HaiKhuu Daily Report 11/21/2023
Good morning, and happy Tuesday! Hope you are ready for strength in the markets because the movement yesterday is a confirmation of a direction. As I said before, this week is historically a bullish, lower volume & volatility week, with a significant amount of chop. We have FOMC minutes today, which really throws a wrench in the sentiment for the day, as well as $NVDA earnings after hours. If you are attempting to trade today, as always, look to take advantage of the opportunities that are presented to us, but make sure to tread lightly, as the movement we see in the morning will be preparations for minutes, and any movement afterward will be reactionary.
Expect to see slower general momentum earlier in the morning as a result of this, but just know that we are in a spot where the markets can continually move up in the short term.
Capitalize on the opportunities that are presented in these market conditions, and prepare for what is going to be a fun day for the markets.
Good luck trading today, and let’s have a great time!
The updated $SPY daily levels are as follows:
Conversion Line Support: $444.26
Baseline Support: $432.17
Strong Psychological Support: $450
Daily Cloud Support: $432.29
$SPY Daily Candles - [11/20/2023]
Thoughts & Comments from Yesterday, 11/20/2023
Yesterday was an absolutely beautiful day for the markets, with a significant amount of strength and bullish momentum across the board. Buying and holding almost anything throughout the day yesterday should have netted you a significant amount of both realized and unrealized gains. Many gains were missed out on, and many were realized. Congratulations to everyone who capitalized on the opportunities of yesterday and had a great time in the process.
We started the day off with $SPY looking relatively strong, opening at $450.58, slightly down from the previous close, but still looking exceptionally strong as we were able to retain that $450 support level from the previous week and had organizations like $MSFT continue to lead the charge, providing the markets with a significant amount of confidence at open. We moved up from the get-go, with $SPY pushing up throughout the entire morning, only slowing down during the lunchtime lull but still looking relatively strong with weak general momentum.
There was a bond auction at 1 pm EST, which caused an instant spike in the markets, pushing us to a new relative high, and continued the bullish momentum and trend throughout the rest of the trading day.
Markets only continued to trend up as $NVDA broke above $500 and remained strong in the process, as $SPY pushed into powerhour.
During powerhour, $SPY made the official high of the day, trading at $455.12, up significantly from both the previous close and open, but did come down at the end of the day.
We ended the day with $SPY trading at $454.26, up $3.47 for the day, or up roughly 0.77%, with an intraday bullish movement of +0.83%. It was an amazing day for the markets, with a significant amount of opportunity throughout the day. We watched as $MSFT and $NVDA moved up over 2%, and both $GM and $DIS did phenomenally for the people who have been holding that position with me. I hope you all were able to realize a significant amount of gains while attempting to trade yesterday and had an amazing time in the process.
Let’s see what today has in store for us, and let’s have some fun in the process of everything.
Heatmap - $SPY 11/20/2023
Thoughts & Comments for Today, 11/21/2023
Today will be another interesting time for the markets. At the time of writing this report, $SPY is down slightly, and I am assuming it will remain that way by the time you read this. $SPY is looking slightly weak but still at a point of overall strength. We are still in greed on the fear and greed index, which is a sign of general confidence, but it does not give me the assurance to want to attempt to allocate long into the markets at this point. Depending on how you want to capitalize on the markets will differ from person to person and the style of trading they want to attempt to do.
We have FOMC minutes coming out at 2 pm EST, which is going to be a major catalyst for market movement today. At open, I am expecting to see a relatively larger movement, but I am expecting to see momentum and volatility die down significantly throughout the morning. There will be opportunities to trade, but I am expecting to see a significant amount of both chop and confusion, which will make trading inconsistent and difficult to do with confidence. There might be bullish momentum in the process, but a lot of it comes down to people’s sentiment on the markets and how they feel about the minutes coming out. Once the minutes come out, it goes from a sentiment-based movement to a general reaction-based movement. I would be careful and cautious trading leading into the event, and I am significantly more confident in allocating into the markets once minutes are released and following the momentum then.
Practice safe risk management today, and please continue to consider adding hedges and some slight bearish allocations into the markets at this point, as we are at a point of strength in the markets, but there is so much uncertainty that it never hurts to have protection. $VIX is extremely low right now, trading below $14, which is a sign of confidence in the markets but also allows us an amazing opportunity to enter into hedges and general bearish allocations extremely cheaply. Obviously, I want the markets to continually push and display strength, but protecting your downside is going to be key to your longevity in the markets.
Just continue to navigate the markets with confidence, and do not do anything that ultimately would jeopardize your portfolio in these conditions.
Personally, I am still within the mindset of capitalizing on the momentum where I can via active trading, but I do not have any anticipation of entering and holding any higher-beta organizations at this point. I believe that many organizations are highly overpriced and are going to be extremely difficult to enter in long and hold with confidence, with upside potential. There obviously are still speculative organizations that you can enter into, but I am talking about the mega-caps like $NVDA, $TSLA, and $MSFT. I do not feel safe in these organizations, despite the constant bullish momentum they are providing right now, and as a result, I personally am not entering into any of these organizations at this time. If I am given an opportunity to trade these positions on an intraday basis, that is the only time I would feel comfortable enough to simply buy and hold throughout the day. I have started to take profit on some of the organizations that I have been holding for a long, and I anticipate continuing to exit my positions over the next couple of days, assuming that I am given an opportunity to realize a significant amount of gains. I am up roughly 20% on my $DIS position and have exited roughly 50% of the overall position at this point. My average on the remaining $DIS is roughly $80 a share, and do not plan on exiting this, but if market momentum shifts and $DIS starts to look bearish, I’ll exit the position and look for an opportunity to re-enter with time. I will look to add to my hedges on my positions and continue to grow a bearish allocation throughout the day.
Follow the market momentum, realize gains when you are confident doing so, and have a great time trading 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 great day for the systems. The base algorithm was able to outperform the long-term portfolio, providing us with confidence in its performance. We did not outperform $SPY by a sizable margin, but it was nice to see that on a day of solid market performance, the algorithm was able to outperform. We will have more quantifiable results towards the end of the month once we are able to get a larger picture of the performance of this live beta test.
The results of yesterday are as follows:
Baseline:
$SPY: +0.83%
Our Results:
Base Algorithm: +0.87%
Long Term Portfolio: +0.78%
Variable Market Neutral: +0.12%
Market Neutral: -0.03%
Variable Sector Neutral: -0.06%
Sector Neutral: -0.28%
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 11/21/2023
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 , $MSFT, $NVDA, $BA, $TSLA, $AAPL, $F, $GM, $DIS
Position Opportunities:
Trade the market momentum
Set stops in guaranteed profit
Limit your downside risk
Hedge your positions
Consider getting bearish exposure
LONG OPPORTUNITIES:
Long-Term Dividend - $GAIN / $JEPI
Long-Term Investment - $DIS / $DG / $KO
Long-Term Auto Sector - $F / $GM
Economic News for 11/21/2023
Existing Home Sales - 10:00 AM ET
FOMC Meeting Minutes - 2:00 PM ET
Notable Earnings for 11/21/2023
Pre-Market Earnings:
Kohl's Corp (KSS)
Medtronic (MDT)
Lowe's (LOW)
Best Buy (BBY)
Baidu (BIDU)
Abercombie and Fitch (ANF)
Analog Devices (ADI)
American Eagle (AEO)
Dick's Sporting Goods (DKS)
Burlington Stores (BURL)
After-Market Earnings:
Nvidia (NVDA)
Autodesk (ADSK)
HP Inc (HPQ)
DLocal Limited (DLO)
Jack in the Box (JACK)
Nordstrom (JWN)
Urban Outfitters (URBN)
Agora (API)
Wrap up
Overall, this should be a fun day for the markets, with a significant amount of momentum driven by FOMC minutes.
Minutes come out at 2 pm EST, so expect to see slower market momentum leading into the minutes that are driven by people’s sentiment, and once the minutes are released, we will see a shift where movement then becomes reactionary. Follow the momentum and be cautious if markets are extremely slow. Do not forget we have $NVDA earnings after hours today, which is going to be significant for the markets and will heavily impact the performance of the markets and many individual organizations. The expected move on $NVDA is roughly $35, so prepare accordingly for a movement in either direction.
Good luck trading today, and let’s make the most out of the opportunities presented to us!