HaiKhuu Daily Report 3/08/2023
Good morning and happy Wednesday! Hope you are excited to trade today as we have Jerome Powell speaking again. Markets were relatively strong yesterday until Jerrome Powell started speaking, which started a downtrend, and watched as $SPY sold off significantly and has taken us under the $400 support level. Please be careful actively trading right now as a result of this, but look to take advantage of the opportunities that are available. Traders right now will either make significantly elevated gains or incur some significant losses. Just be smart in the process of everything and limit the amount of risk you take, but when given an opportunity to do so, seize the opportunities available and capitalize on the momentum.
Ideally, we see Jerome Powell pump the markets back to relative highs today, but as we all know, this will be a toss-up that will impact the markets heavily.
Good luck trading today, and let’s make some bank!
Thoughts & Comments from 3/07/2023
Yesterday was a tough day for the general markets, as I stated before, as a result of Jerome Powell testifying in front of the Senate, causing the markets to tank, we saw a significant amount of general bearish momentum in the markets, heavily impacting the outlook in the markets.
We started the day relatively strong, with $SPY trading at $404.47, showing strength compared to the previous close and people being optimistic about Jerome Powell speaking and making statements to the senate. Despite this confidence in the markets and people anticipating JP, the second his statements went live, we watched as the markets came down heavily and continued to come down throughout the entire morning. This left a lot of people burnt and attempting to continue to play towards the upside. As we all can see, there was no relative upside. The high of the day was $404.67, only $0.20 higher than the open price, and we watched as the markets continually sold off throughout the entire day.
Markets broke the $400 support level after testing it multiple times, and when we officially broke it and held, we watched as there was continued selling throughout the rest of the day. Going into power hour, we did make an official low of the day, with $SPY trading at $397.63, and watched as $SPY recovered ever-so-slightly into close, with $SPY closing the day at $398.27, down $6.20 for the day or approximately 1.53%, with an intraday bearish movement of 1.5%.
It was a tough day for the markets and an even rougher day for anyone who attempted to catch any bottoms. There were opportunities to scalp to the upside, but the bears won yesterday. As a Chicagoan, it is weird saying the bears won… but they did.
Hopefully, you all were able to realize some gains in the process of everything yesterday, and if you incurred any losses, those losses were relatively minimal.
Good luck trading today, as we have Jerome speaking again, and let’s have some fun!
Thoughts & Comments for Today, 3/08/2023
Today just like yesterday, will be a fun day with lots of opportunities to trade and many opportunities to get burnt. Please be careful with Jerome Powell testifying in front of the house today, as there will be a lot of volume, volatility, and momentum as a result. Do not fight the general momentum that is the result of Jerome talking, and please be safe in the process. Limit your downside risk in the case that we come down heavily, but be properly allocated in the case the markets go on a tear. We could see some insane bullish momentum today, assuming Jerome Powell does pump the markets, so please be prepared for that accordingly.
Please practice safe risk management because we are at risk of falling down again, and when we come down, we will come down extremely quickly, with $SPY dropping between 3-5% over the span of a couple of days. This, in reality, is not a significant drop, but if you are overallocated and are not properly prepared, you will feel some heat.
You could start hedging your account here, but in reality, I do believe it is a little late to start to hedge as the initial movement has already happened.
In the case that we sell off, I do not believe the selling will be sustained and will only be a relatively short amount of selling before the markets recover and move up, prior to chopping around again. Cash will continue to be king in this marketplace as the only true safe haven to not incur any losses in the relative short term. You will miss out on the opportunities to realize some gains towards the upside but at the same time.
I personally still am holding the majority of my portfolio in cash and do not anticipate allocating heavily into the markets in the relative short term. The only position I am still holding that is of any major significance is my position on $RIVN, I still have the same outlook as before, despite this fall in the price of equity.
Hold until $20~. Start scaling out of the position slowly via selling ITM-covered calls. Start selling equity at $25, dump everything, and be 100% out by the time it hits $35. I do not anticipate this happening within the next couple of weeks, but realistically towards the end of the year. There will be many fluctuations between then and now. I do not anticipate entering more than what I am currently in at the moment, but if the price of equity drops approximately another 20-30%, I will look to add more to my position and continue to hold over the timeframe of this position. I am not worried in any way, shape, or form about this position, but there is a good chance after the selling that was incurred yesterday that, there will be some heat in this position!
Just continue to be smart with your general allocations in the markets, as conditions are not optimal at this moment. We are at the lower end of neutral in the fear & greed index, which is a good sign for us as traders but a bad sign for the general markets. There is optimism that things can recover easier while we are at this level but is a sign of risk coming back into the markets. Limit your downside exposure and prepare to allocate with strength to the 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 tough day for the markets, but thankfully everything that we had in place performed as expected. Our neutral strategies worked out as expected, being relatively neutral compared to the downside of the overall markets, and the bullish strategies worked out as expected, with the losses being in line with the general markets and our technical analysis performing better than the base portfolio it was built on. Ideally, we would have had a better response to the market conditions, but C’est la vie, we live on for another day.
The results of yesterday are as followed:
Baseline:
$SPY: -1.51%
Our Results:
Market Neutral: +0.08%
Sector Neutral: -0.02%
Variable Market Neutral: -0.76%
Variable Sector Neutral: -0.79%
Long-Term Portfolio: -1.54%
Base Algorithm: -1.69%
To get an in-depth analysis of the performance of our Algorithms, check out Asher’s Report!
With Jerome Powell speaking today, please be careful taking on any general bullish allocations without doing your proper DD on these positions. These positions are accurate from a technical analysis standpoint, and I am confident in the systems, but as a result of the greater market conditions at this moment, I am relatively cautious and not confident that the markets will blindly go up today. So if you are taking on any of these positions, make sure to cherrypick your favorite positions that you believe will outperform and realize some gains when given an opportunity to do so.
Set stop losses and increase those limits to guarantee profits!
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.
Algorithmic Alerts for 3/8/2023
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 , $RIVN, $BABA , $TSLA , $NVDA , $F , $GOOG/L , $AAPL
Free Equity List:
Safe - $SPY
Risky - $RIVN
Position Opportunities:
Start allocating slowly into the markets
Invest in smart positions that you have confidence in
Start taking profit on shorts & hedges
Start DCA-ing in positions you want to hold over the course of time.
LONG OPPORTUNITIES:
Long-Term Dividend - $GAIN
Long-Term Riskier EV Play - $RIVN
Economic News for 3/08/2023
ADP employment - 8:15 AM ET
U.S. trade balance - 8:30 AM ET
Fed Chairman Powell testifies to House - 10 AM ET'
Job openings (JOLTS) - 10 AM ET
Beige Book - 2 PM ET
Notable Earnings for 3/08/2023
Pre-Market Earnings:
ABM Industries (ABM)
Campbell Soup (CPB)
Full Truck Alliance Co (YMM)
Life Time Group Holdings (LTH)
Korn Ferry (KFY)
United Natural Foods (UNFI)
After-Market Earnings:
MongoDB (MDB)
Asana (ASAN)
Dada Nexus (DADA)
Vermilion Energy (VET)
Wrap up
Overall, please just be smart while actively trading today, but capitalize on the opportunities that are available to you in the short term. If the markets start pumping, run with it, and if the markets continue to dump, use it as an opportunity to make some gains. People will make a lot of money trading today if that is you is determined by skill, timing, getting accurate direction, and a little bit of luck. Limit your downside risk potential, and make sure to realize gains when given an opportunity to do so!
Good luck trading today, and let’s make some bank today!