HaiKhuu Daily Report 6/22/2023
Good morning and happy Thursday! I hope you are all having an amazing morning, and unfortunately, the markets are still slowly coming down! At the time of writing this report, $SPY is down about a dollar from its close yesterday, leading into what should be an interesting time for the markets. The one thing that does concern me slightly, is the fact that $SPY has continually dropped over the previous couple of days in the markets, but volatility has come down with it. This is a good sign for people who are waiting to enter into strong equities but is heavily impacting people who are looking to capitalize on the downside in the markets. VIX hit new three-year lows yesterday and has continued to drop with the markets.
We have Jerome Powell speaking to the Senate today, so please be on the lookout for market conditions. Last time JP testified, we watched as the markets came down while he talked to the house, but watched as he made the same remarks the next day to the senate, and watched as the markets continually moved up as a result. There is a possibility that happens again today, so be on the lookout and just be smart and safe while attempting to trade.
Just note to be cautious in these market conditions as we still are still in extreme greed on the fear and greed index, so market conditions can continue to get worst assuming there is not enough buying volume to sustain this movement.
Capitalize on the opportunities that are available to us right now though in these conditions, look to short overpriced equities while you can, and possibly look to go long vix while it is continually hitting new three-year lows.
Good luck trading today and let’s make the most out of these market conditions.
Thoughts & Comments from 6/21/2023
Yesterday was a tough day for the markets with opportunities to trade assuming you timed your position or direction correctly.
Markets opened up looking weak, trading at $436.28, down from the previous close of $437.18, and continued to slip early in the morning. Once Jerome Powell started testifying, we watched as the markets continued to come down, making the official low of the day trading at $434.33 going into the lunchtime session. As people started to trade around Jerome Powell’s statements during lunch, the markets did pick back up and we officially went black again for the day trading right under $436, and once Jerome Powell finished testifying to the House, we watched as there was confusion in the markets, and came down slightly, before moving up and almost going black for the day.
$SPY went on to make the official high of the day trading at $436.99, right under the previous close, but unfortunately came down into power hour and close.
We ended the day with the markets trading at $434.94, down $2.24 for the day, or approximately 0.51%, with an intraday bearish movement of -0.28%. There was a significant amount of chop that heavily impacted the markets and people’s ability to trade, while volatility hit a new low. It is extremely concerning watching the markets continually come down, and volatility coming down with it, but it is just part of being in the markets.
Hopefully, you all were able to capitalize on the opportunities available yesterday and maximize your potential to realize some gains, as there were many opportunities available, but it really was a tough day for the general markets. Let’s hope today is a better day and see what the markets have in store for us!
Thoughts & Comments for Today, 6/22/2023
Today should be another kind of interesting day for the markets. At the moment of writing this report, $SPY is continually coming down, and volatility is slowly moving up. With VIX moving up, it is showing us that people are starting to get more nervous about these market conditions as $SPY has dropped approximately 2% from the top and that there is room for us to continually go down over the next couple of days. It should be an exceptionally interesting time for the markets, as obviously, we want the markets to continually go up, but we need some downside in the meantime to sustain that general movement.
We do have Jerome Powell speaking today, which could be a cause for the markets to move up, but realistically I would advise a significant amount of caution in the markets at this time.
Look to actively scalp to capitalize on movements in the markets versus attempting to allocate into any long equities or positions you personally do not have a lot of confidence in. Continue to be smart as market conditions are going to be extremely tough to navigate over the next couple of weeks.
We realistically can drop another 3-5% on $SPY with relative ease, assuming market conditions allow for it, but it ultimately depends on the demand for equities in the markets and if people are going to continually purchase equities at these relative highs. As we have seen though, the demand for equities when $SPY made that new 52-week high was relatively lessened, and as a result, we have come down from the top, but it is just a matter of how far we are going to drop, how quick we drop, and the reasoning for that drop. I personally believe from an equity standpoint, $NVDA and the major tech that has positively benefited from the “AI-Hype” will fall first, and be the leading indicator for how far down the markets come in the short term.
Once those major techs start slipping at an exponentially quicker rate, be on the lookout for the markets to come down at an exceptionally fast rate.
Until that happens though, I personally am expecting to see a significant amount of confidence in the markets that will result in slight downside momentum, but enough blind confidence to sustain these levels indefinitely.
Expect to see a significant amount of chop in the markets over the next couple of weeks, but when given an opportunity to trade and realize some gains, take advantage of the momentum.
A play I personally am interested in getting into at this moment but are not entering into yet, is selling CSPs on $RIVN at the $12~ strike. I am not entering into this play yet, as I want to see $RIVN drop into the $13~ range prior to getting into this play, hoping that volatility does pick up by the time that I get into this allocation. This should be a solid position, as there will either be an extremely high premium I am going to be able to capitalize on with relative ease, or I ultimately will be reallocated into $RIVN with a phenomenal price. Again, this is not something I am looking to enter into today or tomorrow, but I just wanted to present this opportunity to you all now, so then when the time comes, you all will be able to capitalize on the same opportunity and get $RIVN at a phenomenal price.
Practice safe risk management, take profit on equities you are comfortable with, and have cash reserves to prepare for what is to come in the near future 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 an amazing day for our systems as everything across the board beat out the markets by a large margin. I am very happy to see that every one of our systems was profitable despite the markets being down, and watching as the neutral strategies performed so well in these market conditions. It sucks that our technical analysis underperformed, but it shows the strength of our fundamental analysis carrying the results of yesterday! We are excited to present these results and hope that we continue to outperform in these confusing times in the market.
To get an in-depth analysis of our algorithms' performance, check out Asher’s Report!
The results of yesterday are as followed:
Baseline:
$SPY: -0.28%
Our Results:
Market Neutral: +0.82%
Long Term Portfolio: +0.6%
Variable Market Neutral: +0.53%
Base Algorithm: +0.35%
Variable Sector Neutral: +0.23%
Sector Neutral: +0.17%
With market conditions being at the same point of confusion as yesterday. I personally would advise caution when attempting to blindly buy at open to sell by close on any position as Jerome Powell is testifying to the Senate today. As long as market conditions are optimal, these positions should do phenomenally, but in the case, markets come down, make sure to limit your downside risk and exposure by setting stops on any and all positions.
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 6/22/2023
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 , $VIX , $NVDA, $TSLA , $AAPL , $DIS, $RIVN, $BABA
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 6/22/2023
Initial jobless claims - 8:30 AM ET
U.S. current account - 8:30 AM ET
Existing home sales - 10 AM ET
Fed Chair Powell testifies to Senate panel - 10 AM ET
U.S. leading economic indicators - 10 AM ET
Notable Earnings for 6/22/2023
Pre-Market Earnings:
Accenture plc (ACN)
Darden Restaurants (DRI)
FactSet Research Systems (FDS)
Commercial Metals (CMC)
GMS Inc (GMS)
Methode Electronics (MEI)
After-Market Earnings:
Smith & Wesson Brands (SWBI)
Wrap up
Overall be on the lookout for market conditions as a result of Jerome Powell testifying today. Conditions are primed for the markets to come down at the moment, but with Jerome Powell testifying, markets can go up assuming that people are liking what is being said and his response to each question. Continue to tread lightly in these market conditions and do whatever you can to maximize your profit potential.
Good luck trading, and let’s make the most out of today!