HaiKhuu Daily Report 12/05/2023

Good morning, and happy Tuesday! Markets are down slightly at the time of writing this report, and we are displaying general weakness in the markets as $SPY has broken below the daily conversion line support. This is the time to consider your game plan in the near future and start allocating accordingly. There are going to be many opportunities to trade and many more opportunities to get burnt. Consider the opportunities that are available and be realistic with your sentiment.

Bearish allocations should do well in the case that markets continue to come down, but there will be opportunities to scalp and day trade toward the upside.

Be weary of being overly bearish right now because this can easily be a fakeout towards the downside before the markets come up, but I’ll go more in-depth about my general sentiment in the markets later on in this report.

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

The updated $SPY daily levels are as follows:
Conversion Line Support/Resistance: $456.50
Baseline Support: $435.94
Strong Psychological Support: $450
Daily Cloud Support: $431.44

$SPY Daily Candles - Below Daily Support [12/04/2023]

Thoughts & Comments from Yesterday, 12/04/2023

Yesterday was an interesting day for the markets. We were looking extremely bearish going into open, but there were opportunities to capitalize in both directions in the markets. But it was a matter of timing your allocation properly and realizing gains in the process. Many traders had difficulties navigating yesterday, but it was a lot of fun trading and taking advantage of the market conditions.

We started the day with $SPY opening bloody red, down at $455.60, significantly lower than the previous close of $459.10 from Friday. Markets remained relatively neutral for the first hour of the day with no significant movement but provided us with opportunities to capitalize on opportunities to trade and enter into equities throughout the morning.

After the initial hype was over, we watched as $SPY dropped for the rest of the morning, leading into the lunchtime lull, making the official low of the day trading at $454.36. This was an unfortunate drop in the markets, but it at least provided us with an opportunity to load up on solid equities at a point of confusion in the markets.

$SPY did thankfully bounce back up after the lunchtime lull as buyers started to come back into the markets, and volume picked up, as all of the losses that were incurred during that initial sell-off came right back. But unfortunately after this happened, $SPY continued to remain relatively neutral throughout the rest of the trading day.

There was no good momentum to capitalize on in the backhalf of the afternoon, but many opportunities to actively scalp and trade relatively smaller movements consistently. It was fun attempting to trade at that time, but difficult to find any sort of significant movement to capitalize on.

We ended the day with $SPY trading at $456.69, down $2.41 for the day, or down approximately 0.5%, with an intraday bullish movement of +0.24%. It was a difficult day to trade, but there were many great opportunities you could have capitalized on with confidence. Hopefully, you all were able to realize a significant amount of gains while trading yesterday and had a great time in the process.

Let’s see what the markets have prepared for us today and let’s take advantage of this momentum!

Heatmap - $SPY 12/04/2023

Thoughts & Comments for Today, 12/05/2023

Today should be a more interesting day for the markets. With the way that the markets are sitting right now, there is a display of short-term weakness in a market of strength. This can be the first opportunity we see some bearish sentiment come into play in over a month, or this could be a quick fakeout to hurt some of the individuals who are bearish.

With the way the markets are setting up, I would highly recommend you consider getting into some bearish allocations but continuing to navigate the markets fluidly, but tread extremely lightly as we are below the daily conversion line support. This is not the time to be overly bullish and the time to start considering hedging open allocations and preparing for what should be an extremely interesting time for the markets.

In the case that the markets do break back up today and retain the daily conversion line, there is still the underlying weakness in the markets but continued relative strength, which is what we want in the short term. Ideally, we do see the markets come down for us to capitalize on some short-term bearish momentum, though, to provide strength in the grand scheme of things. As much as I want to be hyper-bullish on these market conditions, the issue is we cannot continue to move up with confidence without some slight pullbacks. We’ve not pulled back, making this movement relatively unsustainable to be hyper-bullish in the process.

It would be great to see a quick 3-5% pull back on $SPY, for us to capitalize on the short-term bearish conditions, for us to be able to allocate into strong equities on a dip, to see a rally into the end of the year. If it were up to me, that would be my perfect scenario. We realize gains on the way down, load up at the bottom, and ride the momentum back up with confidence.

This obviously is a crystal-ball prediction, though, and is not a signal to enter or exit any positions, but is something that you should consider in these conditions. Just continue to be fluid with your positions, continually adjust to the market conditions, and realize gains where possible.

I know I have been saying this for the previous couple of days, but consider taking profits on some of your equities at these levels, as the markets have moved up extremely nicely over the previous month, and the markets will be looking to take back those gains, so realize gains while you can, and limit your downside exposure.

For my allocations today, I am going to continue to adjust my portfolio where I personally see fit. I may attempt to actively scalp if I see an opportunity and may look to play some 0-DTE puts around open, but it will be extremely difficult managing everything with confidence with the way the markets are looking. I do anticipate exiting some more positions in my portfolio with the anticipation of reallocating when given an opportunity. I have already exited out of my $RIVN equity yesterday and half of my $QS position and will be looking to adjust more of my portfolio soon and taking profits where I see an opportunity. I’m not overly bullish or bearish right now, but if I had to pick a direction that I anticipate the markets going, is realistically down unless we are able to break back above the daily conversion line.

Continue to tread lightly on these market conditions and look for opportunities to take advantage of the market momentum.

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

HaiKhuu Proprietary Algorithm Report:

Yesterday was an alright day for the algorithm. Everything was relatively neutral in comparison to the performance of $SPY. There was a slight outperformance of the algorithm in comparison to $SPY, but nothing of a large enough margin to be overly excited over. It’s good to see consistent performance. It will be interesting to see how this performs over the next month.

The results of yesterday are as follows:

Baseline:

• $SPY: +0.24%

Our Results:

• Base Algorithm: +0.3%

• Variable Market Neutral: +0.27%

• Market Neutral: +0.27%

• Variable Sector Neutral: +0.25%

• Long Term Portfolio: +0.24%

• 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.

Algorithmic Alerts for 12/05/2023

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

Position Opportunities:

• Trade the market momentum

• Take profits on positions you’re up on

• Limit your downside risk

• Hedge your positions

• Get some 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 12/05/2023

• ISM Services - 10:00 AM ET

• Job Openings - 10:00 AM ET

Notable Earnings for 12/05/2023

Pre-Market Earnings:

• NIO (NIO)

• AutoZone (AZO)

• J.M. Smucker (SJM)

• Americas CarMart (CRMT)

• Ferguson plc (FERG)

• Signet Jewelers (SIG)

• Designer Brands (DBI)

• ZeroFox (ZFOX)

• Lands' End (LE)

After-Market Earnings:

• MongoDB (MDB)

• SentinelOne (S)

• Toll Brothers (TOL)

• Asana (ASAN)

• Dave & Buster's (PLAY)

• AeroVironment (AVAV)

• HealthEquity (HQY)

• Stitch Fix (SFIX)

• Skillsoft (SKIL)

Wrap up

This should be an interesting time with the markets coming down into open. Look to get some bearish exposure before it’s too late, but do not be overly bearish as these market conditions are relatively weaker at the moment, but we can see an extremely quick shift in market momentum. Realize gains, make some smart allocations and prepare accordingly for what will be a difficult time to trade with confidence!

Good luck trading today, and let’s have some fun!