HaiKhuu Daily Report 2/09/2023
Good morning and happy Thursday! Markets are looking strong at the moment, with $SPY pushing up significantly during this pre-market session. There is relative strength in the market right now, but I am still concerned about the larger market condition. Capitalize on the opportunities that are presented to us in the current market condition by actively day trading. But I would be careful holding unprotected long positions at the moment and would urge selling positions you want to take profit in and hedge positions you want to hold. I’ll throw a couple of tips and ideas down below.
Thoughts & Comments from 2/08/2023
Yesterday was a rough day for the general markets. The conditions were not optimal nor provided us with great opportunities to trade. Everything was extremely choppy, and we watched as $GOOGL dropped under $100, down almost 8% for the day, and companies like $MSFT have a relatively neutral day.
The day started out extremely optimistic as we started to run at open. $SPY opened the day trading at $413.18 and quickly ran up to test $414.25 twice before rejecting the resistance and continually coming down as a result. We watched as $SPY continued to sell throughout the morning, making a relative low trading at $410.25. We did see a nice recovery after making the relative low, with $SPY coming back up to VWAP but rejecting the five-minute cloud resistance. After that rejection, we watched as a downtrend formed, resulting in chop and continual selling throughout the day.
$SPY made an official low of day trading at $409.93 and recovered slightly into close. $SPY ended the day trading at $410.65, down $4.54 or approximately 1.09%, with an intraday movement of -0.6%.
Tough day for the overall markets, but it did provide us with many opportunities to scalp and trade. Hopefully, you all took the opportunity to capitalize on the general momentum, and I hope that you all realized some gains.
$SPY ONE MINUTE INTRADAY CHART 2/08
Thoughts & Comments for Today 2/09/2023
Today is going to be a confusing time for the general markets. With $SPY continuing to move up, I think we honestly are loading up for a massive wipeout in the markets. There is significantly more confidence in the general markets right now from retail traders than there has been for the majority of 2022.
People are feeling too comfortable and confident in the market conditions, so please be extremely careful moving forward. I do expect to see some bullish momentum in the short term that is followed by choppy market conditions, but I am still firm on my stance that we will see a market correction here within the next couple of weeks.
Please capitalize on this momentum when given an opportunity to do so and continue to hedge your portfolio accordingly. My general recommendation for these current market conditions is to actively scalp and day trade the momentum to realize some gains in the short term, sell longer positions you do not anticipate holding, and look to hedge your position by selling either in the money calls, or purchasing puts as protection against your position.
If you are seeing a large bearish movement coming, cash will be key to purchasing equities at a phenomenal price in the near future. If you are holding cash, you will not be able to realize a significant amount of gains in the short term in these current market conditions, but it will pay off in the long run, assuming you are able to time your entry at the bottom accordingly.
A recommendation that I brought up earlier was selling in the money calls on positions that you already have, that you want to hold but are happy selling at a certain price. A recent example of an ITM-Covered call is if you got into $TSLA at a great price. Let’s say your average is $110, and $TSLA is currently trading at $210. You want to hold your equity, but you want to realize some of those gains, if not all of them, because you are up $100 a share.
What you can do, is look to sell the $175 $TSLA call for 2 months out because you are expecting to see a short drop in $TSLA but are able to pick up $37 in premium for selling that contract. One of two things will happen, you either sell your position at $212 and call it a day on the position, or you watch as $TSLA comes down with the market back to the $175~ Range (Example numbers). With $TSLA back at $175, your contract expires worthless, you collected the premium inbetween now and the correction, AND you still have your equity. It is a win on both sides and is something that you should consider.
You can also close this position out early, assuming that the movement is in your favor, but you’d like to take the CC off. I would recommend this for skilled traders who are anticipating holding a position long but don’t want to necessarily watch the short-term gains on a position go down the drain.
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 tough day for the markets, but as expected, our systems outperformed the markets. The large majority of our allocations yesterday did great, but our technical analysis did underperform. Our general Long Term Portfolio was able to cut the amount of losses generated in the market by half, so that gives us confidence that despite market conditions being difficult, the exposure has continued to outperform the market and provide us with consistent returns over the course of time.
To see more statistics on the performance of the algorithms, check out Asher’s Report!
The results of yesterday are as follows:
Baseline:
The Market -0.6%
Our Results:
Sector Neutral: +0.22%
Long-Term Portfolio: -0.29%
Market Neutral: -0.48%
Variable Market Neutral: -0.68%
Base Algorithm: -0.85%
Variable Sector Neutral: -0.89%
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.
Generated entries for 2/09/2023
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 2/09/2023
Initial jobless claims - 8:30 AM ET
Continuing jobless claims - 8:30 AM ET
Notable Earnings for 2/09/2023
Pre-Market Earnings:
AbbVie Inc (ABBV)
Apollo Global (APO)
Philip Morris International (PM)
AstraZeneca (AZN)
Thomson Reuters (TRI)
Baxter International (BAX)
Duke Energy (DUK)
Hilton Worldwide Holding (HLT)
Kellogg Company (K)
PepsiCo (PEP)
After-Market Earnings:
PayPal Holdings (PYPL)
Motorola Solutions (MSI)
DexCom (DXCM)
Expedia Group (EXPE)
Cloudflare (NET)
Equity Residential (EQR)
VeriSign (VRSN)
Ventas (VTR)
News Corporation (NWSA)
Lyft (LYFT)
Wrap up
Overall, please be safe while trading today. Capitalize on the bullish momentum and opportunities that are presented to us and realize some gains when given an opportunity to do so. This bullish momentum is beautiful but is not sustainable in the short term. Seize the momentum while you can and hedge your portfolio accordingly.
Good luck, and let’s make some bank!