HaiKhuu Daily Trading Report

Good morning, and happy Monday! Hope you traders all had an amazing weekend and are feeling great. Markets are down when writing this report, but as I have said before, we are still displaying strength compared to last month. Markets do need to come down, and we need to see signs of weakness to continue to move up, but realistically, we can continue to move up irrationally before we start to come down. $SPY has made a new 52-week high and can realistically continue to do that until we show signs of reversal.

Watch out for the daily conversion line support on $SPY. Once we break under that level and hold under it, will be the point that I personally am the most comfortable and confident in going short equities, but until then, we are playing in a state of confusion.

Consider taking profits on positions you are up nicely on
Consider hedging your positions
Consider getting bearish allocations into the markets at this time.

This is not a signal to obviously buy or sell any equities, but this is a reminder to remain rational while the markets are acting irrational because the individuals that are acting irrational while the markets are irrational will do phenomenally until they don’t, and they will be the ones who are impacted the most.

Be smart, be safe, and practice safe risk management at this time.

Good luck trading this week, and let’s see what the markets have in store for us!

The updated $SPY daily levels are as follows:
Conversion Line Support: $455.80
Baseline Support: $434.43
Strong Psychological Support: $450
Daily Cloud Support: $432.64

Thoughts & Comments from Last Week

Last week was an interesting time for the markets. We started to see larger movements as volume and volatility returned to the markets, and $SPY hit a new 52-week high. In hindsight, there were many opportunities to trade, but many were difficult to spot in real-time. Hopefully, you all were able to capitalize on the opportunities that were available, as there were many great trades last week.

Monday the 27th was an interesting way to start the week off. There was relatively minimal intraday bearish momentum, but it started the week off relatively slow and slightly bearish, with $SPY opening the day trading at $454.65 and ending the day at $454.48. It was difficult navigating the market conditions, but provided us with an opportunity to actively scalp and trade to start the week off.

Tuesday was a slightly better day for the markets as $SPY. There was slightly bullish momentum in the markets as $SPY opened the day trading at $454.08 and made the official high of the day trading at $456.27. $SPY did come back down into close, ending the day trading at $454.93, but remained strong in the process, and maintaining its level above the daily conversion line support.

Wednesday was a confusing day for the markets. $SPY displayed a significant amount of strength in the markets as $SPY opened the day up significantly from the previous close, opening at $457.15, but we all watched as $SPY came down throughout the entire day, ending the day trading at $454.61. This was the most bearish momentum we saw all week, but we should be thankful as $SPY continued to retain its placement above the daily conversion line support.

Thursday was just an alright time for the markets, there was a lot of confusion in regards to the overall sentiment as the markets were extremely choppy, and made it difficult to trade with confidence. $SPY opened the day trading at $455.48, up ever so slightly from the previous close, and we watched as $SPY made the official low of the day trading at $453.31, under the daily conversion line support, stopping a lot of traders out, before rallying into close and ending the day trading at $456.40. This was the most difficult day to trade with confidence but provided us with the most opportunities throughout the entire week.

Friday was an amazing day for the markets. We started the day with $SPY opening slightly red, trading at $455.73, down from the previous close, but looking relatively strong. The market momentum was slow around open but displayed a significant amount of confidence throughout the entire morning, and continued the bullish momentum throughout the entire trading day. $SPY pushed through the lunchtime lull, and the momentum lasted as volume came back into the markets, continuing the strength. $SPY went on to make a new 52-week high on Friday, trading at $459.64 and was beautiful in the process. Markets did come down slightly into close but continued to display strength in the process. We ended the week with $SPY trading at $459.10, up $2.70 for the day on Friday, or up approximately 0.6%, with the overall week ending with $SPY being up $4.40 or roughly 1%.

As I said before, it was an amazing week for the markets, with many opportunities to trade. It may have been difficult spotting those positions in real-time, but we really saw some great opportunities appear in the markets. Many of the trades that I was able to call out performed beautifully, with a great exit on $GM and an amazing entry on both $RIVN and $QS. Hopefully, you all were able to allocate when we announced those positions because it would have led to what was realistically some amazing returns in an extremely short period of time.

Let’s see what the markets have prepared for us this week and navigate it accordingly!

Thoughts & Comments for Today, 12/04/2023

Today is going to be an interesting time for the markets. $SPY has displayed weakness during the pre-market session, but as I have said before, we are still looking relatively strong in the markets. We might see a slight pullback in market momentum, but assuming that sentiment remains neutral where it is, we still have a great possibility that the markets will continue to move up with strength.

Continue to watch out for the conversion line support, and do not be overly bullish or bearish in these market conditions. This is the time to start preparing for your plans and think about how you want to navigate the markets in the future. Market conditions are strong at the moment, but we are not continuing to display strength in the same ways. I am expecting to see some weakness in the markets soon, so I would rather proactively exit positions in the markets, limit general exposure while I am up nicely, and start entering into both hedges and bearish allocations now than attempt to allocate into hedges and bearish allocations once market conditions shift.

I am not saying you should be overly bearish, but it never hurts to get bearish exposure and hedges now. Because in the worst-case scenario, you will ultimately sit there and realize losses with those hedges in the short term, but still be able to capitalize on the bullish momentum in the markets. But in the scenario where the hedges work out as expected, it would be nice to have that bearish exposure assist you towards the downside, as market conditions weaken and your losses are subsidized nicely with your bearish exposure. Losses will be minimized, and you will be able to continue to tread nicely regardless of market conditions.

This is still not the time that I would advise allocating into many of these higher beta tech plays that many believe are overvalued right now, like $NVDA, $TSLA, or $MSFT, but if you are attempting to go long, look to enter into organizations that are undervalued, that provide a significant amount of upside potential in real-time.

If you are attempting to allocate into the markets right now, in my honest opinion, this is the best time to trade actively. If you have cash on hand that is not utilized 100%, I am expecting to see market conditions weaken with time but still provide us with opportunities to capitalize on short-term momentum. With active trading, you will not have the same exposure risk that many individuals will see while holding equities.

Look to actively day trade and scalp in these market conditions, as you will be able to consistently get solid allocations in the markets at this time and capitalize on momentum easily. Obviously, practice safe risk management and prepare for choppy conditions. But trading now is one of the safest ways to get exposure to the markets.

For my personal allocations today, I will be looking to actively trade equities that I have been watching and may look to scalp organizations like $DIS. I am extremely happy with the performance of both $QS and $RIVN over the previous couple of trading days and will look to adjust those allocations with time. I plan on selling ITM CCs on both $RIVN and $QS. It is just a matter of how much premium is generated at these levels. If I am not able to get a significant amount of premium, I will look to sell or exit a portion or a majority of both of these positions in the near future.

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 amazing week for the algorithm. There was a significant outperformance from $PANW that led the returns we were able to generate. I am extremely happy to see this but understand the placement of the markets at this time. We outperformed the weighted S&P500, but the equal-weighted S&P allocations outperformed both $SPY and all of our portfolios. Regardless, the performance last week was great; we are happy with these results.

The results of yesterday are as follows:

Baseline:

$SPY: +0.52%

Our Results:

Base Algorithm: +1.41%
Variable Market Neutral: +1.26%
Long Term Portfolio: +1.13%
Market Neutral: +0.99%
Variable Sector Neutral: +0.79%
Sector Neutral: +0.1%

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

Position Opportunities:

Trade the market momentum
Set stops in a guaranteed profit
Limit your downside risk
Hedge your positions
Consider getting bearish exposure

LONG OPPORTUNITIES:

Long-Term Dividend - $GAIN / $JEPI
Long-Term Investment - $KO
Long-Term Auto Sector - $F
Speculative Re-Entry - $DIS / $RIVN

Economic News for 12/04/2023

Factory Orders - 10:00 AM ET
Durable Goods - 10:00 AM ET

Notable Earnings for 12/04/2023

Pre-Market Earnings:

Science Applications International (SAIC)
Fusion Fuel Green (HTOO)

After-Market Earnings:

GitLab (GTLB)
JOANN Inc (JOAN)
Culp (CULP)
IDT Corp (IDT)

Wrap up

This should be a fun time for the markets today. Let’s see where the momentum takes us and make the most out of the opportunities that are presented. Practice safe risk management, and let’s do what we can to maximize our potential for profit. Be smart, be safe, and let’s realize as many gains as possible while there is strength in the markets.

Good luck trading today, and let’s see what the markets have in store for us this week!

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HaiKhuu Daily Report 12/04/2023