HaiKhuu Daily Trading Report

Good morning, and happy Thursday! Hope you traders are all ready for today because this is gonna be another interesting day for the markets. $SPY is relatively neutral at this point, but we are continuing to see relative weakness in the markets. It is a matter of time until we see any sort of general larger movement in the markets, and today might possibly be the day. We are back below the daily conversion line support, signaling relative weakness in the markets, but at the same time, we are at a place of relative confidence where the markets can easily bounce back above this mentioned support level and continue to chop indefinitely until there is a decisive move.

I will continue to advise caution in these market conditions but look to follow the momentum and take advantage of the opportunities that are presented to us. This market momentum is going to be difficult to navigate, but it will continue to provide us with amazing opportunities to actively scalp and trade and realize some gains. So make some smart allocations, take advantage of what you can, and have a great time in the process.

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

The updated $SPY daily levels are as follows:
Conversion Line Support/Resistance: $456.50
Baseline Support: $439.15
Strong Psychological Support: $450
Daily Cloud Support: $431.44

Thoughts & Comments from Yesterday, 12/07/2023

Yesterday was an extremely tough time for the markets. We were looking strong going into open, but there was a significant amount of bearish momentum throughout the entire day that made trading extremely difficult to do with confidence unless you were overly bearish going into open, and were able to open a bearish allocation and capitalize on the weakness in the markets.

$SPY opened the day trading at $458.76 and quickly moved up to make the official high of the day trading at $458.83. It was nice seeing $SPY look extremely strong during the pre-market session, but despite this, we did see that there was a significant amount of weakness in the markets as we continually dropped throughout the entire day.

Within the first hour, there was absolutely no bullish momentum or opportunity in the markets, as everything continually dropped across the board, making it difficult to allocate with confidence.

This momentum did slow down into the back half of the morning as $SPY remained relatively neutral around $457, but it did pick up during the lunchtime lull, where the markets officially went red for the day and continued with some weak bearish momentum into the afternoon.

The markets continued to remain neutral, hovering at the daily conversion line resistance for the large majority of the afternoon, until powerhour, and that is where we started to see some significant movement into close. $SPY was trading around $456 leading into powerhour and continually dropped, making new lows all the way into close, where the official low of the day was $SPY $454.32, and we ended the day with $SPY trading at $454.76. $SPY was down $1.84 for the entire day, down 0.4%, with an intraday bearish movement of down -0.89%.

It was an extremely difficult day to trade, but there were many great opportunities across the board to actively scalp and realize a significant amount of gains. I know many people who have been in $RIVN, $QS, and many other organizations were able to realize a significant amount of gains exiting their positions yesterday, so if you were one of those people or were able to profit and realize some gains, congratulations as it was extremely difficult to trade yesterday!

Let’s see what the markets do today and have some fun in the process!

Thoughts & Comments for Today, 12/07/2023

Today will be an extremely interesting time for the markets. With the way $SPY sits, we are up slightly from the previous close but are still under the daily conversion line, which will cause a significant amount of confusion and difficulties in attempting to trade with confidence. We are still in greed on the fear and greed index, and there is still relative strength, but now it is a matter of simply following the market momentum and treading lightly on any movement we see.

The markets have been extremely stagnant over the previous couple of weeks, making trading extremely difficult, but thankfully, it at least is providing us with consistenty opportunities to scalp in either direction. As I have been saying, I would not be overly bullish or bearish until there is a confirmation of a direction, but look for the trades that at present themselves.

I think that, realistically, we are going to see a very large movement in the markets in the near future, but it is just a matter of direction, sentiment, and news. Assuming everything is continuing strong, I do believe there is a highly high likelihood of the markets hitting a new all-time high within the next six months, but at the same time, I do believe that between then and now, there will be times of bearish opportunity and times of overly bullish confusion.

Markets are at a point of strength right now, leading into the end of the year, and this is starting to give me early 2021 vibes. We are seeing more retail traders coming into the markets now and seeing more volume being traded, which is a great sign for the markets in general, but it also gives me confidence in knowing that we can realistically continue to move up before we see a significant movement down.

Despite having that sentiment, I will say that realistically, I do believe, in the near future, we will see roughly a 3-5% drop in the markets before we see another significant movement up. I may be biased when I say that because I want to be able to allocate deeper into the markets at a better price, but I am expecting to see realistically before us rallying again.

The level I have been warning you about and that you should keep on your radar is the daily conversion line support. This is the first level of major support & resistance that we can gauge the markets with, and it is going to be the first sign of confirmation towards the downside if we are able to retain this resistance and continue to move down.

In the case that $SPY does break back above this level, it is a sign of bullish confidence, but it will still be displaying weakness in the general sentiment in the markets. If there were significantly more strength, then we would have been able to retain this level with confidence, and not break below it ever.

Just continue to be careful and practice safe risk management. I would personally advise you to consider taking an allocation off the table and looking to limit your exposure at these levels in the markets, but there are going to be many great opportunities to trade and realize gains. Continue to trade in these market conditions and look for scalps because people who are actively trading will have the most consistent returns and allow you the flexibility to limit your downside exposure.

For my personal allocations today, one organization I am eyeing right now is $AI. This organization has done phenomenally over the previous year as a result of the $AI hype that has been generated, and I believe there is a significant upside potential with the organization in the grand scheme of things. They had earnings last night, and as a result of that, have dropped approximately 10%. With this opportunity that is presented to us for an entry, I will be looking primarily to sell premium against the position and get into some CSPs. I will be considering either the 1-DTE contracts that are slightly OTM, and I will look at the 8-DTE monthly expirations, ITM, and looking to collect more premium from that position. On top of this, I will also be looking to get into some $GME CSPs depending on the amount of premium I am able to collect going highly OTM. I would want to sell these puts below the 52-week low for the closest expiration and ideally be able to close out that position as soon as possible and realize as much as I can without having too much general exposure in the play. I do not anticipate scalping too much in these conditions, but if the right opportunity presents itself, I am not going to be upset about allocating where I see a play. But it does seem like today is going to be one of those days that I do look more towards selling premium on what I can, and watching this market momentum unfold.

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. Nothing to brag about. Losses were generated, but it outperformed against both the long-term portfolio and $SPY. It’s nice to see that it beat the markets by a slight margin which is a win, but is nothing that should generate significant confidence or excitement in the short term. C’est la vie.

The results of yesterday are as follows:

Baseline:

$SPY: -0.88%

Our Results:

Market Neutral: +0.2%
Sector Neutral: -0.14%
Variable Market Neutral: -0.27%
Variable Sector Neutral: -0.43%
Base Algorithm: -0.7%
Long Term Portfolio: -0.76%

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, $MSFT, $NVDA, $BA, $QS, $AI*

Position Opportunities:

Trade the market momentum
Take profit on positions
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 12/07/2023

Initial Jobless Claims - 8:30 AM ET
Wholesale Inventories - 10:00 AM ET
Consumer Credit - 3:00 PM ET

Notable Earnings for 12/07/2023

Pre-Market Earnings:

Dollar General (DG)
Ciena Corp (CIEN)
Liquidity Services (LQDT)
SecureWorks (SCWX)
GMS (GMS)
Methode Electronics (MEI)

After-Market Earnings:

Broadcom (AVGO)
Lululemon Athletica (LULU)
DocuSign (DOCU)
Smartsheet (SMAR)
HashiCorp (HCP)
Smith & Wesson (SWBI)
Vail Resorts (MTN)
Planet Labs (PL)
Cooper Companies (COO)

Wrap up

This should be an interesting day for the markets. Make sure to practice safe risk management today while the markets are showing relative weakness. $SPY has broken below the daily conversion line support and is showing weakness. This, again, might be another fake out, but in the case that it is not, protect your bottom line, make smart allocations, and prepare accordingly because this is going to be a difficult time to trade with confidence.

Prepare for the worst, but let’s all hope for the best.

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

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HaiKhuu Daily Report 12/07/2023