HaiKhuu Daily Report 4/21/2023
Good morning and happy Friday! Hope you traders are ready for the weekend and have some fun plans in the works. Today is a monthly expiration, so please be ready for some volatility and momentum in the markets, presenting us with great opportunities to day trade and scalp.
Please be careful attempting to scalp and trade today, as a lot of people are going to have a difficult time attempting to do so today and, as a result, realize a significant amount of losses in the process.
Max pain today on $SPY is $405, I do not realistically believe that this will happen, but in the case we see a significant amount of bearish momentum, anything can realistically happen, resulting in even more realized losses.
Just be smart while attempting to trade today, minimize your risk, and be happy realizing some gains. Good luck trading, and let’s make some bank!
Thoughts & Comments from 4/20/2023
Yesterday was an extremely interesting day for the general markets, with a significant amount of momentum impacting the markets and the overall returns for the day. $SPY opened the day down significantly, at $411.31, down almost $3 from the previous close of $414.14, and showed weakness as the result of $TSLA having a bad Q1 earnings call. Despite this sentiment, we moved up significantly right from opening, as there was some solid buying momentum after open.
The markets moved up into lunch but took a slight dip during the lunchtime lull, where we lacked both volume and momentum in the markets. After people started to come back from lunch, we saw momentum and volume picked up again, causing us to move up significantly into the final hours of the day. $SPY did go on to make an official high of the day at $413.70, still down from the previous open price but up nicely from open.
Despite making a relative high, we did watch as the markets come down from it quickly, with $SPY going from a high of $413 all the way down to test $410 in a matter of an hour and a half during power hour.
Thankfully, after we did make the low of the day, the markets did quickly recover into close, pushing up from the low of the day but not providing us with a significant amount of confidence for today. We ended the day with $SPY trading at $411.88, down $2.26 from the previous close, or down approximately 0.55%, with an intraday movement of +0.15%. There were many great opportunities to trade within the day, despite the difficulties to navigate the markets and the significant movement that was incurred intraday. I hope you all were able to capitalize on the opportunities available to us and realized some gains in the process. It was a difficult time to trade yesterday, so let’s hope that today is significantly better!
Thoughts & Comments for Today, 4/21/2023
Today should be a fun time for a lot of traders and an unfortunately devastating time for others. Please be on the lookout for opportunities to actively trade, but please make sure that you are practicing proper risk management in the process of everything. Lots of traders will get burnt in the relative short term as a result of volatility and chop. So limit your downside risk potential and make sure you are confident in both your allocation as well as your timing.
I would advise against attempting to purchase and hold any equities at this price as we are at an indecisive point in the markets, where things realistically can come down extremely hard, quickly, over the next couple of weeks in the markets. Look to capitalize on the opportunities that are available, but make sure to protect yourself against that downside. I will continue to say this in the short term, look to start hedging your accounts now while you have an opportunity to do so when equity prices are high and volatility is low. It is an amazing opportunity to purchase some puts to assure that you are able to capitalize on the opportunity that is presented to us.
For any positions that you want to retain in the short term, I would recommend looking into selling covered calls too that are out of the money in the short term to collect the extra premium.
Cash will be king soon as the markets come down heavily going into the summer, so look to start selling positions you personally are not the most confident in and looking to take profit on positions you do not want to hold through the summer. I still am a firm believer we will see a significant amount of bullish momentum toward the end of the year, and I do believe that one of the best swing trade opportunities will be among us shortly. Make sure to have cash set aside to allocate at what you believe is a phenomenal price here in a couple of weeks/couple of months, prepare to hold through short-term BS, and prepare to sell at what is the top of one of the most insane rallies we’ve seen to date.
Something to consider in the near future is looking to get ITM, or ATM leaps on equity positions that you personally are extremely bullish in over the next couple of years to limit general exposure and minimize the capital requirement for that exposure. This is an expensive way to purchase equities that you anticipate holding as you will be paying a premium on top of the equity you already own, but it gives you an amazing opportunity to decrease the capital requirement by 70-80%, depending on the position you anticipate entering.
Let’s see what happens today, and let’s see what happens over the upcoming weeks. I believe this will be a fun time for anyone who is on the right side in the markets and prepared for this downturn…. and uh…. good luck to anyone who is not prepared for what should be an extremely volatile summer.
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 algorithms, with the markets acting so irrationally. The base long-term portfolio consistently outperformed both our technical analysis and $SPY. It is interesting seeing the general shift in the market conditions and seeing that the safety portfolio is slowly but more consistently beating out technical analysis in the short term.
To get an in-depth analysis of our algorithms' performance, check out Asher’s Report!
The results of yesterday are as followed:
Baseline:
$SPY: +0.15%
Our Results:
Long Term Portfolio: +0.17%
Variable Sector Neutral: -0.09%
Sector Neutral: -0.17%
Base Algorithm: -0.18%
Variable Market Neutral: -0.28%
Market Neutral: -0.37%
I would advise relative caution towards entering into any of these positions too heavily without doing proper due diligence, allocations for the day are valid from a technical analysis standpoint, but I lack confidence in the general markets at the moment, where I would not recommend blind entries on any allocations in general across the board. Please practice safe risk management when entering into any of these allocations and make sure to practice safe risk management in the process.
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 4/21/2023
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 4/21/2023
S&P flash U.S. services PMI - 9:45 AM ET
S&P flash U.S. manufacturing PMI - 9:45 AM ET
Fed Gov Lisa Cook speaks - 4:35
Notable Earnings for 4/21/2023
Pre-Market Earnings:
Procter & Gamble (PG)
SAP SE (SAP)
HCA Healthcare (HCA)
Schlumberger NV (SLB)
Freeport-McMoran (FCX)
Regions Financial Corp (RF)
Autoliv, Inc (ALV)
Wrap up
Overall, please just be smart when attempting to enter any trades today and, as always, practice safe risk management. Markets will be volatile as a result of monthly expirations being today, so take that into account prior to entering or exiting any positions. Let the markets do their thing and follow the momentum. Realize some gains when you are happy, and do not get greedy.
Good luck trading, and I hope you all have an amazing weekend!