HaiKhuu Daily Report 12/07/2022

Daily Report
Written By Allen Tran

Good morning and happy Wednesday! Hope you all are doing well and are actively watching the markets as this rejection of $400 is coming strong, and we are continuing to sell off in the meantime. There will be a bounceback and retracement soon, but it is for us to remain solvent until that happens. In the short term, please be smart, realize gains, and capitalize on the opportunities that present themselves. Looking and waiting to allocate into long-term positions as well as selling CSPs will be the best move in the short term to retain your capital! Be smart in these market conditions, and best of luck, as we are going to need it in the short term.

Thoughts & Comments from 12/06/2022

Yesterday was a tough time for the markets, with no great opportunities to go long. We opened up the day with $SPY trading at $399.50, right under that $400 resistance level. Markets moved up accordingly and made a high of day trading at $399.98, unfortunately not being able to break above $400. Once the markets rejected $400, we ended up selling off significantly for the rest of the day. We continued to make new lows the entire morning and watched as we hit the low of the day going into power hour. $SPY’s low of the day was $391.65.

After hitting that bottom, we had a short-term rally in power hour, recovering a small fraction of the losses that were incurred over the course of the day. $SPY ended the day trading at $393.83, down −5.76 (1.44%), with an intraday movement of down -1.4%. It was genuinely a tough day for the markets, with a substantial opportunity to lose a significant amount of money. Hopefully, the losses that were realized and unrealized yesterday were minimized as a result of wise selling and active hedging of your portfolio.

It was a great day for anyone bearish on the markets but an extremely difficult day for any of the bulls. We will move on from yesterday and hope that going into the end of the year, we see another shift in general momentum resulting in a beautiful Chrismas rally!

$SPY ONE MINUTE INTRADAY CHART 12/06

Thoughts & Comments for Today 12/07/2022

Today is going to be an interesting day for the markets as a result of the significant bearish momentum we are carrying over from the previous two days in the market. Please be extremely careful with the way the markets are moving at the moment. With $SPY down in this $390 level, we can continue to sell off, assuming we break this support level and find our way back into the $380 range on $SPY.

Thankfully, this selling should stop soon, leading into the end of the year. With this active selling-off happening, it will give us a great opportunity to start slowly allocating into long positions and setting up for the Christmas rally. If you are allocated in the short term, good luck and stay strong, you’ve missed an opportunity to exit your allocations at the top, but at least know that this selling will be exacerbated here in the next couple of days.

Just be smart while actively trading today. If you are trading, practice safe risk management and do not be overexposed at a time like this. Just sit back and continue to allocate into the markets slowly while watching out for strong opportunities to invest in strong equities with relative confidence.

When I ultimately do start allocating into long positions, I will let you all know, and we all can sit back and relax as we watch the markets rally into the end of the year.

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 tough day for the algorithms, with the overall bearish momentum in the markets. We, thankfully were able to mitigate the majority of the losses in the algorithm by creating a great system. Our bullish allocations, unfortunately, lost money but were able to outperform the markets by a large margin. The results are not the best from a day to day standpoint, but at least we beat out the markets by a large margin! So win for the algorithms!

If you want to read more in-depth about the performance of all of our algorithms, please check out Asher’s report.

The results of yesterday are as follows:

Baseline:

  • $SPY: -1.4%

Our Results:

  • Market Neutral: +0.58%

  • Sector Neutral: -0.0%

  • Variable Market Neutral: -0.08%

  • Variable Sector Neutral: -0.45%

  • Base Algorithm: -0.61%

  • Long-Term Portfolio: -0.89%

Today, at the point of writing this report, we are indecisive on which allocation style we would like. With the markets trending in our favor, I want us to allocate into the base algorithm with the intention that the markets move up accordingly, but in the case the markets do not move up in our favor by opening, we will allocate into FGI, our sector-neutral portfolio. I do have the intention of holding these allocations throughout the entire day, but it ultimately depends on the returns of the algorithm and how they are actively performing throughout the day

Please be on the lookout for when we ultimately cut our allocations for the day.

All positions will be disclosed prior to markets opening.

DISCLAIMER - 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. We cannot guarantee success. Take these at your own risk.

Generated entries for 12/07/2022

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 , $BABA, $TSLA , $META , $AAPL, $MSFT , $BA, $GOOG/L
Free Equity List:

  • Safe - $SPY

  • Risky - $META , $AMZN , $RBLX , $BABA

Position Opportunities:

  • Look to allocate into strong equities that you anticipate holding until the end of the year

  • Pick up some leaps in organizations you are bullish on over the span of a couple of years ($GOOG/L, $AMZN, $META)

  • Pick up broad market ETFs slowly ($SPY / $QQQ)

  • Sell short-dated CSPs with the intention of collecting premium on Friday

LONG OPPORTUNITIES:

  • Long-Term Dividend - $GAIN

  • Long-Term Safe Play - $BA

  • Long-Term Speculative Play - $META

  • Short-Term Speculative Play - $RBLX

Economic News for 12/07/2022

  • Productivity (SAAR) revision - 8:30 AM ET

  • Unit labor costs (SAAR) revision - 8:30 AM ET

  • Consumer credit (level change) - 3 PM ET

Notable Earnings for 12/07/2022

Pre-Market Earnings:

  • Academy Sports & Outdoors (ASO)

  • Campbell Soup (CPB)

  • Thor Industries (THO)

  • United Natural Foods (UNFI)

  • Vera Bradley (VRA)

  • John Wiley & Sons (WLYB)

  • The Lovesac Company (LOVE)

After-Market Earnings:

  • Gamestop Corp (GME)

  • The Descartes Systems Group (DSGX)

  • HashiCorp (HCP)

  • Greif (GEF)

  • Verint Systems (VRNT)

  • C3.ai (AI)

Wrap up

Overall, please just be safe and practice risk management in these current market conditions. Wait and start planning to hold long general allocations. Do not get greedy as that greed will kill in these market conditions. Realize gains when given an opportunity to do so and plan on going long and scale into your positions slowly.

Good luck trading today, and let’s make some bank!

Allen Tran
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