HaiKhuu Daily Report 4/25/2023
Good morning and happy Tuesday! Hope you all are excited about earnings season again, as a lot of organizations will have earnings over the next couple of weeks and expect to see significantly more volume and volatility in the markets. Look to capitalize on the opportunities that will be available, but make sure to practice safe risk management in the process of everything. For anyone who is interested in allocating specifically towards an organization FOR earnings, I would recommend sticking primarily to allocating directly into equities to minimize IV crush and risk. Make sure to allocate properly and manage your risk. We had $SPOT, $MMM, $RTX, and more during the pre-market session, and after hours we have some big guys like $MSFT, $GOOG/L, $V, and $CMG.
Good luck trading today, and please just be smart and capitalize on the opportunities available to you.
Thoughts & Comments from 4/24/2023
Yesterday was an incredibly choppy and flat day for the general markets that provided people with an opportunity to realize some gains or get burnt in the process. The overall movement on a day-to-day basis was irrelevant, but anyone could have capitalized on the intraday opportunities.
We started the day with $SPY trading at $411.99, down from the previous close on Friday at $412.20. $SPY moved up for the first hour of the day, where we went on to make the official high of the day, with $SPY trading at $413.06. Markets looked relatively confident, but there was not enough liquidity to sustain that move up.
After making the official high of the day, $SPY continually sold off for the next two hours, where we made an official low of the day, trading at $410.60. Thankfully after the lunchtime lull, the markets moved back up accordingly with the addition of volume and liquidity in the markets. Going into power hour, we watched as the markets continued to move up with slight confidence, providing us with an opportunity to make a quick day trade into close before $SPY closed the day officially trading at $412.63, up $0.43 from the previous close, or approximately +0.10%, with a positive intraday movement of +0.16%
It was a flat and choppy day for the markets overall that did provide us all with an opportunity to trade and realize some gains, but it was difficult navigating everything in real time.
The overall movement for the day was relatively insignificant for anyone holding any of the major indexes, but C’est la vie. Yesterday was a wash, but if you were able to capitalize on the opportunities presented to you, then take the win in stride and let’s continue to move forward with life!
Let’s hope today and the rest of the week start providing more momentum in the markets that we can utilize and go from there!
Thoughts & Comments for Today, 4/25/2023
Today should be a more interesting day in comparison to the previous week and a half in the markets. We have not seen much movement in the markets over the previous week or so, resulting in it being relatively difficult to trade as a result of the lack of momentum and volatility. With the earnings season coming up, you can expect to see a significant increase in the momentum in the markets and look to capitalize on the opportunities presented to you with the liquidity in the markets.
I will warn you all just because liquidity is coming back to the markets does not mean it will be easier to realize gains. Expect to see a significant amount of chop and difficulty timing out positions to capitalize on. Your wins should be more significant and larger during this time, but on the other hand, the losses incurred should be increased exponentially. Limit your downside risk by setting stop losses, and please make sure you respect them at this time.
Emotional traders will have an extremely difficult time while attempting to trade right now, so please, if you are an emotional trader, look to minimize emotions when entering into any positions, take profits when they are at the correct time, exit positions when you are happy, and do NOT look to FOMO back into any positions that you do not have confidence in.
This earnings season will be difficult for the majority of individuals as many organizations that you believe will do well will have positive results, but the price of their equity will not reflect that, and the same is said for speculative organizations that should do terribly, and have negative results, but their forward guidance spins things off in a way that gives them a positive outlook, will do well. I would advise everyone to stay away from playing earnings in the short term as these earnings will be extremely difficult to time out, but at the same time, if you are long-holding organizations that you do not anticipate selling anytime soon, you should be fine in the grand scheme of things (Assuming you are invested in a solid organization)
Continue to think about your personal game plan over the next 3-6 months in the general markets. As I have been saying, I am expecting us to have a tougher time when it comes to allocating in the markets in the short term, as the summer will be a difficult time with a lack of momentum and chop, but will provide us with an amazing opportunity to allocate long in the general markets.
Look to slowly hedge your accounts now with longer expiration puts to cover your long equity positions, short some stocks that you believe are overvalued in the short term, and make sure to have cash on hand ready to allocate when given an opportunity to do so.
Please just be smart in the short term, as the majority of retail traders right now will continue to have a difficult time impacting their performance and mindset when it comes to the markets.
Always capitalize on the opportunities presented to us, but do what you can to maximize your returns and minimize your risk.
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 algorithm as it underperformed our fundamental analysis. It was rough day trading with our technical analysis as a result of the market conditions. But I am very happy to see that our fundamental analysis worked out perfectly, as safety stocks were definitely the move and outperformed the choppy conditions of riskier plays. It’s nice that the long-term portfolio worked out as expected, but it sucks to see that we were not able to fully capitalize on the success of the portfolio. Oh well, we move on with confidence and call it a day.
To get an in-depth analysis of our algorithms' performance, check out Asher’s Report!
The results of yesterday are as followed:
Baseline:
$SPY: +0.16%
Our Results:
Long-Term Portfolio: +0.46%
Base Algorithm: +0.12%
Variable Market Neutral: +0.06%
Variable Sector Neutral: +0.05%
Market Neutral: +0.02%
Sector Neutral: -0.18%
The list of allocations is more narrow today, resulting in larger allocations to higher-risk organizations. I would recommend caution prior to allocating too heavily into $NVDA today as we saw that the long-term portfolio outperformed the algorithm by 3x yesterday. The signal is valid from a technical analysis standpoint, and I am confident in the system, I just personally lack confidence in the markets themselves. So do what you can do to limit general exposure and risk, but look to capitalize on the opportunities when presented. Make sure to practice safe risk management and allocate properly when given an opportunity to do so. Set stops in guaranteed profit and move on with your win!
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 4/25/2023
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 4/25/2023
S&P Case-Shiller home price index (20 cities) - 9 AM ET
FHFA home price index - 9 AM ET
New home sales - 10 AM ET
Consumer confidence - 10 AM ET
Notable Earnings for 4/25/2023
Pre-Market Earnings:
3M Company (MMM)
Spotify (SPOT)
NextEra Energy (NEE)
United Parcel Services (UPS)
Raytheon Technologies (RTX)
Centene Corp (CNC)
Dow Chemical (DOW)
Fiserv Inc (FISV)
McDonalds (MCD)
PepsiCo (PEP)
After-Market Earnings:
Microsoft (MSFT)
Alphabet (GOOGL)
Visa (V)
Texas Instruments (TXN)
Chubb Limited (CB)
America Movil (AMX)
Chipotle (CMG)
Enphase Energy (ENPH)
CoStar Group (CSGP)
Equity Residential (EQR)
Wrap up
Make sure to practice safe risk management and start allocating more towards safety allocations, cash, and hedging your portfolio accordingly now when you have an opportunity to do so prior to a significant amount of economic news and earnings this week. The summer will be a tough transitional period that will result in people realizing a significant amount of gains and others realizing a significant amount of losses. Do what you can to maximize the return potential, but look to minimize your downside risk when given an opportunity to do so.
Good luck trading, and let’s make some bank!