HaiKhuu Daily Trading Report

Good morning and Happy Monday! I hope you all had an amazing weekend and are ready for the terrible month of February in the stock market! I’ve brought this up time and time again to hedge your portfolios and sell out of general long equities you are green on or lack confidence in. Hopefully, you all have listened to the warnings we’ve provided as the markets are starting to come down, and equities are not looking the strongest.

Historically, it states in the almanac that today is a bullish day for the markets, as well as Wednesday, but while actively watching the markets, I am extremely skeptical of the current market condition. I believe we are at a breakdown point of the markets and realistically will slowly grind down to test $400, where when we ultimately break, we will continue to sell off.

I’ll talk more about the market conditions later, but please buckle up and keep your arms and legs inside the vehicle at all times because this is going to be one hell of a rollercoaster.

Thoughts & Comments from 2/03/2023

Last week was a crazy week for the general markets. We watched as the general markets were extremely volatile and provided many opportunities to trade. We started the week out with relative strength as the markets moved up substantially after open on Monday, prior to selling off for the majority of the day. Tuesday, the markets went on a continued bullish run throughout the day, followed by FOMC on Wednesday, resulting in the markets absolutely pumping and providing a significant amount of confidence in the markets for Thursday, where we made an official high of the year with $SPY trading at $418.31.

Friday was an interesting day. On Friday, we watched as there was a significant amount of bullish momentum early in the morning, where we moved up substantially but watched as a massive sell-off occurred into close.

We started the day with $SPY trading at $411.60 and quickly moving up, where we made an official high of the day at $416.97 and watched in the second half of the day, watched as $SPY continued a relative downtrend and limited the amount of gain potential we had in the market, with $SPY dropping approximately 1% from the top and making an intraday low at $411.10 going into close. We ended the day with $SPY trading at $412.35, down $4.43 for the day (1.06%) with an intraday movement of +0.18%.

It was a tough week for the markets that provided us with many opportunities to trade, many opportunities to realize a significant amount of gains, and many opportunities to lose a significant amount of capital.

Hopefully, you all were able to capitalize on the bullish momentum in the markets, and hopefully, you all were able to start selling at the relative peak and hedged your portfolios accordingly at the top.

Great job trading last week, and let’s go on and kill it this week!

Thoughts & Comments for Today 2/06/2023

Today should be an interesting day for the markets. As I stated earlier in this report, the markets are not looking strong at the moment, as people are starting to lose relative confidence and are looking for reasons to be fearful. $SPY did make a pre-market low of $408.39 and has been slowly recovering while writing this report. I would not recommend attempting to go long at this point. Markets are coming down, and there is a general lack of confidence for anyone who is actively investing in the markets. There will be many great opportunities to invest and trade in the future, but for the short term, look to actively trade the momentum in the markets and capitalize on the opportunities that are presented to us.

I would remain relatively cautious at this point in the markets but still retain general holdings to capitalize on the momentum in the markets while assuring that the downside risk potential is limited during this time. Portfolios that are hedged accordingly, and people that are simply holding cash, will outperform during this multiple-week period of a downtrend. Please be careful.

There is a chance that the markets do reverse and go green from opening, as the markets have come down significantly from close on Friday, but I personally do not expect a significant bullish movement intraday.

My recommendation for anyone who is attempting to trade today is to follow the general momentum of the markets and do not attempt to fight the conditions in any way, shape, or form.

Wait for a confirmation of a reversal to enter into your position, take your position off when you start lacking confidence that the momentum will sustain, and wait to repeat. These entries will net you less profits as you are not able to time the bottom out perfectly or time the top out perfectly, but you will make consistent gains as you are able to catch the middle portion of the trade. Don’t get greedy, and capitalize on the opportunities presented to you. A dollar today is worth more than losing on a play.

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 interesting week for the markets. The algorithms underperformed the general markets, but our technical analysis outperformed the long-term portfolio by roughly 2%. It was a tough week for the long-term portfolio as it is more based on general safety positions compared to the markets having high-beta, not fundamentally solid organizations driving the markets up. C’est la vie, our portfolio should do exceptionally well while the markets drop over the next couple of weeks, and we are protected.

We recommend you all read Asher’s Report for an in-depth analysis of the performance of the algorithms last week!

The results of last week are as follows:

Baseline:

The Market +2.83%

Our Results:

Base Algorithm: +1.59%
Variable Market Neutral: +0.28%
Long-Term Portfolio: -0.4%
Variable Sector Neutral: -0.46%
Market Neutral: -0.75%
Sector Neutral: -1.12%

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 , $META, $BABA , $RBLX , $SOFI , $GOOGL , $AAPL , $MSFT
Free Equity List:

Safe - $SPY
Risky - $SOFI, $RBLX, $FXI , $BABA

Position Opportunities:

Start hedging your portfolio while vix is extremely low. Grab multiple puts with a long expiration to protect your portfolio
Set stops in guaranteed profit for any position you have.
Start taking profit on equities you are comfortable selling (Cash will be king in February)
Pick up broad market ETFs slowly ($SPY / $QQQ)

LONG OPPORTUNITIES:

Long-Term Dividend - $GAIN
Long-Term Speculative Play - $META * PLAYED OUT, IF IN SELL*
Short-Term Risky Play - $TSLA * PLAYED OUT, IF IN SELL*
Short-Term Speculative Play - $RBLX * PLAYED OUT, IF IN SELL*

Economic News for 2/06/2023

No economic event is scheduled.

Notable Earnings for 2/06/2023

Pre-Market Earnings:

CNA Financial Corp (CNA )
Cummins Inc (CMI)
ON Semiconductor (ON)
Tyson Foods (TSN)
IDEXX Laboratories (IDXX)
Loews (L)
Energizer Holdings (ENR)
Neurocrine Biosciences (NBIX)
Affiliated Managers Group (AMG)
Timken Company (TKR)

After-Market Earnings:

Activision Blizzard (ATVI)
Simon Property Group (SPG)
Take-Two Interactive (TTWO)
Pinterest (PINS)
Skyworks Solutions (SWKS)
UDR (UDR)
AECOM (ACM)
Zoominfo Technologies (ZI)
Chegg (CHGG)
Spirit Airlines (SAVE)

Wrap up

Overall please be careful in these current market conditions and make sure you are practicing the highest level of risk management. People will get burnt as a result of the momentum in the markets. Do what you can to limit your general downside exposure, and make sure to hedge your long positions and remain solvent. Have cash set aside to limit your downside potential and prepare to allocate long while the markets are at a relative low

Good luck trading today and let’s make the most out of the opportunities presented to us!

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HaiKhuu Daily Report 2/06/2023