HaiKhuu Daily Trading Report

Good morning, and happy Monday! I hope you wonderful traders all had an amazing weekend and are prepared for what is going to be a fun time for the markets.

$SPY is up slightly at the time of writing this report, and it should be interesting to see what happens in the near future. Momentum has slowed down slightly over the previous couple of days, but there is still a significant amount of strength in the markets that we can very easily capitalize on. Continue to tread lightly on these market conditions and simply follow the momentum in the markets. Do not attempt to fight any trends, and just be smart in the process of everything.

Expect volatility and general market volume to slow down leading into the holiday season, so take that into account when you are preparing for what is going to be a fun couple of weeks to end this year strong.

At the moment, on a year-to-date basis, the S&P 500 has already moved up roughly 23% YTD, the DOW is up roughly 12.5%, and NASDAQ is up 53.2%.

This has been an absolutely insane year for the markets, so let’s do what we can to continue to capitalize on this market momentum and have a great time in the process!

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

The updated $SPY daily levels are as follows:
Conversion Line Support: $464.02
Baseline Support: $453.78
Strong Psychological Support: $450
Daily Cloud Support: $431.44

Thoughts & Comments from Last Week

Last week was an absolutely insane time for the markets. All of the indices made a new 52-week high, and $SPY was up roughly $10 or roughly 2%. There was some phenomenal bullish momentum and opportunities to capitalize on the market. Semiconductors had a phenomenal week, while many of the larger general technology companies unfortunately had a difficult time. It was a great week for the overall markets and an even better week if you were able to follow the market momentum with confidence.

We started the week with $SPY opening at $459.69, below the $460 resistance level, and making a new 52-week high for the markets. There was great bullish momentum that was extremely easy to follow and capitalize on, as $SPY had continued to push throughout the entire day, providing us with extreme confidence. $SPY made the official high of the day on Monday, trading at $462.17, and ended the day officially trading at $461.99.

Tuesday was another great day for the markets as $SPY continued to push new 52-week highs. $SPY opened the day, trading slightly down from the previous close, opening at $461.63, but displayed a significant amount of strength in the process. We did see that $SPY did drop on an intraday basis to make the official low of the day trading at $460.60 but rallied all the way into close, where the new 52-week high at that point became $464.20, and we ended the day with $SPY trading at $464.10.

Wednesday was the day that everyone cared about, though. We had a lot of economic news that came out that positively impacted the markets. The morning was relatively rough as there was some solid bullish momentum starting the day off as $SPY opened the day trading at $464.49, but we did watch as $SPY did sell off into the lunchtime lull as people were waiting to hear news about the FOMC’s decision on the interest rates. Exactly at 2 PM EST, there was a significant amount of bullish confidence that flooded back into the markets as the rates remained unchanged and $SPY absolutely flew in the process, continuing to make new 52-week highs in the process, and only continued to move up as Jerome Powell took the stage and answered a couple of questions. We ended the day with $SPY, making a new 52-week high into the close, with the high being $470.76 and ending the day trading at $470.50. This was the most significant movement we saw throughout the entire week, and it was an amazing time capitalizing on that strength and confidence in the markets.

Thursday was a little bit more rough of a day, but we did make a new 52-week high in the process. $SPY opened the day looking extremely strong, opening the day trading at $472.50, which was a new 52-week high, and moved up to make the official 52-week high trading at $473.73, and displaying a significant amount of strength in the process. $SPY did unfortunately come down throughout the day with some choppy inconsistencies in the markets, making it extremely difficult to trade with confidence, but through the process, it provided us with many great opportunities to realize a significant amount of gains in the process. We dropped for the large majority of the day, where we did make the official low of the day trading at $469.25, and ended the day right above the $470 psychological support, ending the day at $470.10. It was a tough time if you were attempting to trade as it was an extremely inconsistent day, but regardless, it was a great time in the process, assuming you were able to capitalize on the momentum in the markets.

Friday was a choppy and difficult day for the markets, though. It was triple witching, implying there was going to be a significant amount of volatility and movement, but unfortunately, there was just an extremely tight range that made trading extremely difficult. $SPY opened the day trading at $469.60, down from the previous close, and continually chopped around that price for the first hour of the day until we started to go up during the lunchtime lull. $SPY went on to make the relative high trading before coming down as volume and selling volume started to come back into the markets. Markets quickly went black for the day once we sold off, meaning that if you simply bought and held $SPY for the first five hours of the trading day, you would not have been able to generate any sort of realized gains in the process. Leading into the back half of the afternoon, though, $SPY did drop and continued to sell off, where we went on to make the official low of the day, trading at $468.44. There was some general fear in the process, but it was extremely slow with tough momentum all across the board to capitalize on, but there was some slight bullish momentum after we bounced from the official low of the day into close. Power hour was relatively calm, and there was choppy bullish momentum, but traders could have easily capitalized on the movement up by simply buying and holding in the process. The interesting part is within the final 15 minutes of the day. $SPY was trading at $469.10 before quickly rallying and causing a lot of confusion. During this time, $SPY did make the official high of the day, trading at $470.70 before quickly getting snapped back down into close. We ended the day with $SPY trading at $469.33, down $0.77 for the day, or down approximately 0.16%, with an intraday bearish movement of 0.02%. It was definitely an extremely difficult day for the markets, but it did at least allow us an opportunity to trade in the process.

I hope that you all had an amazing time trading last week because there really were many great opportunities to capitalize on the market momentum and simply ride the wave. It was a great week to trade, and let’s see what the end of the year has in store for us. Market momentum is slowing down, but there is still a significant amount of strength that we can all easily capitalize on in the process. This should be a fun time, so let’s end this year with some strength in the markets and have a phenomenal time in the process!

Thoughts & Comments for Today, 12/18/2023

Today should be another interesting day for the markets. At the time of writing this report, $SPY is up ever so slightly from the close on Friday, but it is not enough to generate a significant amount of confidence in the process. I am excited to see what happens today, but I know that it will be extremely difficult to navigate these conditions with relative confidence. Market conditions are still extremely strong, and we have reached extreme greed on the fear and greed index. There is a lot of confusion about the current sentiment in the markets and the direction that we are headed. This confusion, mixed with what is going to be decreasing volume throughout the week, will make trading with confidence difficult and will make trading extremely inconsistent.

As I have been saying, I would not advise being overly bullish or bearish in these market conditions but simply following the momentum and taking the markets on a trade-by-trade basis. There are many organizations right now that are highly overvalued, which will make it extremely difficult to allocate into the markets with confidence, but at the same time, there are going to be many organizations that are displaying signs of general optimism and opportunity.

If you are looking to allocate long into the markets, just remember that this is currently a stock pickers market, and will remain that way for the near future.

You should continue to look for opportunities that are available while looking to minimize general risk but, at the same time, increase your profit potential.

Look for organizations that are showing signs of opportunity, with relatively lower risk, and look to define your risk prior to entering your position, knowing exactly when you want to enter and exit those said positions. We will see many organizations do phenomenally; now, it is just a matter of finding those positions and allocating accordingly.

If you are actively trading, look to have some fun in these market conditions. Markets are going to be extremely inconsistent and choppy, but this will provide you with many great opportunities. As long as you are scaling into your positions properly and are practicing safe risk management, you should have a great time trading. It will be difficult to capitalize on these opportunities, but despite the difficulties, you will constantly be presented with opportunities to trade with relative confidence.

Be smart and be safe in these market conditions, but do what you can to limit your downside risk, mostly while markets are expected to be extremely choppy and inconsistent.

The performance of traders going into the end of the year will be subjective, as the best traders are going to have a difficult time, but some lucky traders are going to have a great time. As long as you are able to continually decrease your risk while continuing to outperform the movement of $SPY in perspective to your portfolio, you are in a great spot.

Continue to be smart, look to realize gains when you are given an opportunity, and realize gains in the process of everything. Do not get greedy, do not get emotional, and use logic while attempting to trade.

For my personal allocations today, I honestly do not know how much I will be able to trade. The office is going to have an internet outage, and as a result, I do not want to allocate too heavily to the markets or active trades due to that ongoing risk. Markets are looking good during the pre-market session, and because of that, I do want to enter into the markets, but due to outside variables impacting my ability to allocate with confidence, I do not want to take on exposure knowing that at any moment the internet will be shutting off. If I were going to allocate today, I am looking at some relatively higher-beta allocations and would want to look for quick opportunities to scalp organizations like $RIVN through the day, as I do believe there is solid potential and opportunity with scalping $RIVN at these levels. You have to be quick with your allocations and confident in the direction, but assuming you are able to catch the momentum, you should be able to have a great time in the process. The biggest thing really for me in these conditions is having confidence in an allocation and being willing to sit on your hands, knowing that market conditions are going to be extremely difficult to navigate and will be extremely inconsistent as a result. Be smart, be safe in these conditions, and practice safe risk management. There is a massive downside risk in the markets right now, and we will see a correction overall, but at the same time, markets are displaying significant strength, which will allow us the confidence to trade in the short term.

This is going to be an extremely interesting time for the markets, so let’s all hope that market momentum continues with relative strength and that the markets continue to move up indefinitely. This market momentum is not going to last, but it is here for now, so do what you can to increase your profit potential and realize some gains.

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

HaiKhuu Proprietary Algorithm Report:

Last week was an absolutely amazing week for both the markets and our systems. The long-term portfolio outperformed $SPY by an extremely nice margin, and the base algorithm outperformed the long-term portfolio. The algorithm almost doubled the return of $SPY last week, even with $SPY having one of the best weeks in 2023. This was a great surprise, and we are all very happy with the results. Obviously, we do not want to put in too much confidence from the results of a single week, but it does bring a lot of confidence to the algorithm’s ability to capitalize on these market conditions. We will continue to see what happens, but we are happy about these results.

The results of last week are as follows:

Baseline:

$SPY: +2.2%

Our Results:

Base Algorithm: +4.19%
Variable Market Neutral: +3.04%
Long Term Portfolio: +2.88%
Variable Sector Neutral: +2.36%
Market Neutral: +2.08%
Sector Neutral: +0.77%

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, $BA, $F, $MSFT, $COST, $NVDA , $TSLA

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 / $GIS
Long-Term Auto Sector - $F
Speculative Re-Entry - $DIS / $RIVN

Economic News for 12/18/2023

Home Builder Confidence Index - 10:00 AM ET
6-Month Bill Auction - 11:30 AM ET
3-Month Bill Auction - 11:30 AM ET

Notable Earnings for 12/18/2023

Pre-Market Earnings:

China Online Education Group (COE)

After-Market Earnings:

HEICO Corp (HEI)
Quipt Home Medical Corp(QIPT)

Wrap up

This should be an extremely fun day for the markets and an even more fun week. Expect to see lower volume and volatility in the markets, and let’s hope to see the markets continue to move up with confidence and make new 52-week highs in the process. We are extremely close to all-time highs in the markets. Tread lightly, and don’t be overly overly ambitious. Practice safe risk management, but look to maximize your opportunities while you can. This is going to be a great time, so let’s have some fun this week and realize some gains!

Good luck trading today, and let’s have an amazing week!

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HaiKhuu Daily Report 12/18/2023