HaiKhuu Daily Report 5/26/2023
Good morning and happy Friday! Hope you traders are ready for the long weekend and are excited about the current market conditions. $SPY is moving up during the pre-market session, and is currently trading above the psychological resistance at $415 at the time of writing this report!
Just a quick reminder that the markets are CLOSED on Monday, for memorial day. Thank you to anyone who was or is in the military for your service.
This should be an interesting time to end the week, I am expecting to see a lot of reallocations in the markets today in preparation for markets to be closed on Monday, so please be careful when you look to allocate into the markets today, look to follow the momentum in the markets, and do not attempt to fight any trends. If a stock is selling off, there is a good reason for the selling, and if a stock is continuing to move up throughout the day, look to simply follow the momentum.
If possible, look to sell some 0-DTE CSPs when given an opportunity to do so, you won’t find many good opportunities as this is not the most optimal time to do so, but free premium to end the week strong is free premium to end the week strong.
Be smart while attempting to trade today, make good decisions, realize some gains, and let’s make some BANK!
Thoughts & Comments from 5/25/2023
Yesterday was an extremely interesting time for the general markets with a confusing sentiment. We started the day off extremely strong with a significant amount of confidence as a result of $NVDA moving up significantly, bringing a lot of confidence into the retail market.
Despite this confidence being in the general markets and providing us with bullish momentum into open, as the markets opened, we watched as the markets drop almost instantaneously, where the high of the morning, was literally the open price, of $414.71, and we watched as $NVDA incurred a significant amount of selling, dropping approximately 10% from the high right before open, and making the official low trading at $366.35.
Things were extremely choppy for the majority of the morning, where there were opportunities to actively trade, but nothing that would have generated a significant amount of realized gains. The chop was extremely difficult to navigate and was consistent throughout the day.
We did see organizations start moving up though throughout the entire day providing us with many great opportunities to realize some gains via day trading versus attempting to scalp. One of the trades we watched was $MSFT go from trading at $321, all the way up to making an official high of the day trading at $326.90.
The markets were relatively slow and choppy, until randomly in the afternoon, we got news in regards to the debt ceiling from Biden, which caused the markets to instantly shoot up, and as people started to process what he was saying, we came down. The plus side to Biden making his statement though, was that $SPY made its official high of the day at $416.15. But after we made that high we did go on to make a relative low trading around $414.
Going into power hour, we did see significantly more momentum come back into the markets, where we went on to test the high of the day, and were unable to sustain that movement, as we started to come down into close.
We ended the day with $SPY trading at $414.65, up $3.56 from the previous close, or up approximately 0.87%, with an intraday bearish movement of -0.02%.
There were many great opportunities to actively day trade and scalp throughout the day and many opportunities to get burnt. Hopefully, you all were able to capitalize on the momentum in the markets and were able to realize some gains as a result of $NVDA moving up approximately 30%.
Thoughts & Comments for Today, 5/26/2023
Today should be another fun time to end this week. I would advise caution as I have been recently, despite the confidence in the markets right now, the sentiment still remains the same that we all should be preparing for this summer session. I personally am expecting to see lower volume and volatility in the markets, with a significant amount of chop that will impact people’s ability to consistently scalp throughout the entire day.
There is a lot of economic news that will come out during the pre-market session that will heavily impact the performance of the markets at this time. Please take this into account prior to entering or exiting any positions. Make sure to not fight any trends in the general markets today as you will only continually get burnt. This is NOT the time to attempt to aggressively scalp, as the chop will impact the consistency of your positions.
As this is a long weekend, I do expect to see a lot more momentum that will drive the markets specifically in any direction that it so desires, with some organizations doing well as people start allocating into them for the weekend, and some organizations slowly trending down as people start to exit those positions prior to the weekend. It will be interesting to see what happens to $NVDA, and I’d put money on the idea that people are going to sell their $NVDA positions and reallocate that capital into safer plays going into this long weekend.
A recommendation I have for you in terms of general positions for the day, as I said before, is to look into selling 0-DTE CSPs with capital you are not actively utilizing. This is not going to generate any type of significant gain, but realizing some gains with relative ease in these market conditions will be a win, mostly if the overall intraday movement is as poor as we’ve seen over the previous couple of days in the markets.
I would recommend staying away from attempting to scalp in these market conditions unless you find optimal times you can enter and exit your position with ease and are able to realize a significant amount of gains in the process. If you are attempting to capitalize on the momentum and sentiment of the day, my personal recommendation is to look more towards allocating into some strong equity positions that you personally have confidence will move up throughout the trading day providing you with a solid day trading opportunity that you can follow with relative ease.
Make sure to continually practice safe risk management in the general markets, mostly today. I believe we will continue to see strength in the general retail markets through next week with a large majority of the movement happening during the pre-market & after-market sessions, with minimal intraday movement. This will be followed by a relative drop off in retail participation, low momentum, low volume, and more active selling than buying, as we come back to the magnet area of $410 on $SPY, and possibly even lower assuming that the market conditions are not optimal, or we get some sort of economic news that negatively impacts market performance.
Continue to prepare for the summer session by having more cash on hand, lower general allocations, some bearish positions to capitalize on larger-scale movements, and hedges for any position that you intend on holding throughout the summer.
This summer is going to be tough unless we see a significant amount of positive movement in the markets, so prepare accordingly, but be fluid in case there is a shift in general sentiment.
Tread lightly on these market conditions and realize some gains when you have an opportunity to do so today.
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 great day for our systems despite the lack of general momentum in the markets. We were able to go on and outperform the markets by a significant margin, providing sizable returns in comparison to $SPY. It was a great day for the new portfolio despite our technical analysis underperforming. Still was a great day with many amazing opportunities to capitalize on the movement in the markets.
The results of yesterday are as followed:
Baseline:
$SPY: -0.02%
Our Results:
Long-Term Portfolio 0.33%
Variable Sector Neutral 0.22%
Base Algorithm 0.22%
Variable Market Neutral 0.16%
Market Neutral 0.10%
Sector Neutral -0.04%
Today should be an interesting time for the general algorithm. I would advise caution as a result of the current market sentiment, but look to take advantage of the momentum in the markets while it is here. I would highly recommend doing research prior to entering into any of these positions, but enter positions that you have confidence in and make sure you are limiting your downside risk where possible, by setting stops in guaranteed profits and taking positions off the table in the case you see a shift in the general market momentum.
Be smart, practice safe risk management with these positions, and realize some gains when utilizing them today!
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 5/26/2023
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 , $GOOGL, $MSFT , $AAPL, $AMZN , $TSLA, $BABA
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 5/26/2023
Durable-goods orders - 8:30 AM ET
Durable-goods minus transportation - 8:30 AM ET
Personal income (nominal) - 8:30 AM ET
Personal spending (nominal) - 8:30 AM ET
PCE index - 8:30 AM ET
Core PCE index - 8:30 AM ET
PCE (year-over-year) - 8:30 AM ET
Core PCE (year-over-year) - 8:30 AM ET
Advanced U.S. trade balance in goods - 8:30 AM ET
Advanced retail inventories - 8:30 AM ET
Advanced wholesale inventories - 8:30 AM ET
Consumer sentiment (final) - 10 AM ET
Notable Earnings for 5/26/2023
Pre-Market Earnings:
Big Lots (BIG)
Booz Allen Hamilton (BAH)
Buckle (BKE)
Diana Shipping (DSX)
Wrap up
Overall, be smart when attempting to trade today. Take into account the momentum in the markets prior to entering into any major position, and follow the momentum. Do not fight any trends and make sure to practice safe risk management. Realize some gains by the end of the day to go into the weekend with a smile. I hope you all enjoy your long weekend and make some bank when trading today!
Good luck trading, and I hope you all kill it trading today!