HaiKhuu Daily Report 5/31/2023
Good morning and happy Wednesday! Hope you traders are enjoying this confusing time on the markets and capitalizing on the opportunities that are presented to us! $SPY is at a level where we are either going to break out or break down here at $420.
Realistically, with enough time I do believe that we are coming down, but it is just a matter of how long will it take to do so and how many people will get burnt in the process. At the time of writing this report, $SPY is trading under $420, so I will advise caution when attempting to actively trade.
I would bet money at this point that $SPY will slip over the next couple of weeks from this point with semiconductors being the leading indicator that the markets are coming down. Obviously, take this all with a grain of salt as your prediction is as valid as mine for where the markets will go over the next couple of weeks, but I have 100% conviction and have capital ready to allocate into strong equities at a phenomenal price. I’ll talk about my personal thoughts on allocations later on in this report and again in the near future when it is time to allocate to the markets.
But for now, please be safe, capitalize on the opportunities available to you, stay liquid, open some bearish positions, and hedge all of the positions you anticipate holding.
Good luck trading today everyone, let’s have some fun!
Thoughts & Comments from 5/30/2023
Yesterday was an interesting day for the general markets with a significant amount of movement in the general markets and many opportunities to realize a hell of a lot of gains or get absolutely decimated in the process of attempting to fight the trend. We watched organizations like $AI and $NVDA catch another bid as this AI-based hype continues to trend in the markets, as $AI pumped 33% and made a new 52-week high, and watched as $NVDA broke above $400 and make a new all-time high trading at $419.38. I do believe that the end is near for this AI-based hype as we are watching the momentum slow down, but it will be a while until we see the reckoning.
$SPY started the day trading relatively strong, opening up significantly from the previous close, with $SPY opening the day trading at $422, up $2 from the previous close on Friday, but despite this confidence and sentiment in the markets, we watched as the markets were extremely choppy and continued to hover around that $420 support level for the large majority of the day. $SPY quickly dropped from open, and we really did not move that much from that $420 level. It was difficult trading, but there were at least organizations you could trade and attempt to capitalize on.
Going into the lunchtime lull, the markets were ridiculously black just continually hovering around $420, and only started to see some momentum as we finally broke that support as people started to sell, causing $SPY to make its official low of the day trading at $418.74, and stopping out a lot of traders. Despite this selling though, the markets did quickly rebound for the day, running back up to test $421.
With power hour rolling around, there really was no significant movement at all, with choppy market conditions that did make it difficult for the majority to attempt to trade. If you look at the overall markets, there really was not much in terms of significant movement that you could have capitalized on, and realistically, you would have realized losses if you attempted to scalp that lack of momentum in the markets.
We ended the day with $SPY trading at $420.18, up $0.16 from the previous close on Friday, up approximately 0.038%, with an intraday bearish movement of -0.44%. It was extremely difficult to navigate the markets yesterday, without many opportunities to actively trade or realize some gains, but it did give us some opportunities to scalp some of the momentum in organizations like $AI, which had an intraday bullish movement of +16%.
Terrible day for the markets, but a great day for individuals who attempted to capitalize on the opportunities available. Continue to be smart in these market conditions, and do what you can to maximize your profit potential because this momentum is not going to last.
Thoughts & Comments for Today, 5/31/2023
Today should be a tough time for the general markets with a significant amount of momentum being lost in comparison to the location where we are at in the markets. There should be a significant amount of strength as the markets are at relative highs in comparison to this time last month. We are still in greed on the fear and greed index, and I believe that this is just the beginning of what will be a difficult summer to navigate. $SPY is trading below $420 right now, and $NVDA, the leader in the AI-based hype, is back below $400. Retail is losing confidence extremely quickly and the result of that is that we are going to see some selling happening over the next couple of weeks.
Please continue to be careful in these market conditions, but please capitalize on the opportunities that are available to us at this moment. There will be lots of opportunities to trade throughout the day that would net you a significant amount of realized gains, but I am telling you now, that it will be extremely difficult to find solid bullish trades that you personally are comfortable and confident in, in the short term.
This is going to be one of the few days that I do not recommend attempting to aggressively trade or attempt to FOMO into anything. I would recommend that the majority of introduction-level traders simply sit on the sidelines today and watch what happens.
Follow the momentum in the markets, if we continue to downtrend, do not try to pick up any falling knives. Just follow the bearish momentum and let the positions work themselves out. Do not do anything that would put your portfolio or liquidity at risk, and just please be smart.
Start picking up some bearish allocations in the markets. You might have to pay a slight premium to enter into some puts, but this really is one of the last chances you have in the short term to enter into some positions. One position I would highly recommend you look into getting into is shorting the semiconductors. This is playing with fire, as semis can go crazy again with literally zero justification, but at the same time, with the movement in the general markets, and the fact that semiconductors are highly overpriced at this moment, there is a solid risk-reward ratio to capitalize on the bearish side of the markets.
Just make sure to hedge any positions that you anticipate holding over the next couple of weeks, and remain solvent while the markets are irrational. Tread lightly on these market conditions but be smart and realize some gains. This is not the time to be optimistic and greedy. Be realistic with the situation and look at it for what it is. There is a lot of bearish sentiment in the markets right now with lots of conversations about the debt ceiling. The vote needs to be passed tonight. There’s a good chance that the vote does pass, but think about the detriment to the markets in the short term in the case that it does not.
As long as you are able to remain solvent in these conditions, you will be in a good place.
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 our technical analysis. The losses incurred on the long-term portfolio were relatively in line with the general markets, but the technical analysis underperformed. The losses incurred were not significant, but it was unfortunate to see that losses were incurred. There is justification for these losses as a result of market conditions, but it obviously is not optimal to take a loss in the grand scheme of things. We are reflecting on the positioning of this portfolio and doing what we can to increase profit potential and safety at this point. Please continue to take these live alerts with caution while we are attempting a live-test in these market conditions and doing what you can to decrease risk.
To get an in-depth analysis of our algorithms' performance, check out Asher’s Report!
The results of yesterday are as followed:
Baseline:
$SPY: -0.44%
Our Results:
Sector Neutral: -0.2%
Long-Term Portfolio: -0.53%
Market Neutral: -0.63%
Variable Sector Neutral: -0.7%
Variable Market Neutral: -0.78%
Base Algorithm: -0.91%
With market conditions not being optimal at this point and this being a live test of a new portfolio, I would advise caution at this point while attempting to take any of these positions. They are all valid from a technical analysis standpoint providing us with many opportunities to trade, but please make sure to cherry-pick the positions that YOU PERSONALLY are the most comfortable and confident in entering at this time, as there is a significant amount of risk blindly taking on some positions at this moment. Make sure to decrease your downside risk potential while attempting to trade today, and realize gains when given an opportunity to do so.
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 5/31/2023
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, $AMD, $GOOGL, $AAPL , $MSFT
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 5/31/2023
ADP employment - 8:15 AM ET
Chicago Business Barometer - 9:45 AM ET
Job openings - 10 AM ET
Philadelphia Fed President Patrick Harker speaks - 12:30 PM ET
Federal Reserve Beige Book - 2 PM ET
Notable Earnings for 5/31/2023
Pre-Market Earnings:
Advanced Auto Parts (AAP)
Cae inc (CAE)
Capri Holdings (CPRI)
Donaldson Company (DCI)
Chindata Group Holdings (CD)
Ehang Holdings (EH)
After-Market Earnings:
Salesforce (CRM)
CrowdStrike (CRWD)
Veeva Systems (VEEV)
NetApp (NTAP)
Okta inc (OKTA)
Chewy (CHWY)
Pure Storage (PSTG)
Descartes Systems Group (DSGX)
PVH Corp (PVH)
C3.ai (AI)
Wrap up
Overall, watch out for these market conditions. Things are going to be extremely tough in these conditions and we are going to be provided with many opportunities to get burnt. Do not fight the momentum in the markets and look to realize gains when given an opportunity to do so. Make smart decisions, decrease risk, and make sure to hedge your positions and grab some bearish plays. These are uncharted territories for many, so just continue to tread lightly and remain solvent while the markets are irrational.
Good luck trading, and let’s all hope the market conditions are optimized soon so we can all capitalize on it.