HaiKhuu Daily Report 5/12/2023
Good morning and happy Friday! Hope you traders are excited for what should be a day filled with more momentum in the markets! The previous couple of days have been rather difficult in terms of lack of movement in the general markets, but we have been provided with many great opportunities to follow the momentum and capitalize on the opportunities available. If you are attempting to trade today, things should still be good, but please, look to follow the momentum and do not attempt to trade anything that is not trending. We have a significant amount of economic news that will impact the sentiment in the markets, so please be smart and conscious of this possible shift coming out at 10 am EST today.
I hope you all make some bank trading today and have a great weekend! Make smart moves and realize gains today!
Thoughts & Comments from 5/11/2023
Yesterday was a weird day as we continue to lack general momentum in the markets. The overall movement for the day was terrible, with not much movement in the greater markets, providing us with choppy intraday conditions. We traded in a tight range all day, not providing us much overall movement on $SPY, but had many organizations that trended throughout the day, providing us all with opportunities to trade and realize some gains in the process of everything.
$SPY started the day trading at $411.93, down from the previous close of $412.85, and showed relative weakness throughout the entire morning. We quickly sold off right from market open, and within the first half an hour of the day, we went on to test the $410 support level on $SPY and make an official low of the day, trading at $409.97.
Markets did trend up after making the official low of the day, whereas after the lunchtime lull, we did go on to recover all of the losses slowly and consistently until we quickly sold off again. We tested open prices and then watched as there was a sharp drop off right around 2 PM EST, but thankfully, the snap back was quicker than the sell-off, as we went from making those relative lows to pushing back to making highs of the day going into power hour.
We did not move up much during power hour at all, we stayed in the same range for the majority of the time, but we did chop around until close. At close, we ended the day with $SPY trading at $412.13, down $0.72 from the previous close, or approximately 0.17%, with an intraday bullish movement of +0.05%.
It was genuinely a tough day for anyone who was trading but did provide us with many great opportunities to actively trade and follow the momentum in the markets. I hope you all were able to capitalize on the momentum in the markets and realize some gains as a result of this movement, but if you were not able to capitalize on the movement on the markets yesterday, do not kick yourself as it was truthfully a brutal day to attempt to trade.
Thoughts & Comments for Today, 5/12/2023
Today going into open, it looks like there is going to be significantly more momentum in the markets in comparison to the previous couple of days. I do want to warn you all again at 10 am EST, we have a significant amount of economic news that could impact the sentiment and momentum in the markets, so please be careful attempting to trade around that point and be fluid with your allocations to follow the market.
It would not surprise me to see another attempt to test $410 in the near future, as well as a lack of general movement in the larger markets on an intraday basis. There will be chop and short-term movement to capitalize on, but it will be extremely difficult to realize gains. Lots of people will have a difficult time realizing any type of significant gains today as a result of the short-term performance in the markets. If you are actively trading, unless you are scalping, look to follow the general movement of the markets.
At 10 am, there are four possible scenarios that happen.
Markets are moving up, economic news comes out, markets continue moving up
Markets are moving up, economic news comes out, markets start coming down
Markets are coming down, economic news comes out, markets start moving up
Markets are coming down, economic news comes out, markets start coming down
Regardless of what happens, look to follow the momentum in the markets and capitalize on any and all opportunities available.
Look to capitalize on the opportunities that are available to us, and do not force any positions. Make sure to practice safe risk management while allocating into the markets at these levels and continue to prepare for the summer session. I’ve personally already noticed a drop off in retail engagement in the markets as a result of this lack of general momentum, meaning we are in step one of a long stage of preparations for the summer.
Continue to make smart decisions, holding cash and opening hedges on accounts in the short term. Stay away from highly speculative positions in the short term, as there is a significant loss in retail confidence at this moment. Cryptocurrency is continuing down from the peak this time last week, $BTC is down approximately 10%, so be careful with attempting to trade or speculate on cryptos.
Stick to holding strong equities, alternative assets that you personally are comfortable holding, and holding cash. Cash will be king and continue to be king going into the summer. We will see some amazing opportunities to allocate into the markets soon, so just prepare for what should be an interesting time, both literally and metaphorically. We will see some great prices, but for that to happen we will need to see a drop in the price of general equities. Just prepare and be smart, and then you should not have a problem at all during this time.
*Note, despite it being Friday, I do not believe there will be many good 0-DTE CSP plays, if I see anything, I will call them out. Vix is low, while the price of equities is relatively high. There’s a possible play selling some ATM calls on $DIS, but that is not the best play possible. I would prefer hedging while VIX is low versus attempting to sell premium.
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 any buy at open sell at close strategy, not due to a major movement in the markets, but the complete opposite, where as a result of the markets not moving at all, the performance of all of our systems are in the tightest range we’ve seen since producing the algorithms. There was literally a 0.16% change between the performance of our best system and our worst system, with everything remaining relatively neutral around the 0% movement mark. It is interesting to see this happen and does not cause any concern at all. It’s just interesting, is all!
To get an in-depth analysis of our algorithms' performance, check out Asher’s Report!
The results of yesterday are as followed:
Baseline:
$SPY: +0.05%
Our Results:
Sector Neutral: +0.09%
Variable Sector Neutral: +0.02%
Long Term Portfolio: -0.00%
Base Algorithm: -0.03%
Variable Market Neutral: -0.06%
Market Neutral: -0.07%
With the momentum leading into the beginning of the day, I would highly recommend you look into actively capitalizing on it from open but look to cut your positions by 10 am EST. This is more of a general safety precaution than a recommendation per the performance of the algorithm. We have a lot of economic news coming out at 10 am EST that will impact the performance of the markets and the sentiment, so capitalizing on the momentum but not incurring any of the liability holding through the reports is the safest way to secure profits. There is a chance the momentum does continue a bullish trend, but I would rather recommend safety, mostly for these plays, than risking performance.
Do your own due diligence prior to entering any of these positions and set stop losses to limit your downside risk where 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 5/12/2023
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 , $TSLA, $AAPL , $MSFT , $RIVN , $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 5/12/2023
Import price index - 8:30 AM ET
Consumer sentiment (preliminary) - 10 AM ET
St. Louis Fed President Bullard and Fed Gov. Jefferson on panel on outlook for economy and monetary policy - 7:45 PM ET
Notable Earnings for 5/12/2023
Pre-Market Earnings:
Spectrum Brands (SPB)
Embecta Corp (EMBC)
Soho House & Co (SHCO)
Wrap up
Overall, capitalize on the opportunities that are available to trade during the earning morning session, follow the momentum around 10 am EST, and please practice safe risk management in the process of everything. Attempt to increase your profit potential, but do not do anything that would heavily impact the amount of risks you are actively taking while attempting to trade. Be smart, realize some gains, and have a great time trading today!
Good luck trading, and I hope you all have a great weekend!