HaiKhuu Daily Report 5/04/2023
Good morning and happy Thursday! Hope you all are doing alright after the fact that Jerome Powell went to go for the kill shot yesterday. Markets are looking great in the grand scheme of things but expect some short-term turbulence. We’ve been talking about this over the previous couple of weeks, and it looks like this is just part of the chain that we knew was coming up but did not want to happen.
It will be interesting to see how the markets react over the next couple of days, but please be careful and cautious at this point. We are either going back and testing $400 on $SPY within the next couple of days or are going to magnet back to $410 on $SPY.
Ideally, we magnet back to $410 quickly and move up to $420+ within a short timeframe, but with the current market conditions not being optimal, please hope for the best but prepare for the worst.
The summer session is slowly starting, expect to see some more chop over the next couple of weeks in the markets to end the month, followed by a low momentum, low volume summer. There is a chance that this summer does provide us with some amazing bullish momentum, and I am not discounting the idea, it is just really a difficult time to predict a movement like that while the market conditions are not optimal.
Please continue to be careful when attempting to trade today and in the near future, and do what you can to capitalize on the momentum and opportunities that are available to us over the next couple of months.
Thoughts & Comments from 5/03/2023
Yesterday was a tough day for the general markets as a result of economic news and Jerome Powell speaking. The Fed raised interest rates by 0.25%, and interest rates are now at 5.25%. The markets were rather slow but extremely predictable until the point of JP speaking, where he caused some bearish momentum.
We started the day pretty strong, where $SPY opened the day trading at $411.35 and showed relative confidence right out the gate as $SPY moved up to make the first high of the day trading just above $412. It showed relative strength in the markets and showed people were excitedly waiting for JP to speak. After the initial movement up, we watched as there was a shift in momentum in the markets, causing us to come down into the lunchtime lull, providing us with a solid opportunity to short on the way down with confidence and allocate at the bottom with strength.
Once we bounced, we moved up from after the lunchtime lull all the way to 2 pm EST, where the markets continued to move up and showed confidence in the financial system. It was choppy between 2-2:30 EST, but we made a high of the day with $SPY trading at $413.87 before the sudden and quick sell-off in the markets.
As Jerome Powell was speaking, we watched as the markets continually came down, displaying weakness in the markets. Going into close, $SPY broke $410 with relative ease, tested it once, and continued to sell off for the rest of the day.
We ended the day with $SPY making an official low trading at $407.78 and closing the day at $408.02, down $2.82 for the day, or approximately 0.69%, with an intraday bearish movement of -0.81%.
The movement down in the short term was significant as $SPY dropped over 1% in a matter of an hour, but in the grand scheme of things, is not that significant of a movement. The long-term impact of this movement is impacting the sentiment of the current market conditions providing us with an opportunity to allocate into the markets while conditions are not optimal.
Please be careful allocating into the markets over the next couple of weeks, but look to capitalize on all of the opportunities presented to us.
Thoughts & Comments for Today, 5/04/2023
Today should be an interesting day as a result of the impact on the markets yesterday. As I said before, I personally do expect to see $SPY either come down to $400 over the next couple of days or magnet back to $410. Which direction we are going? I don’t truthfully know. I want to see us move up accordingly, but your guess is as good as mine is. There is a lack of confidence in the markets at the moment, but we have Apple earnings after hours today, which will provide us with an opportunity to bring more confidence back into the markets in the short term or seal our fate with $SPY coming back down to $400.
Throughout trading today, do what you can to limit the amount of risk that you are taking, as I am expecting a significant amount of chop, making it extremely difficult for the majority of traders to capitalize on the momentum in the markets and consistently realize gains as a result.
Some traders who are consistent in the markets will do fine today, but the majority of traders will have a difficult time.
I would highly recommend you look into opportunities that are available to us right now to sell some highly out of the money, 1 DTE CSPs in preparation for tomorrow. VIX is relatively high at the moment, while equities are at a relative low. This would be a great opportunity to capitalize on the situation in the markets and make the most out of the opportunities available to us. We won’t make a significant amount of money as a result of this, but it will be a free win going into the weekend. I personally will be looking to sell some CSPs on organizations like $AMD to capitalize on this momentum.
If you are still in puts as a result of us screaming to hedge, look to start taking profit on some of those puts at this time. Equities have moved enough that you should be up a sizable amount on those puts and be provided with an opportunity to realize some gains. Look to utilize the gains from those hedges to hold cash, as cash is still a position, and wait to see what happens over the next couple of weeks in the markets. Hopefully, things do only continue to come up, but the realist in me knows that cash on the side will be a great hold in these conditions. Markets can continue to come down over the next couple of weeks, providing us with a solid opportunity to allocate into the markets with confidence and allowing us an opportunity to realize some gains with ease, again, assuming that you are able to allocate at the relative bottom and be patient and watch for a sign of reversal.
Continue to practice safe risk management, limiting your downside risk and capitalizing on the opportunities that are presented to you.
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 markets and it reflected on our algorithm’s performance, but I am very happy to say that every one of our systems beat the markets by a slight margin and watched as our technical analysis out performed both the general markets as well as our fundamental analysis. It was a tough day but due to proper allocations, we were at least able to minimize the general risks that were involved from having exposure. Tough day, but at least we were able to make the most out of the situation!
To get an in-depth analysis of our algorithms' performance, check out Asher’s Report!
The results of yesterday are as followed:
Baseline:
$SPY: -0.81%
Our Results:
Market Neutral: +0.15%
Sector Neutral: +0.01%
Variable Market Neutral: -0.21%
Variable Sector Neutral: -0.25%
Base Algorithm: -0.5%
Long Term Portfolio: -0.77%
With the current situation in the markets, I would advise relative caution when actively allocating into the current marketplace for safety. All of these alerts are valid from a technical analysis standpoint, but I am not confident in the current market conditions. I am sure there will be opportunities to allocate accordingly, but it is more of a matter of if the allocations are able to be consistently profitable today across the board.
I believe there is a good chance we do fine, and there is nothing to worry about, but at the same time, please just make sure to practice safe risk management in the process of everything to limit the amount of downside exposure that you have in these market conditions.
Make sure to set stop losses and limit the amount of general exposure you are taking in the markets at this point.
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 5/04/2023
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 , $AAPL , $TSLA , $GOOGL, $NVDA
Free Equity List:
Safe - $SPY
Risky - $RIVN
Position Opportunities:
Hedge 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
Cut all positions you are not comfortable holding
LONG OPPORTUNITIES:
Long-Term Dividend - $GAIN
Long-Term Riskier EV Play - $RIVN
Economic News for 5/04/2023
U.S. productivity - 8:30 AM ET
U.S. trade deficit - 8:30 AM ET
Initial jobless claims - 8:30 AM ET
Continuing jobless claims - 8:30 AM ET
Notable Earnings for 5/04/2023
Pre-Market Earnings:
Royal Dutch Shell PLC (SHEL)
Anheuser-Busch (BUD)
ConocoPhillips (COP)
Regeneron (REGN)
Zoetis (ZTS)
Datadog (DDOG)
International Exchange (ICE)
Moderna (MRNA)
Ferrari (RACE)
Kellogg Company (K)
Shopify (SHOP)
After-Market Earnings:
Apple (AAPL)
Booking Holdings (BKNG)
EOG Resources (EOG)
Fortinet (FTNT)
American International Group (AIG)
Atlassian (TEAM)
Block (SQ)
DoorDash (DASH)
Motorola (MSI)
Wrap up
Overall, just be safe while actively attempting to scalp and trade today. Practice safe risk management and assure that you are limiting exposure where possible. I expect to see opportunities to capitalize on bullish momentum soon, but at the same time, I also expect to see a significant amount of chop impacting people’s ability to consistently be profitable. Do what you can to maximize the returns you are generating in these market conditions, but be nimble, sell when you are happy, and limit your downside risk potential where you can.
Good luck trading, and let’s make the most out of these opportunities.