HaiKhuu Daily Report 6/08/2023
Good morning and happy Thursday! Hope you traders are well rested and are feeling phenomenal! Historically, today is a bullish day for the markets, but as we’ve seen before in the past, historical data has not played out frequently this year, but definitely something to take with a grain of salt when attempting to trade.
We are at the lower end of extreme greed in the markets. Let’s see if we can continue to sustain this level of confidence and buying in the markets, but know that the markets can stay irrational longer than you can stay solvent.
It is a matter of time before the markets slow down, but for now… continue to tread lightly, and look to capitalize on any and all of the opportunities available while there is confidence in the markets.
Good luck trading today and let’s make some BANK!
Thoughts & Comments from 6/07/2023
Yesterday was a tough day for the general markets after starting off with a significant amount of confidence. We started the day off with $SPY trading at $428.42, up slightly from the previous close price of $428.03. Markets looked strong right from open as we rallied up to make a new high of the year and VIX reached a new three-year low. Markets were looking extremely strong making an official high of the day trading at $429.62, right under the $430 resistance level. Despite the confidence right from open though, it was extremely short-lived as the markets did come down extremely quickly afterward.
We made the official high of the day 15 minutes into the day and watched as the markets continually came down throughout the entire day with not many opportunities to make some solid positions.
Within the first hour of the day, we were back to open price and watched as the markets continued to come down, going into lunch, we were black on the day after a slight pop to the previous close price and continued to watch as the markets continued to sell off.
As people started to come back from lunch, we watched as the markets went on to continue to sell, making the official low of the day trading at $426.12, down significantly from the high of the day. After making this bottom, we did watch as the markets popped up slightly, breaking back over $427 for a brief moment, before making $427 a resistance level and coming down accordingly into close.
We ended the day with $SPY trading at $426.55, down $1.48 from the previous close, or down 0.35%, with an intraday bearish movement of -0.44%, but a top to close movement of -0.7%. It was an extremely tough day for the markets for anyone who was heavily allocated into long positions, and a rougher day for anyone who was attempting to trade a “bottom”. Hopefully, you all were able to come out of yesterday relatively unscathed, and are prepared for the market conditions in the near future.
Thoughts & Comments for Today, 6/08/2023
Today should be a genuine toss-up on general movement in the markets. I honestly have no idea where the markets are going to go and I cannot lie to you all, this is an extremely confusing time in the general markets. There is a significant amount of confidence and greed in the markets and I want to advise you all to take advantage of the market conditions, but we are getting to the back half of the general confidence where I am expecting to see a significant amount of downside in the near future. It is too late to attempt to go long, but it is too soon to attempt to short. We are in that weird middle ground where there are no good recommendations other than to tread lightly and look to capitalize on the current market condition.
A couple of recommendations I have in the current market are as followed:
If you are an introduction level trader, look to slow down your allocations and start selling off your positions and holding more cash, the markets can continue to move up from this point, but I would be more confident in the ability for you to retain your cash over the next couple of weeks than to generate significantly more gains by allocating it in these market conditions.
If you are an experienced active trader, look to capitalize on this current market condition as there is a lot of short-term confidence but it is extremely difficult to navigate. Do NOT look to time out any tops or any bottoms in the markets. If an organization is trending, do not fight the trends, and if an organization is dropping, do not attempt to catch a falling knife. The recommendation I would have for you is to continually scalp in these market conditions versus attempting to day trade. It is a lot easier to catch short-term momentum and a quick bounce than attempting to time the top or bottom perfectly.
If you are an average trader, with enough skill to navigate the markets, but are not confident enough to continually scalp throughout the day, are to look for opportunities to short highly overvalued positions and allocate into undervalued equities that you have confidence in. There are many organizations that are highly overvalued right now, which will cause a significant amount of pain for any individuals who are allocating at the new 52-week highs / All time highs. But there are multiple organizations that in the short term, are undervalued for certain reasons, that fundamentally are all solid organizations.
For everyone though, if you are looking to continually hold positions over the next couple of weeks, look to add to your hedges on any and all of your positions. VIX is at lows at the moment where entering into a hedge on any position is an amazing opportunity. The cost of entry is exceptionally low and will result in small losses in the case the markets continue to go up, or the perfect opportunity to cover your losses in the case we come down.
I personally have hedges on all of the long positions I am holding at the moment and have been slowly adding to my general bearish position on $SPY. A couple of positions that I personally am hesitant to get into at this moment are bearish plays on $MSFT, $AMD, and $NVDA. All are what I believe are highly overvalued at this point but realistically can continue to go up assuming there is good news.
My plans in these current market conditions are as followed;
Hold Cash
Cash is going to be king when equities are at relative lows
Scalping
Timing market movements are extremely difficult right now, but I am scalping to attempt to actively take advantage of the confidence in the markets and utilize the cash reserves that I have on hand.
Holding strong equities
Any equity position I have at this point is a position I believe is highly undervalued, or that I have personal confidence in that should be able to sustain any sizable market downturn with relative ease
Cutting laggards
I am already out of every position I personally am not comfortable holding
Hedge positions
For any long equity position that I am heavily allocated into I have hedges open to limit downside risk
Entering puts
I am adding to my puts while VIX is at relative lows, in the anticipation that the markets come down and that I can capitalize on that movement
Being patient
Being patient will suck in the short term in the case that markets continue to move up, but I would rather be safe and watch the markets move up than have a lot on the table as markets come down
With my positions, I am looking to be safe in the grand scheme of things, limit my personal downside exposure in the case that market conditions get worst, but still be able to capitalize on the market conditions in the short term through active scalping and realizing some gains.
Please continue to tread lightly on these market conditions and realize gains while there is confidence in the markets.
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 systems as a result of market conditions. $SPY outperformed everything and it is unfortunate seeing results like this. The long-term portfolio’s performance stayed in line with $SPY’s movement, but our technical analysis underperformed significantly. This was a result of allocations in major tech that underperformed and not allocating to some of the biggest winners. C’est la vie. It sucks but is what it is.
Two things I do also want to bring up about the market game. Responses are accepted until 9:25 am EST (5 minutes before the markets open) so you can respond literally anytime before markets open, but get a bonus added to your score in the case that you respond prior to midnight CST. And secondly, there is currently a discord update slowly rolling out that will impact everyone with time. Discord is changing the way usernames are rolled out, IE I used to be HaiKhuu#0001, but now my Discord username is simply “haikhuu”. Discord removed the numbering system for usernames to decrease impersonations and make things more personalized. We are swapping around our systems to account for this by tracking Discord ID tags versus your username, so if you happen to get pushed that update and are wondering why your score isn’t popping up (like me yesterday), don’t worry about it!
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:
Long-Term Portfolio: -0.55%
Sector Neutral: -0.63%
Variable Sector Neutral: -0.92%
Market Neutral: -1.36%
Variable Market Neutral: -1.43%
Base Algorithm: -1.54%
With market conditions being strong, but allocations being heavily allocated in tech again like yesterday, Asher and I are advising caution when attempting to allocate into these positions today. They are all valid from a technical analysis standpoint, but would rather you all be cautious and only cherry-pick the positions you have confidence in, rather than attempting to allocate heavily and be aggressive in these market conditions. Please be smart and safe if you enter into any of these positions, make sure to practice safe risk management and set stops to limit your downside risk!
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 6/08/2023
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 , $DG , $DIS, $AMZN , $AAPL , $NVDA , $MSFT , $AMD
Position Opportunities:
Ride the momentum in the markets
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 6/08/2023
Initial jobless claims - 8:30 AM ET
Wholesale inventories - 10 AM ET
Notable Earnings for 6/08/2023
Pre-Market Earnings:
Toro Company (TTC)
Signet Jewlers (SIG)
SecureWorks (SCWX)
REV Group (REVG)
Designer Brands (DBI)
After-Market Earnings:
DocuSign (DOCU)
Vail Resorts (MTN)
Braze, Inc (BRZE)
The Duckhorn Portfolio (NAPA)
Planet Labs (PL)
Mission Produce (AVO)
Wrap up
Overall, please just continue to tread lightly in these market conditions, but look to do what you can to maximize your profit potential while there is confidence in the markets. Make some smart plays, realize gains when given an opportunity to do so, and look to protect yourself from the downside risk potential in the markets right now. Lots of people are going to have an extremely tough time in the near future, so make some smart plays now to protect yourself.
Good luck trading, and I hope you all have some fun today!