HaiKhuu Daily Report 12/23/2022
Good morning, happy Friday, and merry early Christmas! With the markets looking extremely enticing at these levels, please look out for opportunities to actively trade and realize some gains, but please make sure to limit the amount of general exposure to the markets.
With the Santa Claus Rally possibly coming up soon, we are in a great spot for the markets to move up accordingly. There is a good chance that this event does not happen this year, but please be on the lookout and anticipate the best, as the majority of traders do not expect this to happen. As a result, there is a chance that it does actually happen and fake traders out. As I’ve said, from early 2022, I expect $SPY to close around $400 at EOY, so it would be surprising to see if that comes true.
Don’t forget to pick up last-minute Christmas gifts, and make sure to have fun this weekend with your family and loved ones! Merry Christmas and happy final days of Hanukkah!
Thoughts & Comments from 12/22/2022
Yesterday was a rough day for the markets. With the markets coming down into open, it was very clear that there was going to be a significant amount of bearish momentum within the day, and it played out perfectly. With the markets trending up going into open, $SPY looked strong, but with us selling off into open, I warned everyone to be cautious and actively hedge as a significant amount of traders would get hurt by the movement down in the market, which was true with yesterday. $SPY opened the day trading at $383.05 and made a relative high of the day trading at $383.37, right from opening before the markets sold off significantly.
We saw continual selling throughout the entire day with no great opportunities to get long throughout the entire morning. Once we broke $380 on $SPY, the markets continued to sell off rapidly, causing a significant amount of fear and irrational selling in the markets. With all of the selling and panic in the markets, we went on to make a low of the day, with $SPY trading at $374.77, meaning $SPY dropped over 2% from open, dropping over 3% since Wednesday's close.
Thankfully, once we did officially start reversing, we quickly bounced back above the $375 support level on $SPY and moved up accordingly into close. $SPY ended the day trading at $380.72, down $5.51 from Wednesday’s close, or down -1.43%, with an intraday return of -0.61%.
It was a tough day overall for the markets, with many opportunities to get burnt toward the downside, but presented us with opportunities to actively make bearish allocations throughout the morning and play the reversal to the upside with relative confidence.
Hopefully, you all seized the opportunities presented to you yesterday and realized a significant amount of gains in the process of everything.
$SPY ONE MINUTE INTRADAY CHART 12/22
Thoughts & Comments for Today 12/23/2022
Today will be an interesting day that will be guided specifically by the economic news that will be released pre-market. Please watch for this economic news prior to allocating in case the markets sell-off. I believe there is a great chance the markets come down accordingly on PCE data.
Expect selling on the release of economic news. This selling should theoretically get bought back up over the course of the day, but please be careful in the case that we break and hold below $380 on $SPY. With the markets moving significantly prior to opening, please be cautious in attempting to time out an allocation too early in the day before everyone is able to gauge general movement in the markets.
Wait until opportunities are presented to go long in the general markets, but regardless of the movement that happens at open, look to open a significant amount of 0-DTE CSPs for today to collect some premium going into this long weekend.
I personally expect a significant amount of traders to have a difficult time trading today, so please just be smart while trading, limit the amount of general exposure you have in the markets, and practice safe risk management. Increase the amount of general exposure you take with each allocation, but set tighter stop losses and take profits quicker when trading.
Tesla will be sketchy to trade, but I would recommend that people look into allocating into strong high beta allocations in the case the markets dip.
Good luck trading today, and be smart with your positions!
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 amazing day for the algorithms, regardless of whichever allocation you ultimately decided to pick. With the pilot, we picked the Market Neutral strategy and were able to realize +0.53% returns yesterday with relative ease. But every single algorithm would have netted you a positive return for the day. Terrible day for the markets but a wonderful day for the algorithms! Hopefully you all followed the allocations of yesterday and were able to generate profits with us!
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: -0.61%
Our Results:
Market Neutral 0.70%
Variable Market Neutral 0.57%
Variable Sector Neutral 0.43%
Base Algorithm 0.43%
Sector Neutral 0.29%
Long-Term Portfolio 0.06%
Today, we are not sure which allocation style we want to make prior to the market open as a result of economic news today. Please be careful taking any alerts today because markets will be relatively irrational. Please just allocate wisely in the markets and follow the general momentum to realize a significant amount of gains when given an opportunity to do so.
Our decision will be made in real-time after economic news is released at 8:30 am EST.
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 12/23/2022
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 , $BA , $BABA ,$TSLA , $RBLX, $AAPL , $GOOGL , $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 12/23/2022
PCE price index - 8:30 AM ET
Core PCE price index - 8:30 AM ET
PCE price index (year-on-year) - 8:30 AM ET
Core PCE price index (year-on-year) - 8:30 AM ET
Real disposable income (SAAR) - 8:30 AM ET
Real consumer spending (SAAR) - 8:30 AM ET
Durable goods orders - 8:30 AM ET
Core capital equipment orders - 8:30 AM ET
UMich consumer sentiment index (late) - 10 AM ET
UMich 5-year inflation expectations (late) - 10 AM ET
New home sales (SAAR) - 10 AM ET
Notable Earnings for 12/23/2022
Pre-Market Earnings:
None
Wrap up
Overall, PLEASE be smart today and have a wonderful holiday season with your loved ones! It’s been one insane year for the markets and a rough time in the markets. Capitalize on the opportunities that are available today and follow the general momentum in the markets!
Good luck trading today, and have a Merry Christmas!