HaiKhuu Daily Trading Report

Wow, these market conditions genuinely are starting to heat up with a significant amount of movement.

Good morning, and happy Thursday! I hope you traders are following this market momentum because these conditions are absolutely insane and are generating a significant amount of both gains and losses.

Just this week, we’ve seen $SPY hit new 52-week highs, and we’ve watched as $QQQ hit an all-time high, then watched as they rejected that high and came crashing down almost 2% within the final hour and a half of the trading day yesterday. We are back in greed on the Fear and Greed index, meaning that we’ve started to come back down from extreme greed, but there is still significant strength in the markets.

The markets are up nicely during this pre-market session, which is a general sign of confidence, but also is displaying confusion in the process.

$SPY is up half a percent at the time of writing this report and will most likely change by opening, so please prepare accordingly for today and take advantage of the opportunities available in these current market conditions.

Make sure to read the entire report to see the sentiment for the day!

Good luck trading today, and let’s see what happens!

The updated $SPY daily levels are as follows:
Conversion Line Support: $467.68
Baseline Support: $462.01
Strong Psychological Support: $470
Daily Cloud Support: $431.44

Thoughts & Comments from Yesterday, 12/20/2023

Yesterday genuinely was a disgusting day for the markets. There were opportunities to trade as the markets did push towards a new 52-week high, but everyone across the board should have had a significant amount of difficulty as a result of the massive drop in the markets. The heatmap was red across the board (Excluding Google). Lots of people got wiped out towards the downside. It was a swift kick in the portfolio, but hopefully, you all were able to capitalize on both the upside and downside momentum in the markets.

$SPY started the day slightly red, opening at $473.92, down approximately a dollar from the previous close. Conditions were looking strong as $SPY continually moved up throughout the morning, displaying a significant amount of strength throughout the morning, and before we knew it, $SPY was testing and creating new 52-week highs.

Market momentum did slow down around the lunchtime lull, but that was expected. Thankfully, things did pick up slowly as volume came back into the markets, providing us with relative confidence as $SPY went on to make the official 52-week high trading at $457.89, and was displaying significant strength.

But this is where everything got extremely difficult.

Market momentum across the board was extremely strong, and it provided us with opportunities to trade and capitalize on the momentum in the process, but as $SPY started to come down after making the official high of the day, we displayed weakness in the markets, and the selling only continued to grow and become worst and worst.

$SPY started off by first breaking below the 1-Minute cloud, having a weak bearish TK-Cross under, not displaying a significant amount of fear, but was able to break below that point with relative ease, as $SPY was trading at $475.50.

After the selling started though, it quickly snowballed into more and more rapid selling, creating genuine chaos, making it extremely difficult to know how to allocate into the markets. We moved down too quickly to make an official low of the day to want to be bearish and caught a lot of people who attempted to catch a falling knife, myself included.

$SPY continued to dive during the final two hours of the day, quickly going from $475 to breaking below that support and continually falling and making new official lows of the day.

We watched as there were a couple of opportunities to capitalize on some quick movements in the markets and watched as there was a quick little dead cat bounce during power hour, where $SPY went from trading at $469 back to $471 before selling off again into the close.

The official low of the day on $SPY was $467.83, and it genuinely was not a good feeling for anyone who was caught in any plays during the process.

We ended the day with $SPY trading at $468.26, down $6.58 for the day, or down approximately 1.4%, with an intraday bearish movement of -1.2%. $SPY dropped approximately 1.7% from the top, and genuinely was an extremely difficult time to both trade and capitalize on the markets.

Hopefully, you all were able to come out of yesterday relatively unscathed, but we all understand the reality of a bloody day like yesterday. Many people were able to realize a significant amount of gains by capitalizing on the bearish momentum in the markets, but many more people were impacted heavily by this movement.

Let’s see what the markets have in store for us today, and let’s make the most out of these opportunities that are available to us.

Thoughts & Comments for Today, 12/21/2023

Today should be an extremely confusing day for the markets that provide us with opportunities to trade and capitalize on this difficult market momentum. As I said before, $SPY is up nicely during the pre-market session, and we are looking extremely strong after the selling that we saw yesterday. Many people are going to have a lot of difficulties while attempting to trade today, and many more people are going to genuinely be confused about how to navigate these conditions.

My best suggestion for everyone who is attempting to trade today, is not to be greedy, allocate accordingly, and practice safe risk management. No one genuinely knows which direction the markets are headed today, and many people are going to get wiped out in the process while attempting to allocate in these conditions without a solid game plan.

Tread lightly on these market conditions, keep your fists up, and protect your bottom line.

Make sure to have stops set in place for any position that you are actively in or attempting to trade, and make sure that you are minimizing the amount of downside risk you have.

There is a high likelihood that the sell-off we saw yesterday was a fake out and a bear trap, and there is also a high likelihood that this was just a little bit of selling to stop people out of their positions before the markets rally, but in the case that it is not, please prepare accordingly.

I wouldn’t say to be overly bullish or bearish in these market conditions, but this is 100% the time for you to practice risk management and only allocate into the markets when you are both comfortable and confident with taking on exposure.

This is still in my opinion, not the time to attempt to allocate long into the markets, but this is genuinely a traders’s paradise. I know I talked about this before, and I will bring it up again. With the market momentum we are seeing and the volatility in the markets, there are going to be many great opportunities to scalp and trade throughout the day, but it is just a matter of entering into the right positions with confidence, riding the momentum, and realizing gains.

Market conditions are still extremely strong, but as a result of yesterday, there has been a quick check in general market confidence.

Capitalize on the opportunities that are available to us, but do not overtrade and do not force any positions you are personally not comfortable or confident in, as many traders will get emotional and overtrade in the case their position is not going in their favor.

For my personal allocations today, I know how I want to allocate, and it sucks that it is not exciting. I am very interested in actively scalping the opportunities that are available in these conditions, but I want to practice safe risk management and not over-trade or be over-exposed. I will wait at open to see the direction of the markets and the sentiment that we will watch throughout the day. I will be mostly sitting on my hands as these conditions are not optimal for speculation, and with the uncertainty of the current market conditions, I do not want to be overexposed in less-than-optimal positions. I want to be bullish as a result of the strength in the markets and the fact that we have bounced off of the daily conversion line support, but it is too soon to be confident in a bounce.

Let’s just see what happens in these market conditions. Just make sure you are allocating into the markets today to practice safe risk management and to limit your downside risk. There will be many trades that are presented to us today, so make some smart decisions and allocate accordingly.

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 rough day for the markets, and all of our bullish strategies remained in line with $SPY. I am not concerned with the performance as everything did remain within a tolerable range of the $SPY performance, but it was just a tough day for the systems. I am happy to see that the general neutral strategies were able to outperform the markets by a large margin, doing exactly what they were supposed to do, and remain relatively neutral and profitable despite market conditions being tough.

The results of yesterday are as follows:

Baseline:

$SPY: -1.2%

Our Results:

Sector Neutral: +0.26%
Market Neutral: +0.12%
Variable Sector Neutral: -0.84%
Variable Market Neutral: -0.84%
Long Term Portfolio: -1.17%
Base Algorithm: -1.26%

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, $X, $BABA , $AAPL , $MSFT, $KO , $BA, $RIVN, $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
Long-Term Auto Sector - $F
Speculative Re-Entry - $DIS / $RIVN

Economic News for 12/21/2023

Jobless Claims - 8:30 AM ET
GDP QoQ Final - 8:30 AM ET
PCE Prices Final - 8:30 AM ET
Kansas City Fed Manufacturing Survey - 8:30 AM ET
Leading Economic Indicators - 10:00 AM ET
US 4-Week Bill Auction - 11:30 AM ET

Notable Earnings for 12/21/2023

Pre-Market Earnings:

Carnival Corp (CCL)
Cintas Corp (CTAS)
Paychex (PAYX)
Apogee Enterprises (APOG)

After-Market Earnings:

Nike (NKE)
AAR Corp (AIR)
Mission Produce (AVO)
Cemtrex (CETX)

Wrap up

This will be an extremely interesting day for the markets. Make sure to tread lightly on these market conditions and prepare to fight. We should see some interesting movement in the markets as a result of both yesterday and this pre-market movement, so prepare accordingly. Don’t be overly bullish. Don’t be overly bearish. Follow the market momentum and practice safe risk management. This should be a lot of fun trading, so let’s make the most out of the opportunities that are available to us.

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

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HaiKhuu Daily Report 12/21/2023