HaiKhuu Daily Report 2/15/2023
Good morning and happy Wednesday! I hope you all are in a phenomenal mood and are ready to trade and have a great time in the current market conditions! Markets are looking weak going into market open but are not looking exceptionally bearish. We are down approximately a point on $SPY at the time of writing this report, but the confidence and momentum is not there.
There will be a good chance that the markets do bounce and move up accordingly today, but realistically, I would be extremely cautious about touching the market in this current condition. Lots of people who purchased general option contracts will get burnt as a result of a dropping Theta and relatively small movements in the overall markets. Scalpers will get burnt attempting to trade this chop, and swing traders will get burnt from purchasing overpriced equities in the short term.
Please make sure to have cash set aside to allocate to the markets, make sure to practice safe risk management, and limit the amount of general exposure you are taking on at the moment as we are about to go on an extremely bumpy ride.
Max pain for Friday is $402, which in my opinion is not an extreme drop in the current market, we are only talking a little above a 2% drop from the current location, but there is a high probability that this happens as a result of lack of confidence and people fearing what will happen over the next couple of weeks.
Please be safe and remain liquid while the markets are irrational.
Thoughts & Comments from 2/14/2023
Yesterday was an interesting yet extremely tough day for the general markets, and I hope you all did alright. During the pre-market session, we had CPI numbers come out, which heavily impacted the markets. Used car prices were down significantly, which did influence the general data. The numbers overall looked terrible, but prospectively, the used car market essentially saved the report.
$SPY increased significantly, making a new high at $416.67 during the pre-market session after the data was reported, and we watched as the markets quickly chopped around and came down as people were processing the numbers.
We opened the day officially trading at $411.29 and watched as there was a quick fake out driving us to make a new relative low, to then rip and rally to make our intraday high. We made that high with $SPY trading at $415.05 and showed that there was a lack of confidence in the $415 area before coming down significantly. We rejected $415 and continually sold off for the next two hours, where we went on to make an official low of day trading at $408.51.
The markets were looking weak but significantly oversold under $410, so we watched as the markets came back up accordingly, where we hovered around $413 for the large majority of the rest of the day and watched as there was relatively little to no movement at all for the last three hours of the trading day.
There was a lot of chop that ultimately caused scalpers and day traders to have a tough time and lose on their positions, and we watched as FIX continued to drop despite there being no significant movement into the close.
We ended the day with a quick sell-off after touching $413.50 once again and officially closed the day at $412.64, down -$0.19 or approximately 0.046% from the previous close.
The overall movement did not seem significant at all, with the movement being less than 0.05%, but if you look at the intraday general movements in the markets, you would see that the intraday momentum provided us with many opportunities to scalp, trade, and get burnt in the process.
Hopefully, you all were able to capitalize on the opportunities presented to you and were able to realize some gains in the relative short term. It was a tough day for the markets but it provided us with many opportunities to trade.
$SPY ONE MINUTE INTRADAY CHART 2/14
Thoughts & Comments for Today 2/15/2023
Today will be a tough day for the markets. There is a significant amount of economic news that will come out after this report, so there is a chance of recovery and confidence that we will move up, but realistically I would not plan on that.
We are coming to the $410 support level on $SPY, and as I said before, $SPY’s max pain for this Friday is $402. Realistically, there is a good chance that this happens, assuming that confidence continues to slip in the short term and that we continue to sell in this fashion. Equities are overpriced in the short term, so I do not believe that there is much more room to the upside.
Think about it this way, $TSLA was trading right above $100 a couple of weeks ago, and no one wanted to touch it. $TSLA is currently trading at $214, and people are excited to buy $TSLA now. Realistically, one of two things will happen. People that FOMO in at the top are correct, and the markets continue to move up accordingly, or realistically, people are overpaying for equities in the short term entering here and will, unfortunately, lose a significant amount here over the next couple of weeks.
Please be careful because I really am not excited to see what happens in the general equities markets over the next couple of weeks. I am expecting to see a significant amount of continued selling in the short term and am excited to see what will happen in the case that we sell off as this will provide us with a great opportunity to actively purchase solid equities at a phenomenal price.
At least in the short term, do not look to go long any major equities unless you have a significantly longer timeframe (2-3 years) and are more than happy to purchase now, average down accordingly when given an opportunity to do so, and forget about your holdings until then.
Look to hedge your positions and take profit when given an opportunity to do so, and look to grab some general bearish positions as I am expecting us to see some downside over the next couple of weeks in the general markets.
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. Thankfully we did not actively allocate anything to the pilot so it provided us with an opportunity to reflect on the general markets and watch as the markets did their thing. Our grapher bot should be back and live at the end of today, and our market sentiment analysis game is back online and live. Make sure to check it out and respond, as we are officially restarting the game, and this session will be live until the end of the month! Prizes this month are going to be insane so check it out and participate to win some fun prizes!
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
Economic News for 2/15/2023
Retail sales - 8:30 AM ET
Retail sales excluding motor vehicles - 8:30 AM ET
Empire state manufacturing index - 8:30 AM ET
Industrial production index - 9:15 AM ET
Capacity utilization rate - 9:15 AM ET
NAHB home builders' index - 10 AM ET
Business inventories - 10 AM ET
Notable Earnings for 2/15/2023
Pre-Market Earnings:
Analog Devices (ADI)
Barrick Gold Corp (GOLD)
Biogen (BIIB)
Fidelity National (FIS)
Generac Holdings (GNRC)
Trade Desk (TTD)
Kraft Heinz (KHC)
Lithia & Driveway (LAD)
Sonic Automotive (SAH)
Roblox Corp (RBLX)
After-Market Earnings:
Cisco Systems (CSCO)
Equinix (EQIX)
Shopify (SHOP)
Synopsys (SNPS)
American International Group (AIG)
Nutrien (NTR)
Energy Transfer (ET)
Welltower (WELL)
Zillow Group (Z)
Roku (ROKU)
Wrap up
Overall, please be safe in these current market conditions. Things are looking rough but only are going to get worst in my opinion. Please be careful as a lot of people will realize a significant amount of losses over the next couple of weeks. Take advantage of the opportunities that present themselves but make sure to limit your risk and manage it accordingly.
Good luck trading today and realize some gains!