HaiKhuu Daily Report 5/19/2023
Good morning and happy Friday! Hope you all have some fun plans for the weekend and are ready for an exciting time for the markets. At the time of writing this report, $SPY is trading above $420 and is looking extremely strong. I will say that this optimism in the market is amazing, but I will warn you all that I personally believe that this will be short lived and will result in a lot of people realizing losses in the next couple of weeks as a result of FOMOing in at this relative top, before the markets come down.
There is a lot of optimism in the markets, so take advantage of the momentum in the market while it is here and capitalize on the opportunities presented to us, but please just tread lightly and do not get blind sided.
Make smart plays, look to take profit, and decrease risk.
This is not the worst time to start hedging your account, and if you want to start taking on a little risk, you can start opening up some general bearish allocations. I personally am looking to get some bearish allocations and short $QQQ and will talk about this later.
Good luck trading today everyone and let’s make some bank!
Thoughts & Comments from 5/18/2023
Yesterday was an interesting and exceptionally bullish day that provided many opportunities to trade, and even more opportunities to realize some gains.
We opened the day with $SPY trading at $414.97, down from the previous close of $415.23. There was a significant amount of confidence that positively impacted the performance of the markets, as we watched the markets continually climb throughout the day.
Right after open, we all watched as the markets continued to slowly trickle up, with $SPY hitting a resistance at $418 and testing it three times before not being able to break, and caused us to sell off into the lunchtime lull, where the markets continued to come down. We did not make a new low of day, but we watched as $SPY reversed around 2 PM EST, after making a relative bottom. At 2 PM EST, $SPY was trading at $415.59, and watched as $SPY moved up to $416.94 to start off powerhour to continue on it’s tear to end the day.
We pushed new 2023 highs on $SPY and watched as more and more people piled into the markets, where we went on to officially make the final high of the day, with $SPY trading at $419.67, and ending the day trading at $419.23. It was a beautiful day with a positive movement of $4 on $SPY, being up approximately 0.96% from the previous close, with an intraday bullish movement of 1.04%.
It was an amazing day for the markets and provided us with many opportunities to realize a significant amount of gains in the process of everything. I hope you all were able to capitalize on the opportunities and make some BANK!
Thoughts & Comments for Today, 5/19/2023
Today should be an interesting time for the general markets. There is a significant amount of bullish momentum going into open, with a lot of people anticipating Jerome Powell speaking later today. I would highly advise that everyone look to take advantage of the momentum that is presented to us in the markets, but please be safe and tread lightly. As I said before, I do believe we are due for some sort of correction in the near future, but it is more of a matter of when that ultimately does end up happening.
Just watch out for Jerome Powell speaking today at 11am EST, as there is a lot of hype going into the event, assuming that he doesn’t say anything extremely positive, I personally am expecting to see a sell off as a result of people exiting positions that didn’t increase heavily as a result of him speaking.
In the short term, I do believe there will be lots of opportunities to trade and realize some gains, so do what you can in the short term to increase your profit potential as much as possible, without taking on a significant amount of risk.
I would highly recommend that you look to start hedging your accounts now while you can, as this is a great opportunity to do so, as VIX is low, and the price of equities are relatively high. You can do this by selling calls on your equity, purchasing puts against your position, or by getting general bearish positions by hedging with puts on indices. If you were to choose an index to hedge with, depending on your position, I would recommend getting puts on $QQQ for higher risk allocations, and puts on $SPY for general positions.
If you would like to take on some risk too, this is not the worst time to start shorting positions that you believe are overvalued at this time. One risky allocation you could look into getting, is getting puts on semiconductors. You can allocate specifically into $SOXS, which is a 3x bear ETF against the semiconductors, or you can look to specifically purchase puts on an any organization. The one position I personally am in right now is getting puts on $NVDA. This is extremely high risk, as $NVDA is currently on a tear, and have earnings next week, but this is one of those positions that I personally believe is worth the risk, assuming you can afford a minor loss in the case the position is incorrect.
Please just continue to be careful though. A lot of people will get faked out over the next couple of weeks, so do what you can to limit your downside exposure, and do what you can do to capitalize on this amazing opportunity that is presented to us.
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 interesting day for the algorithm. Our fundamental analysis underperformed which resulted in the overall performance of the algorithm, but despite this, our technical analysis outperformed the fundamental analysis by a significant amount. It is unfortunate that both were beat out by $SPY, but this has been an extremely interesting week that has made it extremely difficult to navigate as safety stocks have be underperforming in comparison to mega caps. We will see what we can do to navigate this in the short term and adjust what we can!
The results of yesterday are as followed:
Baseline:
$SPY: +1.04%
Our Results:
Base Algorithm +0.78%
Variable Market Neutral +0.29%
Long Term Portfolio +0.27%
Variable Sector Neutral +0.09%
Market Neutral -0.20%
Sector Neutral -0.29%
With the market sentiment being extremely bullish right now, this is not the worst time to allocate into strong equities you personally have conviction in trading today. I would advise caution as there will be a significant amount of movement in the general markets impacting the performance and success of the markets in the short term, but assuming that this momentum is sustained throughout today, there will be many great opportunities to realize some gains. 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 5/19/2023
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 , $NVDA , $GOOGL
Position Opportunities:
Hedge the positions you want to hold
Set stops in guaranteed profit for any position you are in profit in
Cut all positions you are not comfortable holding
Exit positions you are comfortable taking profit on
LONG OPPORTUNITIES:
Long-Term Dividend - $GAIN
Long-Term Riskier EV Play - $RIVN
Economic News for 5/19/2023
New York Fed President Williams speaks - 8:45 AM ET
Fed Chairman Powell and former Fed Chairman Bernanke on panel - 11 AM ET
Notable Earnings for 5/19/2023
Pre-Market Earnings:
Deere & Company (DE)
RBC Bearings Incorporated (RBC)
Foot Locker (FL)
CI&T (CINT)
Wrap up
Overall, please take advantage of this momentum in the markets, but please tread lightly as we are back to the $420 range on $SPY. We are either going to break out, or break down. Play the momentum but hedge your account accordingly and practice risk management.
There will be lots of opportunities to trade today, so realize some gains and have some fun in the process of everything!
Good luck trading, and I hope you all have a great weekend!