HaiKhuu Daily Trading Report

Good morning, and happy Friday! Hope you traders are all excited for the new month and are more excited to see what happens in the markets. This will be an interesting way to end the year, and hopefully, we will continue to see some strength in the markets. $SPY is slightly down at the time of writing this report but is still looking extremely strong compared to where we were last month. The one thing I would advise you to watch out for in the short term is the daily conversion line support. This support level is going to be key to watch as it will be our confirmation in the short term of a direction. Either we will watch as $SPY breaks out and moves up from this level with relative confidence or ultimately break down and bring some fear back into the markets.

We are still hovering in greed on the fear and greed index, and I would highly suggest considering preparing for possible downside risk and exposure in these market conditions. Look to take profit on equities that are up significantly, add slight hedges on your positions, and consider entering into some bearish allocations. Obviously continue to hold strong equity positions at this time, but consider taking some exposure off until there is a continued decisive move that we can capitalize on with confidence.

I am still of the mindset that $SPY needs to correct between 3-5% in the short term and will need to do this for both the longevity of this market momentum and confidence. I would love to see $SPY come back and fill the gap that we see on the daily, testing $440 and ripping back up in the process, but who knows what is about to happen.

Just continue to tread lightly on these market conditions, do what you can to maximize the opportunities available, and realize some gains.

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

The updated $SPY daily levels are as follows:
Conversion Line Support: $454.42
Baseline Support: $433.77
Strong Psychological Support: $450
Daily Cloud Support: $432.34

Thoughts & Comments from Yesterday, 11/30/2023

$SPY’s performance yesterday was genuinely extremely confusing, choppy, and extremely difficult to capitalize on. If you were able to realize gains actively trading yesterday, you should feel extremely accomplished because I can say with uncertain confidence that the majority of individuals who attempted to trade and realize gains yesterday realized losses extremely consistently and had a difficult time. Markets were extremely choppy for the large majority of the day, and made allocating with confidence almost non-existent outside trading trending organizations.

We started the day with $SPY opening at $455.47, up slightly from the previous close but nothing of any major confidence. The markets dropped at open and continued to chop with bearish momentum the entire morning, with no definitive movement, where anyone trading was presented with many quick opportunities to scalp, but made it extremely difficult to hold any positions during that time.

Thankfully, the choppy momentum ended towards the back half of the lunchtime lull as $SPY made the official low of the day, trading at $453.34. This downside is unfortunate, but realistically was less than a half percent drop from the top, which was something that ultimately did not cause many concerns.

The markets remained relatively neutral after the lunchtime lull ended and continued to hover at the low of the day for the first half of the afternoon, but was quickly met with some strong bullish momentum in the back half of the afternoon, which erased all of the bearish momentum that was generated as we recovered leading into powerhour.

Leading into powerhour, $SPY was trading at $455.10 and quickly dropped as the momentum in the markets at that time was heavily impacted by $TSLA and their cyber truck release event, and we watched as $SPY dropped approximately $1 to make a relative low right above $454, and then rally for the final half hour and continually make new highs of the day into close.

We ended the day with $SPY trading at $456.40, up $1.79 for the day, or up approximately 0.4%, with an intraday bullish movement of +0.2%. It was a great time with many opportunities to trade, but difficult to capitalize on the momentum with confidence. Again, if you were able to realize gains trading yesterday, congratulations, as many individuals had an extremely difficult time doing so.

Let’s see what happens today because this is a new month, and let’s see what happens this month to end this year!

Thoughts & Comments for Today, 12/01/2023

Today should be a fun day for the markets. We are starting to display signs of weakness in the markets, but there is still a significant amount of relative strength in the markets that we can all easily capitalize on. I expect to see a significant amount of chop and difficulties trading around all of the speakers we are seeing today. Jerome Powell is speaking at 11 AM EST, so expect to see some significant movement in the markets around that time.

I am extremely wary of these market conditions. If you have been holding equities over the previous month and are up nicely on those positions, you are in a great spot, but if you are attempting to allocate into the markets right now, I find it extremely difficult to attempt to allocate here, with confidence in the position. In my opinion, many organizations, if not most organizations, are overvalued, and it will be difficult to allocate to “safer” organizations that still have significant upside potential. There are not many places you can allocate long with a solid risk-to-reward ratio, so highly consider actively trading and scalping in these conditions.

By actively scalping and trading, you will be able to capitalize on the short-term market momentum but, at the same time, have no additional exposure in the markets, mostly at these elevated prices.

The one thing that I am going to continue to warn about in these conditions is the downside risk. Markets are still strong at the moment, but we are at a place where we can very easily fall, and once the dominos start to fall, things can come down extremely quickly. The one level that you should continue to watch out for in the short term is the daily conversion line support on $SPY. If that level starts to fail and we see that $SPY starts to come down as a result, will be the first sign of bearish momentum and weakness coming back into the markets. I would not be overly ambitious and anticipate this happening soon, but realistically, it can happen at any time, and we should all be prepared to allocate into the markets accordingly once this starts to happen.

This is going to be a very interesting day, with many opportunities to trade. Just be smart and safe in the process.

For my plans for the day, I am going to be looking for opportunities to allocate long into the markets and make game plans for different allocations that I am taking. Yesterday, I announced that I have entered into a quarter position in $QS with a stop set at $5.88, right below the daily support levels, as the organization is at an extremely interesting spot. We can easily see $QS break out of this daily cloud and capitalize on the opportunity, but at the same time, we are at a place where, if market conditions are not optimal, we can see it come down quickly. So I am only in a quarter position right now and will watch for a breakout in either direction before I take profit on the allocation or hit a pre-defined stop loss. Outside of watching these allocations, I may look to take on some risk in the markets and actively day trade equities & enter into 0-DTE option contracts. It will just be something that is interesting to do in the short term but is not going to generate a significant amount of realized gains as I am not attempting to put a significant amount of risk on the table.

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

HaiKhuu Proprietary Algorithm Report:

The algorithm did alright while trading yesterday. It underperformed slightly in comparison to the long-term portfolio, but both were able to beat $SPY by a nice margin. It is clear that the long-term portfolio carried the markets yesterday. I am very interested to see how the larger-scale data comes back from the algorithm's performance so we can get an accurate sentiment of the performance over the previous month. Be on the lookout for that; it should be coming out this weekend.

The results of yesterday are as follows:

Baseline:

$SPY: +0.2%

Our Results:

Long Term Portfolio: +0.39%
Base Algorithm: +0.37%
Variable Market Neutral: +0.35%
Variable Sector Neutral: +0.32%
Market Neutral: +0.27%
Sector Neutral: +0.2%

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, $RIVN, $QS, $F, $NVDA, $MSFT, $AAPL, $DIS

Position Opportunities:

Trade the market momentum
Take profit on positions
Set stops in a guaranteed profit
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
Speculative Re-Entry - $DIS / $RIVN

Economic News for 12/01/2023

ISM Manufacturing - 10:00 AM ET
Construction Spending - 10:00 AM ET
Fed’s Goolsbee Speaks - 10:00 AM ET
Fed Chair Jerome Powell Speaks - 11:00 AM ET
Fed Chair Jerome Powell and Fed Governor Lisa Cook talk to local leaders in Atlanta - 2:00 PM ET

Notable Earnings for 12/01/2023

Pre-Market Earnings:

Bank of Montreal (BMO)
Genesco (GCO)

Wrap up

This should be a fun day in the markets, providing us with many opportunities to realize gains. It may be difficult to capitalize on choppy conditions, so tread lightly and practice safe risk management. I highly recommend you start considering taking positions off the table and look for new opportunities that are available in the markets, as many organizations that were up heavily over the previous month are starting to come down. Limit that downside risk and take on some solid exposure.

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

Join Our FREE Trading Community!

HaiKhuu Daily Report 12/01/2023