HaiKhuu Daily Report 12/15/2023

Good morning, and happy Friday! I hope you all are prepared for increased volatility and momentum in the markets today and are excited about the weekend!

Today is a monthly expiration date, and more importantly, it is a triple witching, so prepare accordingly.

Expect to see a lot of volatility, momentum, and volume in the markets as a result of expirations today, and prepare for what is going to be an extremely fun, confusing, and choppy time in the markets.

Markets are down slightly at the time of writing this report, but in reality, this slight movement down is irrelevant, but it does not bring comfort or confidence as a result.

Please be careful and cautious while attempting to trade today, but look to make smart allocations, practice safe risk management, and prepare for what is going to be an extremely choppy and inconsistent time today. There will be many opportunities to trade, but there will be many more opportunities to get burnt.

Let’s end this week strong and have a great time in the process. Good luck trading today!

The updated $SPY daily levels are as follows:
Conversion Line Support: $462.02
Baseline Support: $453.57
Strong Psychological Support: $450
Daily Cloud Support: $431.44

Thoughts & Comments from Yesterday, 12/14/2023

Yesterday was an extremely confusing time for the overall markets, with a significant amount of opportunity, chop, and confusion. $SPY was up overall on a day-to-day basis but was down on an intraday basis. Trading was extremely difficult, but if you timed out allocations properly, you would have been taking on a significant amount of risk, but you would have been rewarded nicely, assuming you got a little bit lucky. We did make a new 52-week high on $SPY and had an amazing time in the process.

We started the day with $SPY opening up extremely green, opening at $472.50, up $2 from the previous close, and displayed strength throughout the entire morning. The markets shifted around, and we watched as $SPY quickly pushed up and made new 52-week highs within the first half hour of the day, feeling amazing and providing traders with a great opportunity to realize some gains early in the morning. We watched as $F, an organization we have been watching for a while, moved up significantly after opening, making relative highs and ripping for $F standards.

The new 52-week high on $SPY was hit within the first half hour of the day, trading at $473.73, and is continuing to inch closer and closer to new all-time highs.

Market momentum was extremely strong, but we did see a shift in market momentum and sentiment early as economic news came out at 10 AM EST, causing markets to start to sell off, but we still retained relative strength as $SPY continued to trade at a significant premium.

During the lunchtime lull, there was nothing exciting that happened in the markets. We watched as market momentum was choppy and inconsistent while not moving at all, making attempting to trade at that time extremely difficult. Thankfully, after the lull ended, we watched as the markets recovered and buying volume came back extremely quickly. $SPY went on to rally back and test new 52-week highs again but was not able to create a new high, and after rejecting the high, it sold off extremely quickly into the afternoon.

Within an hour, $SPY went from trading above $473 to making the official low of the day trading at $469.27, displaying significant weakness, breaking below a weak psychological support, and heavily impacting many traders in the process. Many traders got faked out attempting to buy the dip, and many traders were fearful of attempting to enter below $470, myself included, but this was the best opportunity to load up throughout the entire day.

In the back half of the afternoon, markets moved up extremely nicely after stopping many traders out, as $SPY quickly bounced back above $470 and provided traders with almost a test book stop out and rally.

The majority of the losses that were incurred during the selling were quickly recovered as $SPY did push into close despite showing relative weakness.

We ended the day with a slight pop in the markets, with $SPY officially ending the day trading at $472.01, up $1.51 for the day, or up approximately 0.32%, with an intraday bearish movement of -0.1%. This was an extremely confusing time for the markets with many opportunities to trade, and we watched as many organizations within the technology sector get shot, as $MSFT was down 2.25% and $ADBE ended the day down over 6%.

Hopefully, you were able to capitalize on the opportunities that were available to trade yesterday, as market conditions were difficult to navigate, but it was amazing assuming you were in the right positions. $F was up almost 7.5%. It was an amazing day for the markets despite the difficulties, but overall, assuming you were allocated properly, you had many great opportunities to realize a significant amount of gains.

Today should be an interesting time for the markets with confusing sentiment, so let’s see what happens, and make the most out of it!

Thoughts & Comments for Today, 12/15/2023

As I said before, today is going to be an extremely interesting time for the markets. We have triple witching, which is going to impact the consistency in the markets, and many traders are going to realize a significant amount of gains. But at the same time, there will be significantly more traders who are going to have an extremely difficult time trading today and are going to realize a significant amount of losses.

The markets have been acting extremely irrationally over the previous month, but this is the time for you to sit down, be diligent, and allocate accordingly. Do not take on dumb risks in the markets right now, and do not get emotional over your plays. When the markets were ripping from the bottom, that was the perfect time to shotgun-allocate into the markets because it was extremely difficult to lose while everything was pushing, but now is the time to take a step back and become a sniper.

These conditions will have many great opportunities and potential, but at these current levels, this is what we call a “stock pickers market.”

There is a lot of potential in these market conditions, but many organizations are heavily overvalued. I am not comfortable or confident in blindly entering into organizations because market conditions are primed to go up, but this is the time to find fundamentally solid organizations that are undervalued if you are attempting to allocate long into the markets.

If you are attempting to trade right now, scalping and day trading with tight stops will be extremely difficult today but will provide you with the most safety in comparison to being set on being bullish on certain specific organizations. It is a lot easier to be confident that an organization is setting up from a technical standpoint than attempting to be bullish on an organization like $NVDA at these highs.

Just please continue to be careful, cautious and diligent in these market conditions. Lots of traders, as I said before, are going to have an extremely difficult time navigating the market conditions today, and many traders are going to get emotional in these conditions.

Do not think with emotions. Use logic and technical analysis to capitalize on these market conditions confidently.

For my personal allocations today, I am not comfortable allocating heavily into the markets and will most likely not attempt to trade within the first half hour of the day as a result of the general confusion in the markets. $SPY is looking weak during the pre-market session as we are coming down to the $470 support level, but there is still a significant amount of strength and potential that will give traders opportunities to realize gains. This confusion here does not provide me with the confidence to force any allocations in the short term, and I will wait until there is at least a confirmation of a direction in the markets prior to allocating into either direction. Any trades that I enter, I will be looking to follow the momentum in the markets and will be looking to capitalize on a confirmation of a trend reversal.

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

HaiKhuu Proprietary Algorithm Report:

Yesterday was another amazing day for the algorithm. I genuinely have zero complaints and am extremely happy to see a significant outperformance of the algorithm in comparison to both $SPY and the long-term portfolio it was built on. This has been one of the best showstopping days we’ve had on the algorithm, and I am extremely happy to see these results.

The results of yesterday are as follows:

Baseline:

$SPY: -0.10%

Our Results:

Market Neutral: +0.99%
Variable Market Neutral: +0.96%
Base Algorithm: +0.87%
Variable Sector Neutral: +0.34%
Sector Neutral: +0.26%
Long Term Portfolio: -0.04%

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, $GIS, $RIVN, $F, $KO, $AI, $MSFT, $TLSA, $NVDA

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 12/15/2023

Empire State Manufacturing Survey - 8:30 AM ET
Industrial Production - 9:15 AM ET
Capacity Utilization - 9:15 AM ET
S&P Services/Manufacturing/Composite PMI Flash - 9:45 AM ET

Notable Earnings for 12/15/2023

Pre-Market Earnings:

Darden Restaurants (DRI)

Wrap up

This is going to be an extremely fun day for the markets, with many great opportunities to trade and realize some gains. Be careful, as this is a triple witching, but look to capitalize on the opportunities that are presented to us as a result. Just make sure to practice safe risk management, watch out for a possible breakdown in the markets, and do not get emotional with your trades. Use logic, realize some gains, and have a great time in the process.

Let’s see what the markets have in store for us, and let’s finish this week strong.

Good luck trading today, and I hope you all have an amazing weekend!

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