HaiKhuu Daily Report 3/31/2023
Good morning and happy Friday! Hope you traders are excited for what should be an extremely interesting day for the markets! $SPY is slightly up at the time of writing this report, but we have a significant amount of economic news. With things slowly getting stronger, let’s all hope that this momentum is able to stay. We are at the lower end of Neutral on the Fear & Greed index, which is an amazing sign for us as traders as it shows that confidence in the markets is slowly coming back from the fear state it used to be in as a result of the banking crisis.
Hopefully, you all have been loading up on strong equities if this momentum continues the way we all hope and expect it to, we should be able to generate a significant amount of realized gains in an extremely short period of time.
Good luck trading today, and let’s make some BANK!
Thoughts & Comments from 3/30/2023
Yesterday was a confusing day for the general markets. We saw some mild bearish momentum but overall confidence in the general markets. We didn’t see any significant movement from open to close but were able to realize some gains as a result of a strong futures session. We started the day with $SPY trading at $404.01, up significantly from the previous close at $401.35, and really did not want to move up that much. We watched as $SPY came down ever so slightly from open before pushing up the make the official high of the day trading at $404.34, only slightly higher than where we opened.
After making the high of the day started, the shift of intraday momentum and watched as the markets continued to slow burn throughout the entire morning and the majority of the afternoon. $SPY dropped consistently for pretty much four hours until we made an official low of day trading at $401.76 and finally reached a bottom. This movement down was not anything of major significance as it was only a ~0.5% drop from open, but the process of watching the slow burn sucked. $SPY was still green for the day, though, and it was nice watching it recover during power hour.
We moved up after making the low of the day, with $SPY pushing up throughout power hour and making a relative high into close. We recovered the majority of the losses that were incurred in the morning but had to watch as the markets moved extremely slowly throughout the entire day. $SPY ended the day trading at $403.70, up $2.35 for the day, or approximately 0.6% from the previous close, but had an intraday bearish movement of -0.09%.
There were not many opportunities to trade throughout the day, and it was a better move to sit back and watch as your strong equity positions move up slightly and retain the majority of the gains incurred throughout this beautiful week. If you were able to trade and generate some realized gains yesterday, great job! And if you sat back and enjoyed watching your gains do their thing, great job too! Anyone who was generally bullish yesterday should have had a relatively easier time generating unrealized gains and had a relatively relaxing day in the process.
Thoughts & Comments for Today, 3/31/2023
Today should be a fun day for the markets. As I said earlier, there is a significant amount of economic news coming out prior to markets opening, so we will see a significant amount of pre-market movement that will really dictate the momentum in the markets. I would urge caution just out of safety. Markets are up slightly at the time of writing this report and will not move too heavily between now and when the economic news is live. Please expect today to be extremely choppy and momentum based as a result of that economic news.
I would not recommend looking into selling some 0-DTE CSPs today as a result of relatively lower momentum and higher cost of equities. You can still sell highly OTM 0-DTE CSPs, but the premium you would collect on the position would be relatively minimal if any at all.
If you are actively scalping or trading today, please be cautious. As I said earlier, there will be a significant amount of momentum and chop in the markets today. There will be many opportunities for the markets to chop around and heavily impact your trading. Take advantage of the momentum in the markets, but do not get greedy in any way, shape, or form. Lots of people will be able to generate a sizable amount of realized gains trading today, but at the same time, a lot of people will get burnt in the process of attempting it. Do what you can to limit your downside risk potential, but understand that risks will be increased exponentially while trading today. Max pain is at $399, and I would say that there is only a low chance of us hitting that point, but realistically in these market conditions, anything can happen.
With us out of fear on the fear & greed index, I am expecting us to continue to move up as more confidence comes back into the general markets. If we are at neutral with $SPY above $400, we can easily continue and push up to a new of the year with ease and continue moving up from there. Obviously, this is all just speculation and a lot can change between then and now, but realistically, there is a solid chance this happens. It is optimistic thinking about this in the short term, mostly back when we were in extreme fear, but the ball is in motion, and as long as nothing knocks it off course, give it a couple of weeks and refer back to my previous posts. Continue holding positions you are invested in, and look to set a stop in guaranteed profit on any position you’ve purchased over the previous two weeks. Look to take risk off the table for the newer positions you’ve entered, and continue to hold allocations you are confident in. With markets moving up and a shift in confidence, we can continue to move up extremely nicely, so make sure you have proper exposure to capitalize on this bullish momentum.
Side note, I would not recommend people hold option contracts in lieu of holding equities unless you are purchasing multiple year out leaps. Over the next couple of weeks, I would expect us to remain relatively neutral, with a significant amount of chop and not much directional movement in the market. Some organizations will go up, and some organizations will come down, but the market overall should remain relatively flat. Once the markets start to break out of the trend that they are in, then we will see some significant bullish momentum. The question is, when will that breakout officially happen? In a couple of weeks? In a couple of months? At the end of the year? There is a lot of time that can happen in between, and assuming you are holding options in lieu of equities, you’ll end up watching theta burn you for what couple be a couple of months, whereas if you simply held equity, the possible percent return is lower, but the realized gains of the position itself would be higher.
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 interesting day for the markets where we opened beautifully green, but intraday, there was not much bullish momentum. This obviously impacted the algorithm, with everything being within an extremely narrow range. We beat the market across the board with all of our positions and watched as our technical analysis slightly out perform our fundamental analysis. It was an alright day for the algorithms, but I am happy to see it beat the markets.
To get an in-depth analysis of our algorithms' performance, check out Asher’s Report!
The results of yesterday are as followed:
Baseline:
$SPY: -0.09%
Our Results:
Market Neutral: +0.25%
Variable Sector Neutral: +0.23%
Variable Market Neutral: +0.23%
Base Algorithm: +0.16%
Sector Neutral: +0.1%
Long Term Portfolio: -0.05%
Please be careful today, with a significant amount of news coming out prior to markets opening and impacting the momentum of the day, I am not sure on the direction of the markets. Please make sure you are practicing safe risk management in the process of actively trading these tickers today. I would recommend only to take these positions assuming that the economic news positively impacts momentum where we move up accordingly with ease. If the markets come down on news, I would recommend staying away from these alerts today. As always, please make sure to take profits when happy, set a stop in guaranteed profits to limit downside risk, and increase those limits when given an opportunity to do so!
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 3/31/2023
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, $META , $AMZN , $BA , $AAPL , $MSFT , $BABA
Free Equity List:
Safe - $SPY
Risky - $RIVN / $BABA
Position Opportunities:
Hold positions you have confidence in
Set stops in guaranteed profit to decrease all exposure risk
Take profit on positions you are in profit in and not confident about
LONG OPPORTUNITIES:
Long-Term Dividend - $GAIN
Long-Term Riskier EV Play - $RIVN
Economic News for 3/31/2023
Personal income (nominal) - 8:30 AM ET
Personal spending (nominal) - 8:30 AM ET
PCE index - 8:30 AM ET
Core PCE index - 8:30 AM ET
PCE (year-over-year) - 8:30 AM ET
Core PCE (year-over-year) - 8:30 AM ET
Chicago Business Barometer - 9:45 AM ET
Consumer sentiment (final) - 10 AM ET
Fed Gov. Waller speaks - 10 AM ET
New York Fed President Williams speaks - 3:05 PM ET
Fed Gov. Cook speaks - 5:45 PM ET
Notable Earnings for 3/31/2023
Pre-Market Earnings:
I-MAB (IMAB)
Consolidated Water (CWCO)
Wrap up
Overall, with a significant amount of economic news impacting the markets today, please make sure to practice safe risk management and look to follow the momentum in the markets. Lots of people in the short term will get burnt in the process of trading today, so be smart and only take positions you are personally confident in. Do not over-trade, be happy taking gains and realize your gains when given an opportunity to do so!
Good luck trading today, and I hope you all have an amazing weekend!