some pain in the process.

Thoughts & Comments for Today, 11/20/2023

Today will either be an amazing time for the markets, or we will continue to remain within this general consolidation phase. Hopefully, we do see some movement in the markets because we have retained this level for the previous three trading days, and it would be nice to see some movement, but realistically, could be an extremely difficult time to navigate as markets remain relatively neutral and continually chop at $450.

If the markets start to pick up and there is momentum, do not fight the trend. The easiest way to capitalize on a momentum-based movement is by going long in an organization that has a higher beta and is leading the trend, entering in the direction you want to play, and then simply setting a stop in guaranteed profit to limit your downside risk and exposure as much as possible. Continually adjust that stop to secure more profits, and let the play continually move in your favor, and once you see momentum slowing down or a sign of a reversal that would go against your position, simply let the stop get hit or take profit with ease.

If the markets continue to remain relatively neutral, as much as I hate saying this, the best way to capitalize on that momentum is to simply not touch the markets. If $SPY is constantly chopping within an extremely tight range, yes, you will be able to play a position and capitalize on the movement, but there is honestly no reason why you should attempt to play a small $0.10 - $0.25 range on $SPY because more often than not, you will become the liquidity for the market makers. If you really want to trade and need to fight the lack of momentum in the markets, maybe just withdraw some of your money and go to a casino because you will be overtrading and will have better odds of winning anything substantial by simply betting red or black on roulette.

This consolidation phase does concern me a little bit as we are coming into the end of the year, and many organizations, in my opinion, are highly overpriced, but at the same time, this does give me confidence in the equities that I am in right now. By purchasing and holding deep-value organizations, I know that I can comfortably and confidently hold my positions with little to no downside risk at this time and can continue to realistically hold these positions indefinitely with confidence, assuming that I do not need to utilize the capital elsewhere. This may not provide me with the largest returns in a short period of time, as over the past week, $TSLA is up roughly 9%, while $DIS is only up 6.5%, and $F is only up 5%, but these provide me with enough confidence to know that regardless of the general market condition, that I will be able to sleep soundly, knowing that I am not going to be stressed waking up knowing that my allocation close to ATH on $NVDA is possibly down 5-10% overnight.

The biggest thing to continually look out for in these market conditions is to make sure you are practicing safe risk management. That will be the key to your success in these market conditions and will assure that you have the ability to continually capitalize on promising market conditions in the future. I would highly recommend that you consider looking into hedging your positions right now as VIX is still at this relative low, meaning you can get extremely cheap bearish exposure while markets are at this relative high and are in a state of general confusion.

Personally, I do not have many plans to allocate to the markets today. In the case market conditions do strengthen and provide us with an opportunity to trade with relative confidence, I will attempt to take advantage of the momentum in the markets, but realistically, I do not want to put myself in harm’s way in these conditions. I believe that there is going to be an extremely large momentum-based move in the markets in the near future, and the exposure that I have in the markets right now is at the level that I am comfortable with, adjusted for my current portfolio. I will look to circulate my allocations over the next couple of weeks, assuming market conditions pick a direction, but while we are in this consolidation period, I do not anticipate being overly bullish or bearish.

If you want to watch any of my allocations, they will be posted live in the HaiKhuu Discord.

HaiKhuu Proprietary Algorithm Report:

Last week was an alright time for the algorithm. With some days that underperformed our expectations and some days that outperformed our expectations, we were able to see a more accurate statistic on a larger timeframe of the overall performance of the algorithm. It is unfortunate that the base algorithm underperformed slightly in comparison to both the long-term portfolio and $SPY, but it is within an acceptable margin and range of performance to understand that the performance was in line with the general markets. Not an insane week, but thankfully not a terrible week. We will see what happens as we finalize our live beta test and see how the algorithm performs this week.

The results of last week are as follows:

Baseline:

$SPY: +1.01%

Our Results:

Long Term Portfolio: +0.94%
Base Algorithm: +0.84%
Variable Market Neutral: +0.31%
Variable Sector Neutral: +0.31%
Market Neutral: +0.03%
Sector Neutral: -0.08%

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 , $MSFT , $AAPL , $NVDA, $F, $GM, $DIS

Position Opportunities:

Trade the market momentum
Set stops in guaranteed profit
Limit your downside risk
Consider hedging your positions

LONG OPPORTUNITIES:

Long-Term Dividend - $GAIN / $JEPI
Long-Term Investment - $DIS / $DG / $KO
Long-Term Auto Sector - $F / $GM

Economic News for 11/20/2023

Leading Economic Indicators - 10:00 AM ET

Notable Earnings for 11/20/2023

Pre-Market Earnings:

Niu Technologies (NIU)
Legend Biotech (LEGN)
Full Truck Alliance (YMM)
Enlight Renewable Energy (ENLT)

After-Market Earnings:

Zoom Communication (ZM)
Agilent Technologies (A)
Symbiotic (SYM)
Keysight Technologies (KEYS)
Trip.com Group (TCOM)
Golub Capital (GBDC)
BellRing Insurance (BRBR)

Wrap up

Overall, this is going to be an extremely interesting week as a result of the general sentiment in the markets, the fact that the trading week is impacted by the holidays, and this consolidation we are in. Watch out for a general movement in the markets, and once we find a direction, follow the trend and have a great time in the process of everything. It will be a great time, so have some fun and realize some gains this week.

Good luck trading this week, and let’s make the most out of the opportunities that are presented to us!

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HaiKhuu Daily Report 11/20/2023