HaiKhuu Daily Report 4/20/2023
Good morning and happy Thursday! Hope you are excited about what is going to be an interesting day for the markets as a result of bearish momentum driven directly by Tesla dropping on earnings and heavily impacting the markets. There will be many opportunities to actively trade and realize some gains in the realtime, but please be careful and tread lightly, as this is just the beginning of the upcoming earnings season. A lot will happen in the near future, with a significant amount of bearish momentum driving the markets. Let’s hope that things pick up here in the short term and positively impact the markets, as we will need it and need it soon, or else this transitional period is going to be tough. Just a reminder again to start looking to hold more cash and hedge your accounts accordingly prior to this earnings season and what will be a difficult summer.
Good luck trading today, let’s try to make the most of it!
Thoughts & Comments from 4/19/2023
Yesterday was an extremely interesting time for the general markets, with a significant amount of bullish momentum. The overall movement for the day was honestly irrelevant in the grand scheme of things, as we saw minimal day-to-day movement in $SPY. This was one of those weird yet beautiful days where the official low of the day was literally the open price of $SPY.
We started the day with the markets opening down, with $SPY trading at $412.17, down $2 from the previous close of $414.21, showing relative weakness during the pre-market session. The markets did move up slightly going into open, but did not show a significant amount of confidence. The markets reflected this by being relatively flat from open price for the first half hour of the day.
After that first half hour of the day, though, we watched as there was a shift in the momentum in the general markets as $SPY shifted and moved up, showing signs of confidence in the markets. We moved up significantly throughout the entirety of the day. The movement up was choppy yet extremely consistent, providing us with an amazing opportunity to enter into a day trade at the beginning of the day and exit by close with relative ease.
As volume came back after the lunchtime lull, we watched as there was a continuation of confidence in the markets, officially going green for the day a little after 1 pm EST.
The markets continued to trickle up throughout the afternoon to the point where we tested psychological resistance at $415 on $SPY. During power hour, we were not able to break and hold this level, but we were able to make an official high of the day with $SPY trading at $415.08.
During the final half hour of the trading day, we watched as $SPY did sell-off and lost a small portion of the gains that were incurred throughout the day, but did provide us with an amazing opportunity to exit prior to the end of the trading day.
We ended the day with $SPY trading at $414.14, down a total of −$0.07 from the previous close, or approximately 0.017%, with an intraday bullish movement of 0.46%.
The overall day-to-day movement on the markets was honestly irrelevant as there was no substantial movement in the greater markets, but we were provided with an amazing opportunity to buy at open and sell at any time throughout the day and realize gains with ease. It was an amazing day for day traders but provided difficulty for anyone who was bearish or attempted to scalp during the process.
Hopefully, you all were able to realize a significant amount of gains while trading yesterday and are prepared for what should be an interesting day of trading today!
Thoughts & Comments for Today, 4/20/2023
This should be an interesting day for the markets. During the pre-market session, we have a significant amount of economic news, and we have continual news and speakers throughout the entire trading day. I will say this now, and I will continue to say it again. Please be safe in these market conditions and look to decrease risk where possible. Start loading up on more cash and cutting positions you are not confident in, and start to slowly hedge positions that you are in and that you want to continue to hold. I believe we will see a significant amount of bearish momentum and chop over the upcoming months, which will make trading relatively difficult for the majority going into the summer.
There will be many trading opportunities that get brought up today as a result of the volatility and momentum that will be in the markets, but it will be extremely difficult to capitalize on them in real time. A recommendation that I make for the majority of people who are going to be attempting to scalp and day trade is to be extremely careful. I would not recommend the majority of individuals attempt to catch any bottoms that are presented to you today unless you are 100% confident in your allocation and timing. Lots of people are going to get burnt today as a result of attempting to catch a falling knife, so let the knife fall, let it hit the ground, and only once you are confident that there is a confirmation of a reversal, should you enter into that allocation. I am telling you all this right now, the majority of retail traders will not be profitable over the next 3-6 month period, assuming they are actively trading and scalping, trying to catch short-term movements.
The safest thing you can do right now is to start liquidating positions you do not have confidence in, look to hold more cash, and simply hedge your portfolio and wait out these market conditions. People will have a tough time waiting, as psychologically, we all want that instant gratification, but we have to all understand the realism of the markets and understand that just simply because you want to allocate into something and want instant profits, that is not how the markets operate.
Look to sell covered calls on positions you want to hold. Look to purchase hedges on your position, or at least on the general indices, and have cash prepared to be able to allocate when there is weakness in the markets, and make a gameplan on how you want to navigate the markets here in the short term (next 2-3 months)
Lots of people are going to get clapped in the process of preparing for the summer, so do what you can do to limit your downside risk now, to not incur losses in the future.
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, with a significant amount of bullish momentum from open. Our algorithm did well and followed the movement of the general markets. Our technical analysis did outperform our fundamental analysis. The markets outperformed the base algorithm slightly but did not outperform in a way to cause any genuine concern. I am happy with the results of yesterday and am excited to see how the algorithms react in rougher market conditions. Hopefully, safety will outperform here in the near future, where our fundamental analysis continually beats out $SPY by a large margin.
To get an in-depth analysis of our algorithms' performance, check out Asher’s Report!
The results of yesterday are as followed:
Baseline:
$SPY: +0.46%
Our Results:
Base Algorithm: +0.34%
Variable Sector Neutral: +0.05%
Variable Market Neutral: -0.06%
Long-Term Portfolio: -0.13%
Market Neutral: -0.5%
Sector Neutral: -0.53%
With the markets being in a rough time at this moment, I would highly advise caution in the general markets while attempting to allocate to higher beta stocks that will move heavily. There will be many opportunities to trade in the short term, but they will be difficult to find with confidence. So please practice safe risk management with any and all of these allocations, and make sure to do your due diligence prior to entering into anything. Some of these positions will do well today, but being confident in your allocation will matter the most in the grand scheme of things.
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 4/20/2023
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 , $TSLA , $GOOGL, $AAPL , $NVDA
Free Equity List:
Safe - $SPY
Risky - $RIVN
Position Opportunities:
Start hedging positions you want to hold
Set stops in guaranteed profit for any position you are in profit in
Start exiting positions you are comfortable taking profit in
LONG OPPORTUNITIES:
Long-Term Dividend - $GAIN
Long-Term Riskier EV Play - $RIVN
Economic News for 4/20/2023
Initial jobless claims - 8:30 AM ET
Continuing jobless claims - 8:30 AM ET
Philadelphia Fed manufacturing survey - 8:30 AM ET
Existing home sales - 10 AM ET
U.S. leading economic indicators - 10 AM ET
Fed Gov. Christopher Waller speaks - 12 PM ET
Cleveland Fed President Loretta Mester speaks - 12:20 PM ET
Dallas Fed listens with Dallas Fed President Lorie Logan and Fed Gov. Michelle Bowman - 3 PM ET
Atlanta Fed President Raphael Bostic speaks - 5 PM ET
Notable Earnings for 4/20/2023
Pre-Market Earnings:
Taiwan Semiconductor (TSM)
Philip Morris (PM)
AT&T Inc (T)
Union Pacific Corp (UNP)
American Express (AXP)
Blackstone (BX)
Marsh & McLennan (MMC)
Truist Financial Corp (TFC)
Nucor Corporation (NUE), Nokia (NOK)
After-Market Earnings:
CSX Corporation (CSX)
PPG Industries (PPG)
WR Berkley Corp (WRB)
Seagate Technology (STX)
Knight Transportation (KNX)
Valmont Industries (VMI)
Bank OZK (OZK)
Independent Bank Corp (INDB)
Associated Banc-Corp (ASB)
SEI Investments Company (SEIC)
Wrap up
Overall, there should be a significant amount of momentum in the markets making it difficult for the majority of the traders to realize some gains while trading today. Please be safe and practice risk management, prepare your account for what is going to be a long summer and make sure to start allocating towards cash and hedging your account accordingly
Good luck trading, and let’s have some fun while trading today!