HaiKhuu Daily Report 5/10/2023
Good morning and happy Wednesday! Hope you all are hyped for what should be a pretty solid day for the markets. For anyone who rode $RIVN with me yesterday, great play, I hope you all are able to realize a significant amount of gains with me today. For anyone else, welp. I’ll go over my exit plan later in this report.
Market conditions are not the best looking at the moment, with $SPY actively hovering at this $410 level. There is a good chance we come down and chop around the $410 level specifically or have another relatively low volume day that impacts people’s performance in the markets and their ability to actively scalp. We do have CPI coming out during the pre-market session, so watch for a possible shift in momentum in the markets and watch the momentum into market open.
Please continue to be smart, practice safe risk management, and limit your downside risk potential. Realize some gains when you can, and do not get greedy.
Bulls will make money in the short term, bears will make money in the short term, but pigs will get slaughtered.
Thoughts & Comments from 5/09/2023
Yesterday was a very tight day for the general markets, with not many opportunities to actively scalp, but was a great day for anyone who was looking to take advantage of the momentum in the markets. There was not much movement in the overall markets, with $SPY moving a total of -0.03% intraday. There was a significant amount of opportunities to trade if you followed the momentum.
Some of the most significant movements yesterday were $PYPL dropping about 13% as a result of terrible earnings and $RIVN moving up 5% intraday as people were preparing for earnings.
$SPY opened the day trading at $411.09, down from the previous close of $412.74, showing that there was going to be a lack of general confidence in the market, as well as general momentum.
We chopped around for the large majority of the day, trading in a very tight range that did not provide us with many opportunities to make any positions with confidence. We ended the day with $SPY trading at $410.93, with the range of the day being $1.30 from top to bottom. This lack of momentum is just the start of people preparing for the summer session in the markets.
Please continue to be safe and careful trading over the next couple of weeks as this shift in momentum happens in the markets resulting in many traders having difficulties navigating and realizing gains in the process.
I will continue to recommend holding cash, strong equities, hedges, and following the momentum if you are looking to trade. Stay away from speculative plays, and be smart in the process of everything.
Thoughts & Comments for Today, 5/10/2023
Today should be an interesting day as a result of CPI data coming out during the pre-market session. Please be careful attempting to enter into any trades right now and only enter into positions once you have confidence and follow the momentum in the markets. I will continue to warn you all about this $410 level on $SPY, as there is a very good chance that we just continue to hover in this area and shake out a lot of weak hands in the short term as a result of a lack of momentum.
It would not surprise me to see another minimal movement day in the general markets, but with economic news coming out prior to markets opening, that should drive some sentiment into the markets, and hopefully, we do watch for a break out here.
If you are looking to scalp in these market conditions, as I’ve been saying. Follow the momentum and be smart with any and all of the allocations you decide on taking today. There will be many positions you can enter today, it is just a matter of timing and assuring that you can enter into the position with relative confidence.
One play I am looking to get into is entering into a highly OTM $ABNB CSPs, it is just dependent on how the premium is looking for this Friday. They dropped 15% as a result of earnings, and I believe they will continue to come down intraday. I will look to sell at or below $100 once I note that the momentum slows down.
The big play I will be looking to navigate through today is exiting my personal $RIVN allocation. I have shares, leaps, and options that I will need to manage in the short term. My plans for the positions I have at the moment are to sell my ATM options for as much as I can get, look to slowly exit my $12.50 leaps, and look to sell ITM-covered calls on the rest of the equity. $RIVN is still below my current average, but if I am able to capitalize on the volatility and option premium, selling ITM calls should be able to get me to a point where I should be at or above my average, returning a significant amount of liquidity to my active trading.
Depending on the premium that is offered for this Friday and next Friday (Monthly Exp), I will most likely be selling $12 ITM calls on $RIVN, assuming they are providing around $4~ in premium. Ideally, there is more premium in some contracts, but we will see what happens in real time at open.
I do believe $RIVN should move up today, but I want to make sure to secure as much potential as possible by scaling into this position accordingly. I will be selling 25% lots of my total position as I scale out, attempting to hold 500-1000 shares of $RIVN for the long term.
This has been a fun ride watching this organization move, but it will be an even better feeling being able to get out of the position with relative ease after holding it this long. My sentiment remains the same that I am exceptionally bullish on the organization, but liquidity in the short term will net better results than holding $RIVN.
If you want to watch any of my allocations, they will be posted live in the HaiKhuu Discord.
HaiKhuu Proprietary Algorithm Report:
Yesterday was an extremely narrow range in the markets that did not provide us with many great opportunities to trade, and those results impacted the performance of the markets. C’est la vie, not much we can do when market conditions are not optimal in any way, shape, or form. Just continue being smart with these positions and cherry-pick the plays you have the most confidence in.
To get an in-depth analysis of our algorithms' performance, check out Asher’s Report!
The results of yesterday are as followed:
Baseline:
$SPY: -0.03%
Our Results:
Base Algorithm: +0.03%
Long-Term Portfolio: -0.01%
The Market:
Variable Market Neutral: -0.04%
Market Neutral: -0.07%
Variable Sector Neutral: -0.1%
Sector Neutral: -0.12%
With market conditions not being optimal at the time of writing this report, I would advise caution prior to entering into any sizable allocation but look to take on some exposure on organizations that have momentum. As always, please make sure you are practicieing safe risk management and limiting your downside risk exposure at this time. There are good times to take on blind risk, and there are bad times. This is one of those bad times I would not recommend attempting to blindly take on risk.
If you take any of these positions today, make sure to set stops to limit your downside risk and take profits when you are happy with everything.
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 5/09/2023
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 5/10/2023
Consumer price index - 8:30 AM ET
Core CPI - 8:30 AM ET
CPI year over year - 8:30 AM ET
Core CPI year over year - 8:30 AM EM ET
Notable Earnings for 5/10/2023
Pre-Market Earnings:
Icahn Enterprise (IEP)
Li Auto (LI)
Performance Food Group (PFGC)
RumbleOn (RMBL)
Syneos Health (SYNH)
Teva Pharma (TEVA)
Wendy's (WEN)
Roblox Corp (RBLX)
Brookfield (BAM)
New York Times (NYT)
After-Market Earnings:
Disney (DIS)
Manulife Financial (MFC)
Nutrien (NTR)
The Trade Desk (TTS)
STERIS (STE)
Amdocs Limited (DOX)
Unity Software (U)
Flex Ltd (FLEX)
Jazz Pharma (JAZZ)
Robinhood (HOOD)
Wrap up
Please be smart, take advantage of all of the opportunities that are presented to you, and capitalize on the momentum in the markets. Do not follow companies that are not trending, and make the most out of any position you are in. Realize some gains, be happy, and relax over the next couple of days in the market until we have momentum back in our favor. Watch out for $SPY 410 and have some fun.
Good luck trading, and let’s make some bank!