HaiKhuu Daily Report 5/03/2023
Good morning and happy Wednesday! We are back into the upper end of neutral on the fear and greed index while the markets are slightly green at the moment, so this should be an extremely interesting time for the general markets. Please be smart and capitalize on the opportunities that are available to us at the moment, but please make sure to practice risk management to protect your downside during this time. Historically, this is a red day for the general markets. Obviously, this sentiment takes into account a lot of historical data, and in real-time, there is a lot to consider when it comes to the movement of today. We have FOMC later today with comments from Jerome Powell at 2 pm and 2:30 pm EST, respectively. So there is going to be a significant amount of movement, mostly around that time, that will impact the performance of the markets.
Please just be smart and follow the momentum in the markets today, do not get greedy and take the consistent wins over time.
Thoughts & Comments from 5/02/2023
Yesterday was an extremely tough day for the markets, with many opportunities to trade. From the open, we saw a significant amount of bearish momentum that impacted the markets extremely heavily. $SPY opened the day trading at $414.78, quickly moved up to $414.82 and never looked back.
We sold off the first two hours of the day consistently, with no end in sight, providing us with a significant amount of fear in the general markets. There was no bounce or recovery during that time, only straight blood. The markets did finally hit a bottom where during the beginning of the lunchtime session, we saw a reversal from the bottom, only after $SPY made an official low trading at $407.82. It was a difficult time for the general markets but provided us with an amazing opportunity to go long at the bottom.
From the bottom, we watched as $SPY continued to slowly move up into close and, respecting the $410 support/resistance level and move up slightly into close. The momentum from the bottom was not significant, but it provided us with enough opportunity to load up at a phenomenal price and get a bullish day trade with relative confidence. $SPY moved up unto close, where we officially closed the day trading at $410.84, down $4.67 for the day, or approximately 1.12% from the previous close, with an intraday bearish movement of -0.94%.
As I said before, there were many great opportunities to trade and capitalize on as the day was extremely momentum based.
Shorts would have killed it from open, where throughout the day, you would have been extremely profitable, but if you covered at the bottom, you’d be up 1.5% on the position, just from open. And the inverse happened too, where if you decided to go long from the relative bottom, you would have been able to capitalize on the bullish movement up.
It was a rough day for the general markets but a phenomenal day if you prepared accordingly with some hedges, capitalized on the momentum, and realized some gains. Great job to anyone who has been following our trading strategy over the previous couple of weeks, and I hope you all benefited heavily from being able to ride the wave of yesterday without incurring any losses at all!
Thoughts & Comments for Today, 5/03/2023
Today will be an extremely interesting day for the markets with a significant amount of momentum, a lack of general momentum, and then an amazing opportunity to actively trade and scalp.
Before I go into anything, I just want to warn you all now to be extremely careful while attempting to trade today. Lots of people are going to have a difficult time actively trading, and I would not recommend the majority of inexperienced traders attempt to trade. Please, Please, Please be extremely careful and capitalize on any and all of the opportunities available to you, but know when to stop trading.
Today should be fun as a result of economic news, as well as Jerome Powell speaking. During the pre-market session and around open, there is some economic news, but that news itself will not impact the markets as heavily as 2 pm EST will. The news early in the day will impact the market sentiment and momentum but will not provide the same significant movement as Jerome Powell will towards the end of the day.
Look to capitalize on any and all of the opportunities that are presented to you in the short term, but understand the risks that are involved in allocating to the markets at the wrong time.
I expect to see a lot of volume around open with a significant amount of chop for the first hour or so of the day before seeing a steep drop off in volume around 10-10:30 am EST, resulting in the markets coming down accordingly, to hit a relative bottom around the lunchtime lull.
I would recommend that the majority of traders stop actively trading around 10:30 am EST. Typically, the markets will be extremely momentum-based at that time, going into the lunchtime lull, where we continue to slowly move up or come down as a result of a lack of volume in the markets. I personally expect to see us come down during that time, providing a slow unforgiving death to the traders who are over-trading and an amazing opportunity to allocate prior to 2 pm EST.
If the markets come down significantly at that time, look to allocate towards the back half of the lunchtime lull directly into shares of the indexes or equity you feel the most comfortable and confident in.
Leading into 2 pm EST, I would not recommend that the majority of traders hold any equity at all as no one knows exactly what will happen with the market movement, but we do know that there will be a significant amount of movement that will make a lot of traders a significant amount of money, and know that a lot of traders will have an exceptionally difficult time attempting to capitalize on the moment against them.
We will see some extremely sharp movements in both $SPY and any equity position you will be watching at that time, leading up to JP speaking at 2:30 pm EST. With JP speaking, I personally do expect to see some bullish momentum at that time as a result of what is going on, but knowing to tread extremely lightly at that time as lots of individuals will be making some bank, and lots of traders are going to have a difficult time.
Realistically, be careful about after JP speaks, we will see a significant amount of movement in the general markets as a result of that, but tread extremely lightly. We’ve seen the markets pump on JP speaking, reaching new relative highs, to watch the markets sell off significantly afterward; as a result, negatively impacting anyone holding equities and heavily impacting those who have option contracts as volatility takes a nose dive afterward.
Please just be extremely careful when attempting to trade today. Lots of individuals will make a significant amount of realized gains with relative ease today, and even more, individuals will get burnt in the process of everything.
Practice safe risk management. Limit your downside risk exposure. Be diligent with your allocations, and do not let your emotions impact your decision-making. Lots of people will make some great trades, lots of people will make some smart plays, but get out early. Let your runners run and be happy, realizing gains when given an opportunity to do so. If your position moves without you being in, do not let it bother you. It will suck in the short term knowing that the position did move without you, but c’est la vie. It happens to the best of traders, and it will happen to the worst of traders.
Realize some gains while trading today and be happy knowing that you make a nice lil stack of cash.
Good luck trading today because we will need a little bit of luck and a lot of skill to navigate today with ease.
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 rough day for both the markets and the algorithms. With the significant amount of bearish momentum, it was difficult for any buy-at-open, sell-by-close strategy to work out. All of the neutral strategies outperformed the markets, our technical analysis underperformed the markets, and the base algorithm was beaten by both the fundamental analysis and the general markets. C’est la vie, it was a tough time to allocate directly into the markets, so there is unfortunately not much that we can do as a result of this. We move on with life, and am excited to see what happens over the next couple of days in the market.
To get an in-depth analysis of our algorithms' performance, check out Asher’s Report!
The results of yesterday are as followed:
Baseline:
$SPY: -0.94%
Our Results:
Sector Neutral: -0.35%
Market Neutral: -0.39%
Variable Sector Neutral: -0.5%
Variable Market Neutral: -0.72%
Long Term Portfolio: -0.96%
Base Algorithm: -1.11%
I would advise relative caution in regards to buying and holding any of these allocations throughout the entirety of the day as a result of the economic news that is coming out at 2 pm EST. If you are entering into any of these positions, I would highly advise that you take advantage of the opportunities presented to you within the first hour of the day, realizing some gains and moving on with your life, as there will be a significant amount of risk holding these positions going into 2 pm EST that we have not taken into account prior to making these recommendations for the day.
Set a stop in guaranteed profits when given an opportunity to do so throughout the morning, and realize gains when you can. Do not wait to watch the shift in momentum to have you stopped out at break even or a loss. Take advantage of the opportunities available to you and move on with your life, knowing you are not taking on any additional risk going into FOMC.
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 5/03/2023
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 5/03/2023
ADP employment - 8:15 AM ET
S&P U.S. services PMI - 9:45 AM ET
ISM services - 10 AM ET
Federal Reserve interest-rate statement - 2 PM ET
Fed Chair Powell press conference - 2:30 PM ET
Notable Earnings for 5/03/2023
Pre-Market Earnings:
Adient plc (ADNT)
Barrick Gold Corp (GOLD)
Bunge Ltd (BG)
Yum! Brands (YUM)
Brinker International (EAT)
CVS Health (CVS)
Estee Lauder (EL)
Stellantis (STLA)
Kraft Heinz (KHC)
Phillips 66 (PSX)
After-Market Earnings:
Qualcomm (QCOM)
Equinix (EQIX)
MercadoLibre (MELI)
Public Storage (PSA)
Corteva (CTVA)
Realty Income (O)
Williams Companies (WMB)
Allstate Corporation (ALL)
Eversource Energy (ES)
HubSpot (HUBS)
Wrap up
Overall, please be careful while attempting to trade today. It will be extremely difficult attempting to find positions to capitalize on in real-time, but in reality, there will be a lot of opportunities that will be available that will be easily spotted when looking back at today. Do not catch any falling knives, and do not FOMO in at the top. If you are trading, watch for a reversal in the markets to capitalize on and do what you can to realize some gains in the short term. Be cautious trading around 2-2:30 pm EST, but do what you can do to make the most out of any opportunities presented to you
Good luck trading, and let’s hope that Jerome Powell pumps the markets.