HaiKhuu Daily Report 5/11/2023
Good morning and happy Thursday! Hope you all are excited for what should be a rather interesting day for the markets. Historically, via the almanac, this is a bearish day for the general markets, so please be cautious and tread lightly while attempting to trade today. There should be many opportunities to trade with VIX increasing throughout the pre-market session. I would either recommend holding cash and sitting on the sidelines today or if you are looking to actively trade, look to follow the momentum in the markets. Don’t make any positions until all of the pre-market economic news is out, and be smart with any positions you do decide to enter into.
Make smart moves, realize gains when given an opportunity to do so, and limit your downside risk potential.
Thoughts & Comments from 5/10/2023
Yesterday was an interesting time for the markets with many opportunities to realize a significant amount of gains, as well as get burnt in the process. Lots of people had a difficult time navigating the markets yesterday, but despite this, lots of traders were able to capitalize on the extremely choppy market conditions. We did not see much movement in the greater markets, but we had a lot of stocks that were trending throughout the day.
$SPY started the day looking extremely bullish as a result of CPI data coming out during the pre-market session, causing us to break out with relative ease. $SPY opened the day trading at $413.91, up significantly from the previous close of $410.93, and looked relatively strong. Within the first couple minutes of the day, we went on to make the official high of the day, with $SPY trading at $414.54 but losing confidence extremely quickly.
We watched as, despite $SPY making a new high of the day, quickly sell off with a lack of confidence after the markets opened, resulting in a significant amount of bearish momentum that impacted people’s ability to navigate the markets. Within the first hour, all of the momentum and gains that were unrealized with $SPY was lost, and the markets were not looking good in any way, shape, or form. The markets went on to continue to make new lows of the day throughout the whole lunchtime session, where we snapped back to $410 on $SPY and broke below it, stopping a significant amount of traders out for a loss, prior to recovering nicely. The official low of the day on $SPY was $408.87, down approximately 1.2% from open, with relative weakness in the general markets.
The markets did recover after making the official low of the day with a nice bounce from the bottom after stopping a lot of people out. In the final two hours of the day, we watched as $SPY recovered approximately 1% from the bottom, recovering pretty much all of the losses that were incurred in the meantime. We broke back above $410 quickly and continued to move up into power hour.
During power hour, we did watch as the momentum in the markets slow down significantly, not providing us with a great opportunity to trade but provided us a great opportunity to exit any scalps that were entered near the relative bottom. $SPY ended the day trading at $412.85, up $1.92 from the previous close, or approximately 0.47%, with an intraday bearish movement of down 0.25% from open.
It was a tough time for traders as a lot of people got burnt, but provided people with many opportunities to get in and out of positions.
Hopefully, you all were able to get out of your $RIVN positions close to open or at the relative peak because, at the top, it was an amazing exit, and was nasty watching it sell off approximately 10% from the top.
Great job to anyone who was able to capitalize on the momentum and opportunities that were available yesterday, and let’s go on and kill it trading today!
Thoughts & Comments for Today, 5/11/2023
Today should be an interesting day as a result of a significant amount of economic news coming out during the pre-market session. We have all of the PPI data as well as jobless numbers that will impact the performance of the markets in the short term. I would highly recommend that the majority of traders not make any positions prior to this and wait until there is a clear direction with market momentum. Following the momentum in the markets will be the easiest way to day trade today.
I personally do expect today to be a choppy and red day for the markets with the pre-market movement as well as general sentiment in the markets today, so I just want to warn everyone to be smart and capitalize on the opportunities that are presented to us in these market conditions.
Lots of people will have a difficult time in the short term trading this chop, but this chop will provide us all with an amazing opportunity to capitalize on it. Weak hands will be shaken out over the next couple of weeks and the following months during the summer session in the markets, so please continue to be smart and take advantage of this sentiment in the short term to capitalize on the future opportunities available to you.
Things may be tough right now with a lack of general momentum and movement in the greater markets, but all this is doing is getting weak retail traders to leave the markets and sell their positions at a loss going into the summer for us to be provided with an amazing opportunity to load up on strong equities and capitalize on their fear and weakness. Continue to tread lightly in these market conditions and stay strong in the meantime. It may be difficult for a lot of traders in the short term, but as long as you are able to stay solvent longer than the markets are irrational, you will be in an amazing spot to realize a significant amount of gains towards the end of this year.
Continue to make your gameplan for how you want to navigate the summer session, I know I will sound like a broken record saying this, but the summer session will be tough, so hedge the positions you want to continue to hold, sell the positions you do not have confidence in and look to hold cash. Take advantage of the short-term momentum in the markets when it is apparent, but do not forget the greater sentiment while getting caught up in the short term.
Once vix drops down again, I will look to grab some puts on $SPY and some general indices to ride this movement in the short term, but until then, I will look to actively navigate this chop and not have any major allocations as I personally am out of the majority of my holdings in $RIVN at this point.
Be strong, stay strong, and do what you can to capitalize on any and all of the opportunities that are available to you in the short term. Things may be difficult right now, but situationally, things could always be significantly worst. Continue to tread lightly while the markets are in this current condition, and do what you can to maximize your profit potential.
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 beat across the board with all of our systems. I wish that the bullish strategies outperformed the markets by a significant margin, but as we saw with market conditions, they just were not optimal yesterday for active trades. We will take the slight win with stride but know that we were pretty much just in line with the markets. I am happy to see our neutral strategies work out just as expected, but ideally, we are able to outperform with everything by a large margin.
To get an in-depth analysis of our algorithms' performance, check out Asher’s Report!
The results of yesterday are as followed:
Baseline:
$SPY: -0.25%
Our Results:
Sector Neutral: +0.35%
Variable Sector Neutral: +0.22%
Market Neutral: +0.09%
Variable Market Neutral: -0.08%
Base Algorithm: -0.23%
Long-Term Portfolio: -0.24%
With the pre-market sentiment in the markets being bearish, I would advise caution at this point when looking to make any allocations right now. If there is a shift in the momentum in the markets, please look at this list and cherry-pick the positions that you personally are the most comfortable and confident in. There is a tighter list of allocations today, meaning larger allocations across the board. Do your own due diligence prior to entering into any of these positions and take the proper precautions to practice safe risk management and limit your downside risk.
Set a stop loss to limit that risk, increase that stop to guarantee profits, and continually move that stop up to secure more profits when given an opportunity to do so.
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 5/11/2023
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 5/11/2023
Producer price index - 8:30 AM ET
Core PPI - 8:30 AM ET
PPI year over year - 8:30 AM ET
Core PPI year over year - 8:30 AM ET
Initial jobless claims - 8:30 AM ET
Continuing jobless claims - 8:30 AM ET
Fed Gov. Christopher Waller speaks - 10:15 AM ET
Notable Earnings for 5/11/2023
Pre-Market Earnings:
JD.com (JD)
Brookfield Corp (BN)
PerkinElmer (PKI)
NICE Ltd (NICE)
Entegris (ENTG)
Charles Rivver Laboratories (CRL)
Tapestry (TPR)
US Foods (USFD)
YETI Holdings (YETI)
Krispy Kreme (DNUT)
After-Market Earnings:
Sun Life Financial (SLF)
Gen Digital (GEN)
News Corp (NWS)
Sanmina Corp (SANM)
Getty Images (GETY)
Iamgold Corp (IAG)
Indie Semiconductor (INDI)
SilverCrest Metals (SILV)
Westrock Coffee (WEST)
Harrow Health (HROW)
Wrap up
Overall, please just be smart while actively trading today, lots of people will have a difficult time, and some people will have a significant amount of success. I would stay statistically, the majority of individuals will have a tough time today, and the small minority of traders who do have a significant amount of success are lucky or have a significant bankroll where these movements in the markets really do not impact them that heavily.
Continue to tread lightly and prepare for what should be an extremely interesting day for the markets
Good luck trading, and let’s make the most out of any opportunities presented to us!