HaiKhuu Daily Report 12/16/2022
Good morning and happy Friday morning! Markets are down and looking weak at the moment. Now is the time to take advantage of the opportunities presented to you, and let’s have some fun in the process. I would recommend that, despite this rough pre-market session, I would still capitalize on the opportunities that are present to make money in these times. Look for opportunities to go long, and sell some 0DTE Cash Secured Puts right at open.
With today being triple witching, it will be extremely volatile and difficult to actively trade, but there will be many opportunities to trade and realize gains. The majority of aggressive traders will, unfortunately, lose money trading today. Be smart with your allocations, be passive with your positions, and only strike when given a perfect opportunity to do so.
Thoughts & Comments from 12/15/2022
Yesterday was a tough day for the markets, with selling happening almost instantaneously from open. $SPY opened the day trading at $394.39 and made a high at $395.25 before tumbling down. Everything across the board sold off continuously throughout the day and presented many opportunities to get burnt in an attempt to go long, and a phenomenal morning for anyone who attempted to short the market or get any general bearish allocations.
$SPY went on to drop over 1.5% from open and continued to show signs of continued bearish momentum while actively testing $388. A half-hour before power hour, $SPY quickly picked up and tested VWAP before ultimately ending the day with a slight sell-off. $SPY ended the day trading at $389.63, down −$9.77 (2.45%) with an intraday movement of -1.18%. It was unfortunate that $SPY was not able to close above the $390 support level. That would have brought more confidence into the markets if we did, but at least the day is over, and we can recover & move on with ease.
It was a tough day for the markets, but C’est la vie. The markets will continue to move on and do their thing. Hopefully, you seized any opportunities that were available to trade and capitalized on them. Bearish trades yesterday were a great opportunity with lots of people enjoying their puts, and we will see what happens today in the markets.
$SPY ONE MINUTE INTRADAY CHART 12/15
Thoughts & Comments for Today 12/16/2022
Going into opening today, the markets are looking extremely rough right now. There is a significant bearish overtone in the markets without many opportunities for optimism at this time. Despite this bearish sentiment, markets are presenting us with a great opportunity to capitalize on this momentum and realize some gains in the process. Expect significant momentum to pick up during the final hour of the trading day and will present us with opportunities to trade and realize some gains.
I will recommend you take these market conditions and look to make one of two allocations for the day. The first would be to capitalize on the lowered prices of equity in the markets and sell 0-DTE Cash Secured Puts right at open, and the other recommendation is to look out for opportunities to day trade and realize a significant amount of gains in a short time. $SPY max pain in $392, but realistically that is not going to happen by market close.
There will be opportunities to make bullish trades and allocations, but please be careful and make sure to practice safe risk management. If you are able to capitalize on the opportunities that are available.
The strategy that I personally recommend for today is to sell a significant amount of 0-DTE CSPs today with the intention of cutting those allocations early in the day to maximize the amount of realized gains on the capital you are not fully utilizing. A couple of organizations I would recommend you look to sell CSPs on are RBLX, $TSLA, and $GOOGL.
$GOOGL is the safest but will provide you with prospectively less premium, $RBLX would be risky but provide a great covered return, and $TSLA will provide you with the highest return but be extremely risky in the process.
A couple of strikes I will be looking out for specifically are $25 - $RBLX, $90 - $GOOGL, $150 - $TSLA
Please be careful and do not over allocate into these contracts, and make sure to maximize the amount of premium collected, but do not get greedy and take off your exposure when given an opportunity to do so.
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 markets, which did reflect in our results, but despite this, every algorithm we had beat $SPY, and as we allocated into the sector-neutral portfolio, the losses in the pilot were minimized significantly, and the losses incurred were minimized due to being in a hedged portfolio.
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: -1.18%
Our Results:
Market Neutral -0.17%
Sector Neutral -0.27%
Variable Market Neutral -0.53%
Variable Sector Neutral -0.67%
Long-Term Portfolio -0.98%
Base Algorithm -0.98%
Today, due to the uncertainty in the market, we will be allocated to the variable market-neutral strategy. There is an approximate 50% hedge on the portfolio today, resulting in general bullish exposure but still being protected in case the markets react negatively to the markets today.
Please be on the lookout for this allocation as this is the first time we are allocating into a variable strategy in the markets, but today is giving us a great opportunity to test it.
We may exit allocations early today, but going into open, we are anticipating holding this allocation until market close.
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 12/16/2022
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 , $AI , $INTC, $BABA, $AMZN , $META , $AAPL , $MSFT
Free Equity List:
Safe - $SPY
Risky - $AI, $RBLX , $AMZN , $BABA
Position Opportunities:
Look to allocate into strong equities that you anticipate holding until the end of the year
Pick up some leaps in organizations you are bullish on over the span of a couple of years ($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 12/16/2022
S&P U.S. manufacturing PMI (flash) - 9:45 AM ET
S&P U.S. services PMI (flash) - 9:45 AM ET
Notable Earnings for 12/16/2022
Pre-Market Earnings:
Accenture (ACN)
Darden Restaurants (DRI)
Winnebago Industries (WGO)
Wrap up
Overall, today is going to be a tough day for the markets. Capitalize on the opportunities that are available to us through CSPs and making smart day trades, but make sure to practice safe risk management and limit the amount of downside risk exposure you have. Make smart plays and seize the opportunity to realize some gains. Don’t forget to sell those 0DTE CSPs right at open, and feel free to check out Mike’s new article explaining Cash Secured Puts in depth!
Good luck trading, and have a great weekend!