HaiKhuu Daily Report 6/23/2023
Good morning and happy Friday! This has been an extremely quick week for the markets and I hope you all have had an extremely profitable week! Overnight, $SPY has come down and volatility has popped. $SPY is down approximately $2 at the time of writing this report and it seems that confidence is continuing to slowly come down in these market conditions. We still are in extreme greed on the fear and greed index, and it is just a matter of when the markets ultimately start coming down and greed leaves the markets.
Until that time though, continue to capitalize on the opportunities available in the markets via active scalping and day trading as it is providing us with some phenomenal trades and the ability to realize gains with ease.
It is wild to me that volatility has continually dropped in the process of the markets going down. Please be cautious in this marketplace as this means that there is selling, but no fears, which brings confidence into the markets as people are comfortable in these conditions, but as you all know, comfort and complacency in the markets ultimately will lead to fear and panic selling. I don’t know when VIX will pop, but when it does, please be extremely careful as it will be an extremely difficult time for anyone who has not prepared accordingly.
Good luck trading today and I hope you all have an amazing weekend!
Thoughts & Comments from 6/22/2023
Yesterday was a choppy, yet extremely profitable day for anyone who was actively attempting to capitalize on the bullish momentum in the markets.
Markets started off weak trading at $433.99, down from the previous close of $434.94, but showed strength right from open. Going into Jerome Powell testifying to the house, we watched as the markets pumped up and made a relative high trading right under $436. Once he started speaking, we did watch as the markets came back down as quickly as they moved up, and continued to chop around for multiple hours. As Jerome Powell finished testifying, we did see a spike up in the markets again, testing that relative high, but not being able to break through it with confidence.
We watched as people came back from the lunchtime lull, and quickly sold off, where we made a relative low on $SPY trading at $434.48 before continuing to push up through power hour.
During power hour, the markets were extremely profitable and provided us with many great opportunities to actively capitalize on the bullish momentum. We watched as $AAPL lead the charge in the markets and made a new all-time high, trading at $187.04, and the markets loved the movement. VIX dropped to $12.73, making a new 52-week low, which also was a three-year low, reaching the levels we were at prior to the pandemic, which is a point of both concern and confidence in the current equity markets.
$SPY continued to push into the end of the day were we made an official high of the day trading at $436.62, and ended the day trading at $436.51, up $1.57 for the day, or up approximately 0.36%, with an intraday bullish movement of 0.6%.
It was a great day for the markets that did provide us with many phenomenal opportunities to trade. Hopefully, you all were able to capitalize on the momentum in the markets and realize some gains trading yesterday, as it was a tough and choppy time, but provided us with many great opportunities to realize some gains!
Great job to anyone who realized gains trading yesterday, and let’s see what the markets have in store for us today!
Thoughts & Comments for Today, 6/23/2023
Today is going to be a tough day for the markets. The way that it is set up during the pre-market session, is showing that there is a continued lack of confidence leading us all to believe that it is going to be a bearish day, but there is still enough confidence in the markets that in the case people start buying and momentum moves up, we can easily recover the losses that were incurred during the pre-market session and watch as the markets move up accordingly. A lot of the confidence right now is coming directly from the mega-caps, that are continually doing well in these market conditions. $AAPL just hit a new ATH, and organizations like $MSFT are right behind it. All we need is a singular great day for the markets to push us up to the point of extreme confidence in the markets again, and continue this trend of being in extreme greed.
I personally would advise a significant amount of caution in these market conditions, as equities are extremely expensive at this point, and are providing us with many opportunities to not only trade but an opportunity to FOMO into equities at literally the top. I personally would advise against attempting to allocate into these mega-cap stocks at what is literally the top, but in the short term, they provide us with some great opportunities to actively trade and capitalize on short-term movements.
There are only a couple of plays I personally am confident in at this point.
A couple of them are:
Scaling into a short on equities that are overvalued, in the short term, this is a difficult play as you may be wrong in the short term, but are providing you with a phenomenal opportunity to capitalize on the downside when it comes
Adding to your long-term portfolio with highly undervalued equities that are fundamentally solid. The one play I really like right now is $DRI, they had phenomenal earnings but in typical market fashion, it moved irrationally on that news. Another is slowly scaling into $DIS
Starting to open bearish positions on the general markets, I personally have $426 Puts on $SPY, for when we ultimately drop another couple of percent
Looking to sell CSPs on organizations with extremely high volatility. The organization I am thinking of specifically is $RIVN, I am waiting for $RIVN to drop another dollar or so prior to entering into this, with the anticipation that volatility is higher in the process. I am looking to sell something around the $12~ strike, where either I collect a significant amount of premium or am able to get assigned under the 52-week low
Selling equities you’ve been holding that you are up 50-100% on. There is still potential for upside on a lot of these mega caps you are in right now, but there realistically, is more downside presented to us in the markets right now than there is upside potential. Take profit from these plays and relax.
Stay away from swing trading and allocating into overpriced equities, you may be right in the short term, but look to continually capitalize on the momentum in the markets via scalping and day trading.
Continue to tread lightly on these market conditions, as things are less than optimal right now, mostly from an entry standpoint as people are going to be continually becoming more worried about their positions over the next couple of weeks. Take advantage of the opportunities that are available in these market conditions, but the big thing to worry about is protecting your bottom line. Make some smart decisions, make some good plays, and as long as the markets are providing you with consistent returns and you are protected. You are in a good spot.
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 the markets and our systems showed to continually perform in the ways we expected them to. The fundamental analysis underperformed significantly, but the technical analysis we have with the algorithm, despite being built on the same portfolio, was able to match the returns of $SPY. These results are obviously not ideal, but still provide a significant amount of confidence knowing that the systems built, were able to match the returns of $SPY, despite the portfolio it was built around underperforming.
The results of yesterday are as followed:
Baseline:
$SPY: +0.60%
Our Results:
Base Algorithm 0.53%
Variable Market Neutral 0.33%
Variable Sector Neutral 0.22%
Sector Neutral 0.18%
Market Neutral 0.02%
Long Term Portfolio -0.09%
With market conditions being in a state of confused confidence, I would advise caution while attempting to allocate into the markets right now. If market conditions strengthen intraday, these allocations should do great, but in the case that conditions continue to sustain this level or get worst, be extremely careful with any of these positions. They will do well, but you will be taking on risks allocating into these positions. Practice safe risk management and limit your downside risk by setting stop losses and increasing those stops to decrease exposure throughout the trade.
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 6/23/2023
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 , $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 6/23/2023
Fed Bostic speaks - 8:15 AM ET
US S&P Services PMI Flash 9:45 AM ET
Manufacturing PMI Flash - 9:45 AM ET
Composite PMI - 9:45 AM ET
Fed’s Mester Speaks - 1:40 PM ET
Notable Earnings for 6/23/2023
Pre-Market Earnings:
Apogee Enterprises (APOG)
CarMax (KMX)
Wrap up
Overall be smart in these market conditions, and capitalize on the opportunities available to you but tread extremely lightly as confidence is starting to slip. Make sure to practice safe risk management, limit your downside risk, and realize gains when given an opportunity to do so. Continue to scale into shorting highly overpriced equities, and watch for the short-term bearish momentum to play out, we need some sort of catalyst to cause a significant amount of irrational selling, and it is just a matter of time before that happens. Tread lightly and be cautious, but realize some gains when given an opportunity to do so.
Good luck trading, and let’s make some bank today!