HaiKhuu Daily Report 5/15/2023
Good morning and happy Monday! Hope you traders all had a great weekend and are excited for the markets this week. I just want to give you all a fair warning, historically, via the almanac, Wednesday and Thursday are bearish days for the general markets, so please just be careful and prepare for this movement in the markets.
Obviously, it is not ideal, but just like any trader in the markets, we have to adapt and make do with the market conditions. I personally expect to see some significant intraday momentum where we can capitalize on both bullish and bearish movements, but in the same fashion as the previous couple of weeks, I expect to see a lack of general momentum in the greater markets on a day-to-day basis. Watch out for the $SPY $410 magnet zone, but we have been loading up here for a while now, and we can expect a significant movement soon.
Going into the summer, I am not optimistic that we will break out and continue moving up, and personally expect to see some significant bearish momentum in the summer. So please be careful and tread lightly. I have the same sentiment as I have had before, and until there is a shift in market momentum or sentiment, it will remain the same.
Please be careful this week, but capitalize on any and all of the opportunities that are presented to us. There should be some fun times in the markets here in the near future, it is just a matter of remaining solvent while the markets are irrational for us to realize the gains we all are in the markets for.
Good luck trading this week, and let’s make some bank!
Thoughts & Comments from last week
Last week was an extremely choppy time for the general markets, with an insignificant amount of movement in the general markets. From Monday open to Friday close, $SPY moved down a total of 0.34%, with many opportunities to get burnt. We started the week relatively strong but watched as the markets came down with relative ease, to shooting back up on CPI numbers on Wednesday and then shooting back up on Thursday with a significant amount of bullish momentum. Friday did not provide us with many great trading opportunities, as there was a significant amount of bearish momentum throughout the day. It was a difficult time navigating the markets, but if you were able to capitalize on the opportunities presented, you should have had a fun but stressful time following the general market momentum.
To breakdown the movement on Friday, we watched as the markets opened relatively strong in comparison to the rest of the week, with $SPY trading at $413.37, up from the previous close of $412.13, but watched as we sold off for the large majority of the morning. We did go on to make a relative high of the day, with $SPY trading slightly above the open price, trading at $413.64, but the move up was insignificant to the general movement down.
The markets sold off for the whole morning session, where we found a relative bottom towards the end of the lunchtime lull. The bearish momentum, though, was unfortunately not over until early afternoon, when we found a bottom under $410, and $SPY made an official low of the day, trading at $409.08. We dropped over 1% from open to the low of the day and watched as there was a significant amount of fighting between the bulls and the bears.
From the bottom, we did see a significant move up, which did provide us an opportunity to trade towards the bullish side towards the end of the day. After making that relative low around 2:15 pm EST, we watched as the markets push up through power hour and close the day and end the week officially at $411.59, down $0.54 from the previous close, or approximately 0.13%, with an intraday bearish movement of -0.44%.
It was a tough day for actively trading and a tough week, in fact, for the large majority. I hope you all were able to capitalize on the opportunities available to you and were able to relatively minimize your risks. If you were able to realize some gains trading last week, give yourself a pat on the back, and if you were unfortunately impacted by the chop and lack of momentum in the markets, hopefully, your losses were not significant, and you can continue to move forward with stride. This summer session is going to be difficult for many but provides a significant amount of gains for anyone who is able to remain solvent longer than the markets are acting irrationally.
Thoughts & Comments for Today, 5/15/2023
Today should be an interesting time for the markets. At the time of writing this report, $SPY is up slightly above the close on Friday, but I am hesitant to be extremely optimistic. Historically, today is an interesting time for the markets where it genuinely is a toss-up. On the Monday after mothers Day, Dow is up 17 of the last 28 years but down 8 of the last 11 years, while on the Monday before May expiration, Dow has been up 25 of the last 35 years but down 7 of the last 12 years.
It is going to be a toss-up about what ultimately happens in the markets and what direction we end up taking. I personally do believe we should see some significant movement in the markets soon, but at the same time, I do believe we will have a relatively choppy day that will be difficult for the majority of traders to capitalize on the markets. Please be careful and continue to have the $SPY $410 number in mind.
Ideally, we continue to see some strong bullish momentum in the markets and have a significant amount of strength to start this week off, but I am not certain about how the general movement in the markets will impact performance. As I said before, historically, Wednesday and Thursday are bearish going into the monthly expiration. Please be smart and capitalize on the opportunities that are available to you, but do not look to take on a significant amount of risk in the short term, as the markets are not optimal for it.
Continue to prepare for the summer session ahead of us, as a lot of people will have a difficult time. Hold cash, continue to hedge your account when you can, and capitalize on the short-term opportunities available to us via scalping and day trading. VIX is up right now, so this is not the optimal time to start hedging your account, but this is not the worst time to start adding to a hedge or starting to short some general equities in the markets. One sector I am genuinely interested in shorting into the summer is semiconductors. I personally believe that $NVDA and $AMD are overpriced in the short term, and when given an opportunity to do so, I will look to get some puts on those organizations in speculation that they come down significantly harder than the rest of the markets here in the next couple of weeks. Obviously, this is not financial advice and is just me speculating on the movement in the general markets, but it is something that you all should seriously consider with a small portion of your capital. Do not risk anything of any major significance, and look to minimize your exposure, but it will never hurt having an ATM option contract for a couple of months out, go highly ITM, assuming that $NVDA starts downtrending after this insane 100% movement it has had this year.
Please be careful while speculating, and make sure that you are able to remain solvent at this time. I still expect to see some significant movement that will impact people’s portfolios heavily towards the middle of the summer, so be smart and capitalize on any and all of the opportunities that are available to you at the moment.
Be smart, be safe, and remain solvent at this time.
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 for the performance of the algorithms. Our bullish strategies worked as expected in perspective to the general markets. Our technical analysis beat out our fundamental analysis and the markets, but our fundamental analysis underperformed in comparison to $SPY. This does not cause any concern in the grand scheme of things, and we highly recommend you utilize our algorithm to cherry-pick positions that you personally believe are the highest-performing positions for the day.
Come check out Asher’s Report, there is a significant amount of updates that have been pushed out, so please check them out to remain up to date!
The results of last week are as followed:
Baseline:
$SPY: -0.75%
Our Results:
Sector Neutral: +0.33%
Variable Sector Neutral: +0.07%
Market Neutral: +0.06%
Variable Market Neutral: -0.36%
Base Algo: -0.65%
Long-Term Portfolio: -0.81%
With the sentiment in the markets today, please be careful allocating too heavily into the markets as there is going to be a significant amount of risk in blindly entering into any position today. This is not the time that you want to take on a significant amount of risk, so do what you can to increase your profit potential, but do not look to increase the amount of risk that you are taking on. Please make sure to 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 5/15/2023
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 5/15/2023
Empire State manufacturing survey - 8:30 AM ET
Chicago Fed President Goolsbee on TV - 8:30 AM ET
Minneapolis Fed President Kashkari speaks - 9:15 AM ET
Notable Earnings for 5/15/2023
Pre-Market Earnings:
Monday.com (MNDY)
Catalent (CTLT)
Tower Semiconductor (TSEM)
TPG Inc (TPG)
Centerra Gold (CGAU)
FREYR Battery (FREY)
After-Market Earnings:
Nu Holdings (NU)
James Hardie Industries (JHX)
XP Inc (XP)
Rumble (RUM)
P10 Inc (PX)
Danaos Corp (DAC)
Grinder (GRND)
Fortuna Silver Mines (FSM)
Navitas Semiconductor (NVTS)
CymaBay Therapeutics (CBAY)
Wrap up
Overall, please just be smart while trading today and make plans on how you want to navigate the markets over the next couple of weeks. There is going to be a significant amount of momentum you can capitalize on the markets, and it is more of a matter of time before the markets come down with the summer. So plan accordingly, take risk off the table now while you can, and maximize the profit potential you can generate while the opportunity to do so is here!
Good luck trading, and I hope you all have a great week!