HaiKhuu Daily Report 5/01/2023
Good morning and happy May! Hope you traders are excited for the new month and all of the opportunities that are available to us! This month will be extremely interesting, headed into people preparing for the summer session. There are going to be many trades that get presented to us while many traders prepare for what should be a rather difficult time for the markets. For those who don’t know, typically, during the summer session, we typically see lower volume and momentum in the general markets, with economic news and events heavily impacting the overall performance. Certain organizations will do extremely well as a result of specific news that positively impacts them, but most organizations assuming they do not have any news that impacts them will follow the direction and momentum of the markets.
Lots of people should do extremely well this month and outperform the markets by a large margin, investors should not see too much movement in their overall portfolio, assuming they are diversified, and traders should have a difficult time.
Please mentally and physically prepare for this shift towards the summer session, and as always, please practice risk management to assure you are limiting your general exposure.
There will be some large earnings this week, so please be on the lookout. Some of the largest ones are
BP
Pfizer
AMD
Starbucks
Ford
Kraft Heinz
Qualcomm
Shell
Moderna
Ferarri
Kellog
Apple
Shopify
AMC
Good luck this month, it should be a fun time with lots of opportunities.
Thoughts & Comments from April
Last month was an interesting month for the general markets, with not much overall movement but many opportunities to realize a significant amount of gains. $SPY gained 1.21% over the course of the month, so if you personally gained more than that, great job, as that means you beat the S&P 500 in terms of performance.
Safety stocks performed very well, with the DOW beating out the returns of the S&P 500, with the DOW being up 1.48%, while the Nasdaq only returned 0.75% over the course of the month.
With the earnings season among us, we watched as there has been some significant movement in many organizations. We watched as $MSFT and $META both hit a new 52-week high and watched a continuation of the hype in AI. Many traders, unfortunately, got nailed FOMOing into those AI plays as $AI the organization fell approximately 50% from the high in the past month, while $TSLA negatively impacted the performance of all EV stocks on the markets.
Over the previous month, $TSLA has dropped approximately 16%, impacting organizations like $RIVN, $NIO, and $FFIE. $RIVN dropped in line with $TSLA being down approximately 16% over the course of last month, $NIO dropping 20%, and $FFIE, the failed SPAC for Faraday Future, dropping approximately 45%, making a new official all-time low. I would be extremely cautious around this sector and not attempt to catch a falling knife. Some of these plays will do phenomenally over the course of time, but in the short term, there is a significant amount of risk involved with attempting to catch a falling knife.
It has been an amazing time for some organizations but a tough time for others. Just please continue practicing safe risk management in the process of everything, and prepare for what should be an interesting time in May.
The summer season is among us, and lots of people will get burnt in the process, so do what you can to capitalize on the opportunities presented to us and have some fun in the process.
Thoughts & Comments for Today, 5/01/2023
Today should be an interesting time for the general markets as people start to reposition themselves for this summer session. Expect to see slower momentum from here until the end of the month, with lower volume and liquidity. The majority of traders will have a difficult time capitalizing on this momentum, so if you do not do well over the next couple of weeks. Do not feel bad, as the majority of individuals will be in the same boat as you.
In my honest opinion, the majority of retail traders, between now and the middle of the summer, should hold solid equity positions, hedge those said positions, and have cash ready to purchase over the course of the next couple of months.
This will be a great opportunity to sit back, relax, and look for opportunities to allocate toward what people will believe is the bottom in the markets. I personally will be allocating heavily into cash over the next couple of weeks while holding positions that I do not anticipate selling anytime soon, hedging my account with $SPY puts, and will be looking for opportunities to allocate into strong equity positions while people are generally fearful.
We still are in greed on the fear and greed index, providing us with an opportunity to capitalize on the momentum in the markets, but will realistically be a reason for a short-term fall in the markets. I do not believe that this sentiment is enough to justify the movement we’ve had in the markets over the previous couple of weeks, providing us with an opportunity to play towards the downside in the short term and provide us a future opportunity to allocate during a fear state allowing us to realize some significant gains during that time.
Please just continue to practice safe risk management in the short term. Follow the momentum in the markets, look to realize gains when given an opportunity to do so, and capitalize on the opportunities available with a significant amount of major earnings happening over the next couple of weeks.
Just continue to limit your downside risk potential during this time going into the summer, as you do not want to be heavily allocated and taking on too much risk in the process of everything.
If you want to watch any of my allocations, they will be posted live in the HaiKhuu Discord.
HaiKhuu Proprietary Algorithm Report:
Last week was an interesting week for the overall markets, and I am happy to say that the intraday movement of the algorithm and the base long-term portfolio both outperformed the markets. We are very excited about these results and are excited to see the progress moving on into the future. Friday itself was not the best performance generated, but over the course of the entire week, we are very happy to see the success of the system. Lots of upgrades will be coming soon, and we will continue to provide you with the best results possible!
We highly recommend for a more in-depth analysis of our weekly performance, check out Asher’s Report!
The results of yesterday are as followed:
Baseline:
$SPY: +0.87%
Our Results:
Long Term Portfolio: +1.11%
Base Algorithm: +0.91%
Variable Market Neutral: +0.61%
Market Neutral: +0.25%
Variable Sector Neutral: +0.14%
Sector Neutral: -0.47%
We will continue to advise relative caution in regards to allocating heavily into $NVDA specifically. These positions are valid from a technical analysis standpoint, providing us all with a phenomenal opportunity to realize gains with relative ease, it is just more of a matter of assuring that you are allocating into the proper locations and practicing safe risk management. Always do your own due diligence prior to entering into any of these positions, and make sure that you are setting stops to limit your downside risk potential. Lots of these organizations should do well today, it is more of a matter of if you are able to capitalize on the opportunities.
Please be safe while attempting to allocate into any of these positions, and as always, realize gains when you are happy!
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 5/01/2023
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 5/01/2023
S&P U.S. manufacturing PMI - 9:45 AM ET
ISM manufacturing - 10 AM ET
Construction spending - 10 AM ET
Notable Earnings for 5/01/2023
Pre-Market Earnings:
CNA Financial Corp (CNA)
Franklin Resources (BEN)
Global Payment (GPN)
KBR Inc (KBR)
Norwegian Cruise Line (NCLH)
Onsemi (ON)
WEC Energy Group (WEC)
Check Point Software Technologies (CHKP)
Loews Corporation (L)
SoFi Technologies (SOFI)
After-Market Earnings:
Stryker Corp (SYK)
Vertex Pharma (VRTX)
Arista Networks (ANET)
NXP Semiconductors (NXPI)
VICI Properties (VICI)
SBA Communications Corp (SBAC)
Diamondback Energy (FANG)
MGM Resorts International (MGM),
Invitation Homes (INVH)
Hologic (HOLX)
Wrap up
Please be smart and prepare accordingly for this summer session. We should see a general lack of volatility in the upcoming months that will make it difficult for the majority of traders to realize gains with ease heavily impacting their performance across the board. Make sure to hedge you account, sell positions you do not have confidence in and continue to hoard cash, as a lot of people will have their cashflow impacted this summer resulting in them having to sell off equities. We are going to have an amazing opportunity to load up on equities here over the next couple of months, so be patient and scale into your positions slowly.
Good luck trading this month and continue to kill it!