HaiKhuu Daily Trading Report

Good morning and Happy Friday! I hope you all are feeling amazing and are properly hedged! $SPY is down at the time of writing this report, and markets are looking rough. Please, as I have warned you recently, be careful with your general allocations in the market and protect your portfolio.

It will be a little late hedging & selling allocations now. You can still sell and hedge, but the positions will not be as optimal as when $SPY was at the top. C’est la vie, I am expecting we will see a bullish pop sometime next week, followed by an even larger sell-off. You can always start hedging now and add to it later, but please be careful.

Great job to anyone who has prepared their portfolios accordingly and is up significantly on your hedges and down significantly less on your equities.

The markets will be tricky over the next couple of weeks, so please be careful and practice safe risk management. I’ll touch on this later in this report

Thoughts & Comments from 2/09/2023

Yesterday was a rough day for the markets, with not many good opportunities to scalp or trade. It was a great day for the bears and people who hedged their accounts accordingly, but tough on the traders and anyone else who was not prepared for the momentum of the day.

We started the day off with $SPY trading at $414.49 and starting the downtrend right from open. We did test the open price once, prior to rejecting extremely hard and continuing to sell throughout the day.

Going into luck, we watched as $SPY continued to sell but found some support around $412, but were not able to break through that resistance level, and as you expect, the markets continued to come down.

$SPY tested $410 extremely hard and attempted to break through resistance, but as expected, it did not and continued to sell off for the rest of the trading day.

We officially made a low of the day with $SPY trading at $405.82 during the back half of power hour, and there was a significant amount of buying strength after we hit that low. $SPY climbed back up and tested $408 before ultimately closing at $405.82.

It was a tough time for the overall markets, with $SPY down -$3.56 (0.87%) from the previous close and a -1.77% movement from open. Lots of people got burnt, and even more, people started to become emotional at the slightest hint of being blood in the market.

Hopefully, you all listened to my warnings about hedging at the top, but let’s hope this bleeding ends soon. Good luck to you all, and great job to anyone who came out of yesterday as a profitable trader!

Thoughts & Comments for Today 2/10/2023

Today is going to be a rough day for the greater markets. I have to warn you all to be extremely careful right now as a result of the greater market conditions. There is a chance we do see a market reversal today, but I am expecting to see a mild bullish run early next week before we ultimately come down harder.

Please make sure you are not overallocated and that you are practicing safe risk management. A lot of people will get hurt significantly as a result of this bullish momentum, as they were high on the markets. On the fear and greed index, we are still in greed, which means there are more opportunities to come down in the relatively short term. People are feeling too good and optimistic about their investments right now.

It would not surprise me to see a quick move up to $410~ on $SPY, but realistically I am targeting high $380’s low $390s on $SPY in the next couple of weeks, with opportunities to go lower if people get extremely fearful. If things get extremely bad, it would not surprise me to see us back in the $370’s range. I know it sounds like I have a tinfoil hat at the moment, but realistically I would say there is a high probability that we see a drop like that within the next couple of weeks.

I have a couple of recommendations for multiple different types of investors in the markets:

I would recommend people who are looking to scalp right now be extremely careful. There will be many opportunities to scalp in the short term, but timing those positions out in real-time, will be extremely difficult, as many of the opportunities that will be available to scalp will be 1-3 minute candle opportunities before the trend continues.
If you are day trading, you have to be smart to make sure you are not attempting to catch a falling knife. Wait for a confirmation of a reversal and make sure to set stops in a guaranteed profit and secure profit on the way up.
If you are swing trading, please make sure you have cash set aside, ready to purchase at what we believe is a relative bottom and take off positions that you are not comfortable in. This is NOT the time to get into any active scalps.
If you are an investor, this is a short-term BS movement in the larger markets. Do not worry about this general movement, and look to add on solid allocations here in a couple of weeks.

The safest method of investing and trading at this moment, in my opinion, is to have cash and active hedges on every position you are holding.

ITM-CC’s that you anticipate going OTM
- Covered Calls protect your short term profits
Puts that are ATM on positions you want to hold
- Puts protects you from the downside momentum
Cash set aside ready to invest
- You will not be over allocated + Are able to purchase equities cheap when the markets hit a bottom.

Just be careful in these current market conditions and pray that this drop is only a short term drop. I do not like being a bear, but in these current market conditions, I would rather be smart and understand what is happening, versus lie to myself and trying to be optimistic.

Practice safe risk management and be smart.

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 unfortunately rough day for the markets where our systems did not perform the best. We noted that our Market & Sector neutral portfolios did exceptionally well, but our variable hedged systems underperformed as a general result of the community being exceptionally bullish for the day. Our technical analysis underperformed the market everso slightly, but C’est la vie. It was a tough day for the markets.

To see more statistics on the algorithm's performance, check out Asher’s Report!

The results of yesterday are as follows:

Baseline:

The Market -1.77%

Our Results:

Market Neutral: +0.01%
Sector Neutral: -0.17%
Long Term Portfolio: -1.23%
Variable Sector Neutral: -1.39%
Variable Market Neutral: -1.43%
Base Algorithm: -2.01%

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 2/10/2023

UMich consumer sentiment index (early) - 10 AM ET
UMich 1-year inflation expectations (early) - 10 AM ET
UMich 5-year inflation expectations (early) - 10 AM ET
Fed Gov. Christopher Waller speaks - 12:30 PM ET
Federal budget balance - 2 PM ET
Philadelphia Fed President Patrick Harker speaks - 4 PM ET

Notable Earnings for 2/10/2023

Pre-Market Earnings:

Enbridge (ENB)
Fortis (FTS)
Honda Motor (HMC)
Magna International (MGA)
Newell Brands (NWL)
Mr. Cooper Group (COOP)
Spectrum Brands (SPB)
WP Carey Inc (WPC)
IQVIA Holdings (IQV)
Sensient Technologies (SXT)

Wrap up

Overall, please just be safe in the current market conditions. There is an opportunity that we move up in the short term, but in the grande scheme of things, expect some more bearish momentum. Be smart, be realistic, and allocate your portfolio wisely.

Good luck trading over the next couple of weeks, and have a great weekend!

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HaiKhuu Daily Report 2/10/2023