HaiKhuu Daily Report 6/20/2023
Good morning and happy Tuesday! Hope you had an amazing long weekend! $SPY is currently down at the time of writing this report, and it looks like volatility is slowly picking up. We have seen some organizations dip in the pre-market session, but we have organizations like $TSLA and $NVDA that are moving around during the pre-market session outperforming the large majority of positions.
We still are in extreme greed on the fear and greed index, and I have started to see more people being less optimistic about these current market conditions, so look to continually capitalize on the opportunities that are presented to us, but tread lightly on these market conditions as the markets are in a weird point right now. Lots of traders want the markets to continue to move up, but confidence and buying are not at the levels where we are able to sustain this movement. Take this all with a grain of salt, but please just continue to be smart in these current market conditions.
Good luck trading today and let’s hope this is a good week for the markets.
Thoughts & Comments from last week
Last week was an extremely bullish week for the markets with many great opportunities to actively trade. $SPY started the week off looking extremely strong trading at $430.95, with a significant amount of upside potential across the board. $SPY moved up with a lot of confidence in CPI, the Fed’s interest rate decision, and PPI while the markets continually hit new 52-week highs.
There were many opportunities to play to the bull side, as there was a 3% movement up from Monday open to the official 52-week high on Thursday. The official 52-Week high on $SPY is $443.90. The momentum was extremely strong and blindly moving up all the way up until Friday, when we saw a normal amount of downside, mostly after the significant movement up we have seen across the board.
Friday started off strong with the markets opening at $442.95, up from the previous close, of $442.60, but not up significantly to the point of extreme confidence.
The markets continually came down over the course of the day, where there really was no good opportunities to trade to the upside. We did see a slight movement up after $SPY broke below $441 during the lunchtime lull, making a relative bottom and moving back up above $442, but we watched as the markets continually came down to close with no significant reversal at all. This was one of the few days we’ve had over the previous couple of weeks where we ended the day with any real downside.
$SPY ended the week making trading at $439.46, down $3.14 from the previous close on Thursday, or approximately 0.71%, with an intraday bearish movement of -0.81%. $SPY was still up $8.51 last week, or up approximately 2%~, which does bring a lot of confidence back into the markets, but I would again, advise relative caution while trading in these market conditions.
Closing under $440 does show a sign of markets being less confident than previously, but the significant movement up shows that there is still confidence in the markets across the board.
Congratulations to everyone who realized a significant amount of gains in the process of trading last week, and let’s see what happens this week!
Thoughts & Comments for Today, 6/20/2023
Today should be another interesting time for the general markets. $SPY is looking relatively strong after the significant movement we’ve seen in the general markets over the previous couple of weeks. This strength is nice as it is continually providing us with some great opportunities to realize some gains with relative ease, but I would highly advise being careful and treading extremely lightly in these market conditions. As I have said before, we are at extreme greed on the fear and greed index, while market conditions are not as blindly optimal as before.
Look to take advantage of the momentum in the markets while it is here, but please tread lightly, as there will be many opportunities for people to get burnt with ease in these conditions.
Do not look to go long equities at this point, as there are a lot of equities that are extremely overvalued, that if you allocate into them, you will be right as long as market conditions continue to blindly move up, but assuming there is a single shift in market momentum, those who are allocating into these major tech organizations at 52-week highs are going to have an extremely difficult time.
My recommendation for you still will remain the same. Stay away from allocating outside of the normal DCAs that you are entering. Do not look to add a significant amount of long positions at this point, but look to actively day trade and scalp in these conditions to maximize the opportunity to capitalize on this bullish momentum in the markets right now. Being fluid with your allocations allows you to follow this momentum with ease, without providing you much downside risk exposure, as you will not have major downside risk exposure with your allocations.
Practice safe risk management throughout the markets right now, look to hedge positions, and take profits on other positions you are holding. Either look to sell your positions and move on or if you intend on holding your play, sell some ITM-covered calls, at a far enough expiration where you simply will not have to worry about general exposure in the short term, but are able to capitalize on this bullish movement, and in the case the markets come down heavily, you will be able to retain your position, and still have the ability to realize these gains. The worst case scenario is that you watch the position continue up in the short term without you.
Make smart plays in these market conditions, but just prepare for what the next couple of weeks has in store for us in the markets. This historically is a more “dry” time in the markets that will make navigating it extremely difficult. So make some smart plays and simply just follow the momentum 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:
Last week was a great week for the algorithms on an intraday basis. The performance was interesting across the board as the markets outperformed our fundamental analysis in the long-term portfolio, but the base algorithm was able to almost double the returns of the long-term portfolio and provide us with an amazing opportunity to outperform $SPY by a sizable margin. We are happy to present these results to you and hope that you’ve capitalized on these opportunities with us!
We all highly recommend you check out our weekly performance and algorithm updates in Asher’s Report!
The results of last week are as followed:
Baseline:
$SPY: +1.65%
Our Results:
Base Algorithm: +1.9%
Variable Market Neutral: +1.72%
Long-Term Portfolio: +0.99%
Variable Sector Neutral: +0.88%
Market Neutral: +0.16%
Sector Neutral: -0.71%
With market conditions being in a state of bullish confusion, look to take advantage of all of the opportunities that are available to us, but be cautious and practice safe risk management. Allocations are all valid from a technical analysis standpoint, but just because they are valid, does not mean they are correct. Do your own due diligence prior to entering into any of these positions and as always make sure to practice safe risk management and 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 6/20/2023
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, $TSLA , $INTC , $AAPL, $MSFT
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 6/20/2023
Housing starts - 8:30 AM ET
New York Fed President John Williams speaks - 11:45 AM ET
Notable Earnings for 6/20/2023
Pre-Market Earnings:
None Scheduled
After-Market Earnings:
FedEx Corporation (FDX)
La-Z-Boy Incorporated (LZB)
Wrap up
Overall make some good moves while trading this week, but look to take advantage of the opportunities that are available to us on this short week.
Once there is a shift in momentum, capitalize on the downside potential in the markets, but continue riding the wave and strength while it is here.
Good luck trading this week and let’s make some bank!