HaiKhuu Daily Report 5/02/2023
Good morning and happy Tuesday! We do not have much economic news today, so the markets should have lower volatility and momentum across the board, but please prepare, as FOMC is tomorrow and will be a hectic day for the general markets. Make some smart decisions in the meantime and capitalize on the opportunities available to us, as there will be a significant amount of volatility in the markets, impacting people’s performance over the next couple of weeks. It would not surprise me to see traders who are not prepared for the transition into the summer session leave the markets in the short term, if not permanently, as a result of this shift in momentum.
Everyone is a good trader when the markets are optimal. It’s a different story when the market conditions are rough, and the only ones who last are the individuals who have a strong mindset or have already experienced some downside.
For any individuals that have a rough time over the next couple of months, power through it. You’ll be fine. For anyone who’s been on the ship of rough market conditions, buckle up because we are going to have some fun!
Good luck trading today, good luck trading this week, and good luck trading for the next couple of months.
Some of us will need luck, and others will be determined to do great things.
Do great things, and don’t let luck be the determining factor of your success.
Thoughts & Comments from 5/01/2023
Yesterday was an interesting yet unproductive day for the general markets. $SPY moved a fraction of a percent which left a lot of traders kind of dumbfounded on what to do to actively navigate the markets.
$SPY opened the day up, trading at $415.38, down from the previous close on Friday at $415.93, leaving us room for movement over the course of the day. The markets moved up and chopped around before hitting its first resistance at $417 and coming down accordingly. The markets bounced back after getting back to the open price and watched as $SPY continued to climb up during the lunchtime session, making an official high of the day trading at $417.61. It was nice watching that movement up as it was slow but consistent throughout the entire day, but difficult watching the back half of the day as there was a lack of momentum in the markets, which lead us to unfortunately come down with relative ease.
After hitting the high, we watched as the markets did not move for almost two hours which was unfortunate, but we had to watch for either the breakout or breakdown at the $417 level, where we either move up accordingly or come down to reality. The latter happened, where $SPY did continue to slowly sell off into close, where there were no good opportunities to trade and watched as the markets sell off.
Going into power hour, $SPY was flat for the day, not providing us with any confidence in the grand scheme of things. We closed the day with $SPY trading at $415.51, down −0.42 from the previous close, or down approximately 0.10%, with an intraday bullish movement of 0.01%.
It was a tough day to actively trade with not many good opportunities to trade, the majority of individuals should have had a difficult time finding a trade, so if you were able to capitalize on the momentum of yesterday. Give yourself a pat on the back as you were able to do what the majority of individuals were not able to do!
Thoughts & Comments for Today, 5/02/2023
Today should be a more interesting day for the general markets. I do not believe there will be much momentum or volatility in the markets impacting people’s ability to actively trade, but I believe that this will be a great time for any individual who is actively looking to allocate into strong positions, specifically in anticipation of what is going to happen for FOMC.
Be careful if you are looking to actively scalp and day trade, as there will be a lot of chop that will impact your ability to navigate the markets with ease, but there will be many opportunities for quick trades. These trades will not net you any sizable gains, but they will be consistently available throughout the entire day.
Do not let emotions get to you with your positions for the day, as a lot of people will have a relatively more difficult time as a result of the market conditions. Make sure to practice proper risk management and limit your downside risk exposure, and do not let your emotions impact you. Do not FOMO into any opportunities that you’ve missed out on, and do not let a position that moved without you, impact your personal performance.
I am expecting that the majority of individuals are not going to be able to realize any significant gains while actively trading today, while certain individuals who take a higher-risk strategy be provided with an opportunity to either realize some gains or incur a significant amount of losses.
Be smart in the process of trading today, and just again, remember that we have FOMC coming up, that there are going to be preparations for the summer session, and that volume and momentum are going to slow down and dry up here in a little bit.
Continue with the game plan that you’ve created over the previous couple of weeks, and make sure that you are limiting your general exposure in the markets. I will continue to advise taking on proper risk management at this time via allocating more towards cash, selling positions you are not comfortable holding, and hedging your account accordingly to decrease your downside risk potential.
Lots of people are going to have a difficult time in the markets over the next couple of weeks. Do what you can to decrease the potential for that happening, and make sure that you have conviction on any and every position you’d make throughout the next couple of months.
Hold some strong equity plays, hold some cash, and prepare to allocate that capital accordingly towards the middle of the summer. Stay away from speculative plays and only take risks with a small sum of capital if you are looking to allocate accordingly.
If you want to watch any of my allocations, they will be posted live in the HaiKhuu Discord.
HaiKhuu Proprietary Algorithm Report:
Well…. unfortunate news about yesterday. $SPY barely moved yesterday and was up only 0.01% over the course of the day. It was a rough time for the general markets, with a significant amount of movement but a lack of general direction over the course of the day. Despite this, we absolutely decimated the market and its results.
Every single one of our systems outperformed the markets by a large margin, and the base algorithm absolutely decimated the markets. I am very happy to report the results of yesterday as it looks like our systems are continually working out in our favor, and am excited to see what happens over the next couple of weeks.
To get an in-depth analysis of our algorithms' performance, check out Asher’s Report!
The results of yesterday are as followed:
Baseline:
$SPY: +0.01%
Our Results:
Base Algorithm: +1.12%
Variable Market Neutral: +1.03%
Market Neutral: +0.92%
Variable Sector Neutral: +0.55%
Sector Neutral: +0.43%
Long Term Portfolio: +0.35%
With the current condition in the markets, I would continue to advise relative caution when entering and allocating to any of these positions. Please make sure to practice safe risk management and limit the amount of downside risk exposure you take when entering into any of these positions. Do your own due diligence prior to entry and assure that you are only allocating into positions you have confidence in. The two largest allocations we have for the day are $NVDA and $META, both of which are above a 10% allocation. Make sure to set a stop loss to limit the risks you take and continually move that stop up over the course of the day to secure more profits.
Take profits when you are happy and move on with your life when given a chance to!
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 5/02/2023
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 5/02/2023
U.S. job openings - 10 AM ET
Factory orders - 10 AM ET
Notable Earnings for 5/02/2023
Pre-Market Earnings:
ADT Corporation (ADT)
AerCap Holdings NV (AER)
AGCO Corp (AGCO)
AmerisourceBergen (ABC)
BP plc (BP)
Broadridge Financial (BR)
Cheniere Energy (LNG)
Ecolab (ECL)
Enterprise Products (EPD)
Pfizer (PFE)
After-Market Earnings:
Advanced Micro Devices (AMD)
Starbucks Corporation (SBUX)
Ford Motor Company (F)
Energy Transfer (ET)
Simon Property Group (SPG)
Prudential Financial (PRU)
ONEOK (OKE)
Franco-Nevada (FNV)
Yum China Holdings (YUMC)
Clorox Company (CLX)
Wrap up
Please just prepare for what should be an extremely interesting time in the markets over the next couple of days. Practice safe risk management, do what you can to limit your downside risk, increase your profit potential and continue to hold cash accordingly. Lots of people will do phenomenally today, and lots of people will have a tough time as a result of market conditions. Have some fun in the process of everything and as always, realize gains when given an opportunity to do so!
Good luck trading, and let’s make the most out of today!