HaiKhuu Daily Report 5/16/2023
Good morning and happy Tuesday! Hope you traders are feeling amazing and are excited about the markets today. $SPY is down ever so slightly from the previous close at the time of writing this report. The movement down is nothing of major significance, but this lack of market movement is eery.
Be careful and cautious at this time while attempting to actively trade. Lots of individuals are going to continue to have a difficult time attempting to navigate these choppy market conditions, so be careful and cautious, but capitalize on any opportunities that are presented to you. Follow the momentum in organizations if you are attempting to trade over the next couple of days, as there will not be many organizations you can effectively trade in these market conditions.
It would be surprising to see a significant amount of movement today, but let’s hope for the best and prepare for the worst. Continue to watch out for $SPY $410, and prepare for a choppy day with no major movement in the greater markets. If there is momentum, follow the momentum and do not fight any trends.
Thoughts & Comments from 5/15/2023
Yesterday was a gross day for the general markets that made it extremely difficult for the majority of individuals to realize any type of significant gains unless you were taking on a significant amount of risk with a relatively small reward. We started the day with $SPY trading at $412.21, up slightly from the previous close of $411.59 on Friday but not up enough to create a significant amount of confidence. Right from market open, we watched as the markets slipped and continue to sell for the first 40~ish minute of the day, not providing us with much confidence as we came back to the $410 area on $SPY. We made an official low of the day trading at $410.24 but showed there was still relative strength despite the lack of confidence in the $410 range.
After hitting the official low of the day, we did watch as the markets recovered but remained relatively neutral throughout the lunchtime lull. Volume and momentum were low, but it was nice that we hovered at least around $412 and the open price. Towards the end of lunch, we did watch as the markets move up slightly, but the movement was not significant at all in any way, shape, or form. We did make a high of the day, ever so slightly above the open price at $413.43, but we came down right after it happened and hovered at the same price.
Going into power hour, we did have some weak bullish momentum that did drive the markets up slightly, where we ended the day slightly higher than the open price, with $SPY trading at $413.01, up $1.42 from the previous close, or up approximately 0.35%, with an intraday bullish movement of +0.17%.
It was genuinely a tough day for the markets, and extremely difficult to capitalize on the momentum, so if you unfortunately lost, do not worry, a lot of traders had a difficult time, but if you were able to capitalize on the momentum in the markets and the opportunities presented to us, great job, you should give yourself a pat on the back!
Thoughts & Comments for Today, 5/16/2023
Today should be a little more interesting of a day as a result of economic news that will heavily impact the momentum in the markets. It would not surprise me, as I said before, to see us hovering around the $410 area or have a lack of general momentum in the markets, but please just be extremely safe in these market conditions, as we are due for some major market movement soon. Ideally, we do see a breakout and a significant movement up in the short term, but I am not confident in the direction we will ultimately go.
There are a lot of risks while actively trading right now as a result of a lack of momentum and chop that will impact people’s ability to actively invest and trade with ease in these market conditions, so do what you can to limit your downside risk and continue to capitalize on the opportunities available. I do not recommend you attempt to trade any stocks that are not actively trending and look to follow the momentum in the markets. These are not the market conditions where you want to catch a falling knife or attempt to short after watching a significant move up. There is a good chance you are right, assuming you time your allocation properly, but if you time anything incorrectly at this point, there will be an unfortunate loss that will be incurred.
Please just be smart while attempting to navigate the markets in the short term and continue to prepare for the summer session in the markets. I personally am holding a significant amount of cash at this point and will be starting to continually add to bearish allocations in anticipation of what should be a difficult time for the summer. Yesterday, I purchased a put on $NVDA in anticipation that they come down heavily over the next couple of weeks with the general markets but come down significantly harder than the markets. I purchased the $280 strike for the middle of August but will realistically take profit around earnings, assuming that $NVDA does come down as a result of it.
I do believe that in the short term, $NVDA and the semiconductor market are overvalued, so if we do see a significant drop in utilization of semiconductors outside of the current “hype” of AI, we will see a sharp decline in sales.
It should be fun, and this is obviously speculation, but I will be interested to see what happens with $NVDA going into their earnings on Wednesday next week.
The summer session is going to be difficult for the majority of individuals not being able to navigate market conditions optimally, but C’est la vie, there is not much we can do about the lack of momentum. Just continue to remain solvent while market conditions are not optimal, so you are able to allocate towards the relative bottom, where we see some face-ripping market momentum and movement towards the end of the year.
Keep making good decisions, capitalizing on opportunities that are available to you, and realizing gains in the short term while the opportunities are available to us in these market conditions. Things are about to get rough here very soon, so please be careful, and make some bank while you can.
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 tough day for the performance of the algorithms. Everything underperformed the market, with the majority of the losses that were incurred being a result of the safety portfolio we’ve created. The losses were not significant in any way, shape, or form, but it is unfortunate when we see results like yesterday. We take everything with stride, though, and move on with life. We will see what happens in the grand scheme of things, as one day of poor results does not dictate any larger reasons to be concerned with performance. It sucks seeing results like yesterday, but you know, as I say… C’est la vie.
To get an in-depth analysis of our algorithms' performance, check out Asher’s Report!
The results of yesterday are as followed:
Baseline:
$SPY: +0.17%
Our Results:
Variable Sector Neutral -0.19%
Sector Neutral -0.24%
Base Algorithm -0.37%
Variable Market Neutral -0.42%
Long Term Portfolio -0.49%
Market Neutral -0.53%
With the intraday momentum in the markets continuing to be relatively minimal, please be cautious about any allocations you decide to pick. As always, for safety, I recommend allocating towards relatively safer stocks that you have confidence in and that you personally believe will outperform the general markets today. Use this list to cherry-pick your positions for the day, but just 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 5/16/2023
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 , $NVDA, $AAPL , $MSFT , $TSLA, $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 5/16/2023
Cleveland Fed President Mester speaks - 8:15 A MET
U.S. retail sales - 8:30 AM ET
Retail sales minus autos - 8:30 AM ET
Industrial production - 9:15 AM ET
Capacity utilization - 9:15 AM ET
Business inventories - 10 AM ET
Home builder confidence index - 10 AM ET
Fed Vice Chair Barr testifies - 10 AM ET
Richmond Fed President Barkin speaks - 10:30 AM ET
New York Fed President Williams speaks - 12:15 PM ET
Chicago Fed President Goolsbee on TV - 2:30 PM ET
Atlanta Fed President Bostic and Chicago Fed President Goolsbee on panel - 7 PM ET
Notable Earnings for 5/16/2023
Pre-Market Earnings:
Home Depot (HD)
Sea Limited (SE)
Baidu (BIDU)
Tencent Music (TME)
On Holding (ONON)
iQIYI, Inc (IQ)
MINISO Group Holding (MNSO)
MakeMy Trip Limited (MMYT)
Paysafe Limited (PSFE)
Golden Ocean Group (GOGL)
After-Market Earnings:
Keysight Technologies (KEYS)
Doximity (DOCS)
Kyndryl Holdings (KD)
Agilysys (AGYS)
Star Bulk Carriers (SBLK)
NextGen Healthcare (NXGN)
Wrap up
Overall, market conditions should be interesting over the next couple of days in the general markets. Please just be smart and look to capitalize on any and all of the opportunities that are presented to us. Make smart decisions, minimize risk, maximize profit potential, and take risk off the table. Hope that we see some bullish momentum that positively impacts the markets, but prepare for the worst.
Good luck trading, and let’s make some bank!