HaiKhuu Daily Report 5/08/2023
Good morning and happy Monday! Hope you all had a great weekend and are ready for what should be an interesting week in terms of market movement, earnings, and economic news. There will be a lot of volume and momentum in the markets as a result of general news in regards to the economy, skepticism in cryptocurrency, and fears easing in the banking sector. As always, I am going to advise relative caution when attempting to navigate these market conditions, but I will continue to say to attempt to capitalize on the momentum in the markets while it is available. There will be some solid opportunities to realize a significant amount of gains with relative ease. So just be smart and do what you can to maximize your profit potential.
Be smart this week, be safe this week, but do what you can do to realize as many gains as possible.
Thoughts & Comments from 5/05/2023
Last week was an interesting time for the general markets providing us with many great opportunities to trade in both directions. There were some significant bullish movements in the markets, and there were some significant bearish movements in the markets. Lots of opportunities were available to capitalize on both directions, and I hope you all were able to realize some gains.
The week started off strong, with $SPY opening the week trading at $415.46, with confidence in the markets as a result of people being hyped in anticipation of Jerome Powell speaking and providing us with confidence in the greater markets. We went on to make a relative high of the week, trading around $417, and showed relative strength. It was a great time for people to go long until it wasn’t.
We quickly went from $417 on Monday to selling off significantly throughout the rest of the week. We came down and broke $410 on Tuesday before closing the day with confidence above $410, to watching the markets move up in anticipation of Jerome Powell speaking on Wednesday, resulting in us continuing the sell-off and making relative lows on Thursday. We tested and broke below $405 on Thursday, showing that people were not confident in the markets, but despite this, provided us all with a great opportunity to capitalize on the weakness on Friday.
On Friday, we saw a significant amount of bullish momentum in the markets that provided us all with a great opportunity to trade and realize a significant amount of gains. After closing on Thursday at $405, we opened Friday with the markets trading at $408.89, up significantly from close, and watched as $SPY continually slow grind up for the majority of the day, breaking above $410 within the first half hour, and continuing to move up throughout the entire day.
We made an official high of the day with $SPY trading at $413.71 and providing us with an amazing opportunity to realize a significant amount of gains in the process. We did come down during power hour as the momentum in the markets slowed down, but we still ended the week with $SPY trading at $412.63, up $7.50 from the close on Thursday, or up approximately 1.85%, with an intraday bullish movement of 0.89%.
It was an amazing day for the general markets that provided us with many great opportunities to trade and realize some gains, but now it is a matter of if this momentum is able to last and continue in the meantime.
Thoughts & Comments for Today, 5/08/2023
Today should be a fun day for the general markets as a result of the positive bullish momentum that is currently in the system. As always, I would advise relative caution, as safety should be our number one priority. There will be many opportunities to trade throughout the entire day, but it is just a matter of if you are able to maximize your profit potential.
Someone who takes 10x trades but loses 4 of them, and nets a minimal return, will be outperformed by someone who simply takes one single position and is able to allocate with confidence with a day trade. The quantity of trades does not matter at the end of the day, the only thing that matters is simply how your returns are. Increasing the number of trades may feel like you have more control, but it provides significantly more stress and an inability to navigate the markets with confidence.
I am not discouraging scalp traders, as there will be many many great opportunities to scalp trade in these market conditions, but the optimal way I would recommend trading is by looking to allocate into a simple day trade when you have confidence in the markets and utilize a confirmation of a reversal to get an optimal trade.
Scalp when there is an opportunity, but look to gather larger movements in the markets during this time to continually increase your profitability.
Many people will unfortunately not do well over the course of the next couple of weeks as we see momentum and volume slow down, which is a reason why I bring up day trading versus scalping. Scalping is fun, but you need solid momentum and volume in the markets to consistently scalp.
Going into the summer session, there will be a decrease in momentum in the markets and volume, impacting people’s ability to scalp.
Continue to hold cash when given an opportunity to do so, and wait for a solid opportunity to hedge your position when equities come back up, and VIX decreases. Capitalize on any and all of the opportunities that are available in the short term.
Consistency is key to performance in these market conditions, so look for the consistent opportunities that are available in these market conditions rather than looking to allocate into high-risk speculative plays that you do not have conviction in.
Make smart plays while market conditions are optimal for trades in the short term, and continue to make a solid game plan for how you plan on trading during the summer session. Cash will be king and will provide you an opportunity to allocate into strong equities while there is weakness in the markets.
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 with a significant amount of bearish momentum that was difficult to capitalize on. Despite this sentiment in the markets, we were able to consistently beat the markets with all of our current strategies. Two of our neutral strategies provided positive returns, while the rest of the strategies, despite being out, continued to outperform the markets by a large margin.
It was a great week for our technical analysis as we consistently beat out the markets and our fundamental analysis. I am very happy to say that despite a rougher week for the markets, our technical analysis beat $SPY by a solid 118 bps. Let’s see if the markets continue to move in the fashion that it is, and do what we can to continue to increase its profitability over the course of time.
To get an in-depth analysis of our algorithms' performance, check out Asher’s Report!
The results of last week are as followed:
Baseline:
$SPY: -1.29%
Our Results:
Market Neutral: +0.65%
Variable Market Neutral: +0.2%
Base Algorithm: -0.11%
Variable Sector Neutral: -0.29%
Sector Neutral: -0.32%
Long-Term Portfolio: -0.95%
With the current conditions in the markets, I would advise relative caution prior to entering into any position blindly, but I would look to capitalize on the opportunities that are available to you. There will be many opportunities to actively day trade with relative ease, it is just a matter of finding the right allocations and capitalizing on them properly. Please do your own due diligence prior to entering into any of these positions, but many of them will do exceptionally today. So look for the right trade, scale into it accordingly, and take your profits when possible.
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 5/08/2023
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, $JPM , $AAPL , $MSFT , $NVDA , $GOOGL
Position Opportunities:
Hedge the 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 5/08/2023
Wholesale inventories - 10 AM ET
Chicago Fed President Goolsbee television interview - 11 AM ET
Fed Senior Loan Survey - 2 PM ET
Notable Earnings for 5/08/2023
Pre-Market Earnings:
KKR & Co. Inc (KKR)
BioNTech SE (BNTX)
Tyson Foods Inc (TSN)
Viatris Inc (VTRS)
DISH Network (DISH)
Freshpet (FRPT)
Treehouse Foods (THS)
Axsome Therapeutics (AXSM)
Six Flags (SIX)
Energizer (ENR)
After-Market Earnings:
PayPal Holdings (PYPL)
McKesson Corp (MCK)
Suncor Energy (SU)
Devon Energy Corp (DVN)
International Flavors & Fragrances (IFF)
Ventas, Inc (VTR)
Skyworks Solutions (SWKS)
Palantir (PLTR)
Lucid Group (LCID)
Western Digital (WDC)
Wrap up
Please be smart when attempting to enter any positions today, as there will be some underlying risk and fear in the markets, but capitalize on the opportunities that are available, as there is a significant amount of bullish momentum going into open. Do not get greedy and take profits accordingly when available. Decrease risk, and make sure to practice safe risk management by allocating towards safer plays and limiting your risk potential.
Good luck trading, and let’s make the most out of this week!