HaiKhuu Daily Trading Report

Good morning, and happy Wednesday! Markets have been wild, and I hope you all are ready for today. Nasdaq has hit a new ALL TIME HIGH, and general market conditions are extremely strong. Everything is down slightly during the pre-market session, but we are seeing that there is still a significant amount of strength in the markets. This will be an interesting time as momentum has continued to be strong, but overall sentiment has been generally confused over the previous couple of days.

The part that is confusing me at the moment is that we are continuing to edge higher in extreme greed, is the fact that I am seeing more general fear and confusion.

Market conditions are strong right now, and confidence is at the highest point that we’ve seen in 2023, so continue to tread lightly on these market conditions, but maximize the potential you have to realize gains, as this strength is not going to last, but it is here for now. So make the most out of the opportunities, and have a great time in the process of everything.

I’ll talk more about my general sentiment of the current market conditions later on in this report.

Good luck trading today, and let’s have a great time.

The updated $SPY daily levels are as follows:
Conversion Line Support: $466.07
Baseline Support: $460.51
Strong Psychological Support: $470
Daily Cloud Support: $431.44

Thoughts & Comments from Yesterday, 12/19/2023

Yesterday was quite the day for the markets. There was a lot of confusing sentiment, but $SPY hit a new 52-week high, and Nasdaq hit a new all time high. It was quite the day for the markets with opportunities to trade and some strong bullish momentum we all could have very easily capitalized on. Market conditions continued to look strong and were genuinely phenomenal to simply just ride the momentum and have a great time in the process.

We started the day with $SPY trading at $472.45, looking strong, opening above the previous close of $471.97. Conditions were not overly bullish but did display strength in the process. During the entire morning, if you simply were to buy and hold, you would have had a great time, as there was consistent buying momentum driving the markets higher and higher. We only started to slow down as the lunchtime lull came around but continued to look strong in the process. $SPY continued to push 52-week highs in the process, and $SPY made a relative high trading right above $474.

After the lunchtime lull, we did see that there was a slight dip in the markets as selling volume increased, but the dip down was not an unrealistic or crazy movement, just a small intraday dip that should not have caused any fears, and it did give us an opportunity to scalp in the process.

The afternoon was not as favorable as the morning as general momentum was relatively stagnant in comparison, but it at least did provide us opportunities to scalp. Markets slowly moved up and chopped around, but in reality, there was no significant movement until the final hours of the day.

During powerhour, market momentum continued to display relative strength, but in the process, it did not provide us with much confidence. We were testing relative highs of the day, and remained neutral for almost the entirity of the hour, there were no good trading or scalping opportunities that were presented during that time, and it was difficult to trade due to the lack of overall momentum. But things did change heavily during the final ten minutes of the day.

Within the final ten minutes, we watched as the markets rallied into close, where $SPY made a new 52-week high a minute before close, and $QQQ made a new all-time high in the final minute. It was genuinely a confusing time, but it was genuinely a lot of fun watching the momentum in the markets. $SPY ended the day trading at $474.84, up $2.87 for the day, or up approximately 0.60%, with an intraday bullish movement of +0.49%, while $QQQ ended the day trading at $409.16, up $2.08 for the day, or up approximately 0.50%.

It was a phenomenal time for the markets that provided us with countless opportunities to sit back and simply ride the momentum across the board.

I hope you all had a great time in the process and were able to generate both realized and unrealized gains in the process. The new 52-week high on $SPY is $474.91, and the new all-time high for $QQQ is $409.28.

Let’s hope to see new highs in the markets today, but with the current pre-market sentiment, I do not know if we are going to be able to have the momentum and confidence to do so. Let’s see what happens and prepare accordingly!

Thoughts & Comments for Today, 12/20/2023

Today should be a fun day for the markets. There is a significant amount of confusion when it comes to the sentiment in the markets as conditions seem strong and bullish in the overall markets, but we are starting to display signs of relative weakness and momentum slowing down here at the top. Is this the top? Who knows, we can very easily continue to move up over the next couple of days, but from what we are seeing right now general buying momentum is slowing down, and people are displaying confusion about their sentiment. People want the markets to continue to go up, but we are at a point where the movement up has been beautiful, and people are displaying greed in the process. Hopefully, the markets continue to move up, but realistically, there has to be a point where it starts to taper off and we see momentum slowing down, and selling start to pick up. The markets “need” to come down, but that does not mean that it will happen. Realistically, it would not surprise me if, going into the end of the year, there is no Christmas rally or there is only a brief one, and we watch as the markets come down and people are taking profits into the end of the year. This obviously is not ideal, but it is genuinely a situation that you have to consider in the grand scheme of things.

We are seeing the channel between the daily conversion and baseline start to tighten on $SPY, which is not a sign of fear but a sign that momentum is going to start slowing down and that there is a very solid opportunity for conditions to start tightening as we come to test those lines and possibly have a bearish TK cross under. This could obviously be a fake-out opportunity, but it is good to simply just know the overall sentiment and gauge it accordingly while attempting to trade.

I would not be overly bullish or bearish in these market conditions, nor would I recommend allocating long unless you have a significant amount of confidence.

But, with that said, this is a traders’ paradise. Market conditions are strong, there is volume and momentum in the markets, and opportunities are abundant. There are many phenomenal opportunities for traders to realize gains in these conditions, and there is the strength and confidence to be able to capitalize on them consistently.

If you want to get exposure in these market conditions but are not confident in allocating long at these relative highs, look to trade some higher beta organizations that are trending and simply follow the momentum.

This is a difficult time to gauge market conditions, and it is even more difficult to navigate, but as long as you are practicing safe risk management, only entering into positions you have confidence in and taking profits, that is the best way to remain consistent through this confusion.

Look at the markets on a trade-by-trade basis and make smart allocations accordingly.

For my personal allocations today, I will be looking to manage my $GIS position and look for opportunities to trade. $GIS has moved down during the pre-market session on earnings news, which is an unfortunate time, but is getting to the point where I am considering cutting the allocation. Before cutting the position, though, I do want to increase my general exposure at this time and look for opportunities to capitalize on this movement. I will be looking to sell some close expiration, at the money puts and averaging down on my equities, and in the case we continue to retain this level and come down in the process, I will, unfortunately, stop out of my position for a loss and move on from this opportunity. I still have significant confidence in $GIS as an organization, but from a technical and operational standpoint, operations are not looking the best, and the technical signals it is displaying at the moment do not provide us with confidence. I am hoping to see a nice volume-based recovery today in the markets, but if that does not happen, C’est la vie, I’ll cut the position at a loss and move on. It’s tough seeing a movement like this, but it is all just a part of having exposure in the markets in these conditions, mostly going into earnings of an organization. Outside of that, I will be looking to scalp when there is an opportunity to do so. I like that the markets are down during the pre-market session, as it will provide us with opportunities to load up on equities relatively cheaply, but it is just a matter of allocating properly, finding the right positions, and not being overly ambitious.

Just make sure to practice safe risk management today, capitalize on the opportunities that are presented to us, and have a great time in the process of everything.

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 interesting day for the algorithm performances. The variable systems did not hedge their positions, meaning that the variable market neutral strategy performed in line with the base algorithm, but it is interesting to see the disparity between the sector-neutral portfolio underperforming heavily against everything else and the variable sector neutral outperforming all of the other systems. I’ll talk to Asher about this discrepency and see what that is about and keep you all updated.

The results of yesterday are as follows:

Baseline:

$SPY: +0.49%

Our Results:

Variable Sector Neutral: +0.55%
Base Algorithm: +0.35%
Variable Market Neutral: +0.35%
Long Term Portfolio: +0.33%
Market Neutral: -0.1%
Sector Neutral: -0.23%

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*, $F, $RIVN, $BABA, $AAPL, $MSFT, $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 12/20/2023

US Current Account - 8:30 AM ET
Existing Home Sales - 10:00 AM ET
CB Consumer Confidence - 10:00 AM ET
US 20-Year Bond Auction - 1:00 PM ET

Notable Earnings for 12/20/2023

Pre-Market Earnings:

General Mills (GIS)
Winnebago Industries (WGO)
Toro Company (TTC)

After-Market Earnings:

Micron Technology (MU)
MillerKnoll (MLKN)
Worthington Industries (WOR)

Wrap up

This should be an interesting day for the markets, with the general sentiment being in a state of confusion right now; let’s tread lightly on these market conditions and do what we can to maximize the opportunities that are presented to us at this time. Conditions are still looking extremely strong, but we are starting to see signs of momentum slowing down and bearish sentiment starting to increase, so practice safe risk management, but have some fun in the process. Make some smart plays today, realize some gains, and follow the general market momentum.

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

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HaiKhuu Daily Report 12/20/2023