HaiKhuu Daily Report 3/09/2023
Good morning and happy Thursday! Markets are looking relatively flat this morning, with no significant movement in the general markets during this premarket session. Please be extremely careful while attempting to trade today and watch out for the momentum in the markets. The underlying market conditions are not optimal at this point and will present to us all an extremely high-risk, high-reward opportunity in the markets. So trade with caution and understand the underlying risks of actively trading at this level. Either we break above the $400 resistance level on $SPY soon and continue to move up with confidence, or make sure that you are properly allocated into wise positions and have capital ready to deploy once we have hit a bottom.
I could see the markets continuing to chop around for the next couple of months as we need some overall stability in the price of equities, but please, as always, be careful, practice safe risk management, and have a plan for your general allocations for the next couple of months.
Thoughts & Comments from 3/08/2023
Yesterday was a rough time for the general markets as a result of Jerome Powell speaking and impacting the markets heavily during that time. We saw a significant amount of chop in the general markets giving us a difficult time to actively trade. After the initial chop happened, markets were relatively slow and did not present us with many opportunities trade. We did see a nice movement up for the day during the last half hour of the trading day, which did provide us with a significant amount of bullish momentum, but the overall day was pretty tough.
We started the day with $SPY trading at $398.35, up ever so slightly from the previous close, and moved up throughout the morning as people were watching Jerome Powell testifying, providing us with an opportunity to scalp towards the upside, but while this was happening in real-time, markets were consistently chopping around. Despite this chop, we did make a high of the day with $SPY trading at $399.71, up significantly from open and testing that $400 resistance level. It was unfortunate that we were not able to break through that resistance, but it was a great opportunity to realize some gains. After rejecting $400, we did come down accordingly, where we continually sold off and consistently made new lows of the day, with the official low of the day at $396.59. Markets were looking weak in the short term, but as I said before, we saw a significant movement up right at close.
During power hour, we watched as the markets came down until it hit the $397 range and watched as the markets pumped up significantly in the last half hour of the day, with the intraday movement going green for the first time in approximately three hours, and pushing up into close. We closed the day officially with $SPY trading at $398.92, up $0.65 for the day or approximately 0.16%, with an intraday bullish movement of +0.13%.
It was a difficult time actively trading yesterday, but in hindsight, provided us with many great opportunities to scalp and realize some gains in the process of everything. I hope you all capitalized on the momentum in the markets and realized some gains in the process of everything.
Thoughts & Comments for Today, 3/09/2023
Today should be an alright day for the general markets as a result of the current market condition. Markets are relatively weak and slightly bearish at the moment, but it is providing us with an opportunity to trade. I believe that we will see many great opportunities to trade today, both on the bullish and the bearish side, but I do also expect to see some chop that will impact people’s ability to navigate the market with relative confidence.
Please be careful trading today, and for the upcoming weeks, with an increased amount of general volatility in the markets, a lot of people will have a difficult time. Practice safe risk management but capitalize on the opportunities that are available to you.
There will be a couple of opportunities here in the short term, so depending on the type of trader you are, you will have a different course of action and should approach the markets as such.
For day traders & scalpers
Expect to have a difficult time in the short term, do not increase risk in an attempt to realize more gains right now. If you are consistent, you will have the best opportunity to make the most amount of money in the short term but are taking on a significant amount of risk and stress to do so efficiently. Take profit early and realize gains when given an opportunity to do so. Do not get stuck in a position, and do not let your losses or emotions get to you.
For swing traders
You WILL have a difficult time in the short term. There will be a significant amount of chop with no great guidance on which direction the market will go. Unless you are perfect at timing your entries and exits, these market conditions will be tough and provide you with relatively little to no return in the short term. Be smart with your general allocations, and make sure you can purchase with relative confidence.
For investors
Sit back and relax, assuming you are investing for the span of 2-5-10-20+ years; this is all short-term BS and will not impact you heavily. Look into finding allocations you want to invest in when given an opportunity at a relative low, sit back and have capital ready to deploy when you believe markets have hit a bottom, and continue to slowly add to your position over the course of time.
For option sellers
Enjoy sitting back and enjoying some consistent gains with your positions. I do not expect to see any sizable returns in the short term unless you are taking on a significant amount of risk with your positions, but you will be able to capitalize on the momentum of this market with relative ease and make the most consistent money compared to anyone in the general markets at the moment. The issue is this is not an optimal time to sell, VIX is relatively low, but there are no major significant movements in the markets, so sit back, relax, and enjoy watching people freak out.
For degen equity gamblers
Oh boy, good luck. Please consider reconsidering your strategy, you will get burnt in these market conditions by getting emotional that your position is not working in your favor, so do what you can do to ease away from actively gambling on equities that you believe will do well randomly for whatever reason.
For degen option gamblers
Get ready to lose your portfolio. Mentally and physically, prepare for that to happen. I do not want to sound like an asshole saying this, but it WILL happen. You may make money here in the short term and make exponentially more percentage-wise than the average trader, but unlike the average trader, you have no consistency where it’s either 0 or 100, and just like an early 2000s BMW with major engine problems, you are most likely going to zero. Option gamblers are going to get destroyed over the next couple of weeks.
If you do not know what strategy you specifically fall under, that is a good thing because that means you are diversified with your strategy and know exactly what you are expecting in the current market.
A mix of the majority of those strategies in this current market condition will provide you with consistency in the markets and provide you with some phenomenal opportunities to realize some gains.
I would recommend that the majority of traders right now look into selling options for consistent realized gains in the short term while utilizing active day trading to increase risk and profit potential. Limit your downside risk with active day trading, but know that there are consistent gains regardless as a result of selling contracts.
This is not the time to increase risk as we are at an indecisive point in the markets. We are either going to move up nicely, which will be great for the bulls, or come down heavily, which will slaughter some bulls and impact people heavily. Just be smart with your allocations in this current market condition and do what you can do to realize some gains when given an opportunity to do so.
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 amazing day for the algorithm and all of the systems that we created. $SPY was slightly bullish over the course of the day, and our main base algorithm decimated its returns. It brings confidence knowing that despite the tough market conditions, our technical analysis did phenomenally. Our LTP was black with minimal losses generated yesterday, but the algorithm trading on that portfolio outperformed it significantly. It was an amazing day, and I am proud of these results.
The results of yesterday are as followed:
Baseline:
$SPY: +0.13%
Our Results:
Base Algorithm 0.63%
Variable Sector Neutral 0.55%
Variable Market Neutral 0.42%
Sector Neutral 0.17%
Market Neutral 0.05%
Long-Term Portfolio -0.03%
For today, please be careful allocating too heavily into the base algorithm, As I’ve been recommending over the previous couple of days, you should look 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 some 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 3/9/2023
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 3/09/2023
Jobless claims - 8:30 AM ET
Fed Barr speaks - 10 AM ET
Notable Earnings for 3/09/2023
Pre-Market Earnings:
JD.com (JD)
Toro Company (TTC)
BJ's Wholesale (BJ)
Babylon Holdings (BBLN)
John Wiley & Sons (WLY)
Paysafe (PSFE)
After-Market Earnings:
Ulta Beauty (ULTA)
Oracle (ORCL)
Wheaton Precious Metals (WPM)
DocuSign (DOCU)
Vail Resorts (MTN)
HashiCorp (HCP)
Gap (GPS)
360 DigiTech (QFIN)
Wrap up
Overall, be careful trading today and for the next couple of weeks. There will be opportunities to make some significant gains in the short term, but there will be many opportunities to get burnt at the same time. Do what you can to limit your downside risk, but capitalize on the upside opportunities. Make some smart positions and realize some gains trading!
Good luck trading today, and let’s make some bank!