HaiKhuu Daily Report 6/26/2023
Good morning and happy Monday! Hope you traders all had an amazing weekend and are ready for what should be another interesting week for the general markets. $SPY is down slightly at the time of writing this report, but it is not down anything of any major significance. Expect this week to be extremely difficult for the general markets as a result of chop, but as a result of the chop, look for opportunities to trade and realize some gains.
We have Jerome Powell speaking twice this week, which will impact the way we navigate the markets, but it should not impact us heavily in the process. Make sure to continue to practice safe risk management and tread lightly on these market conditions.
Good luck trading this week everyone and let’s make some bank!
Thoughts & Comments from last week
Last week was an interesting week for the general markets. We saw a significant amount of bearish movement from the 52-week high, and it seems that there is a lot of confidence that is starting to slip from the markets. We started the week out on Monday, with $SPY trading at $443.05, which really was the high of the entire week. $SPY continually came down with no real bullish movement throughout the entire week, and it was extremely difficult to attempt to capitalize on any of the bullish movements in the markets as they were really far and few between. Markets continually came down as volatility in typical irrational fashion, came down too. VIX made a new 52-week low trading at $12.73, the lowest we have seen since pre-pandemic.
Market conditions have been extremely confusing and extremely difficult to navigate over the previous couple of days. People have confidence, but we are seeing a lot of profit-taking in the markets over the previous couple of days.
It did not help that we had Jerome Powell testifying to both the House and the Senate, but it was done at least in a way that did not cause utter chaos for the markets, but we did not see any significant bullish movement as a result of JP testifying throughout the week. It is kind of what it is though. Thursday was a profitable day for the markets ending the day trading at $436.51, and Friday was a lot worst.
On Friday, we watched as the markets opened down a significant amount, trading at $433.21, down from the previous close of $436.51, and did not provide us with many signs of confidence.
The markets did pick up slightly throughout the day, providing us with some opportunities to trade to the bullish side of the markets early in the morning, where if you bought and held any of the dips in the markets, you should have been able to realize some gains, assuming you could hold the position long enough. As people came back from the lunchtime lull, market momentum did pick up, but we were not able to go green for the day. The official high of the trading day was with $SPY trading at $435.06.
After making the high of the day though, we watched as the markets came down significantly in the afternoon, getting rid of all of the positive gains that were incurred. We made an official low of the day trading at $432.47 on that dip.
At least during power hour, we watched as the markets came back slightly from the low of the day, where there was slight bullish momentum going into close, but ultimately at close, we watched as Friday was an extremely tough day for anyone with any general long allocations. $SPY ended the week trading at $433.21, down $3.30 from the previous close, or down approximately 0.76%, with an intraday bullish movement of roughly 0.1% on Friday.
For the overall week though, the markets came down 2.22% or dropped approximately $10 on $SPY.
It was a tough time for the general markets that did not provide us with many opportunities to trade with confidence, but anyone who took a leap of faith and was able to navigate the markets last week, should have had a great time. It sucks that volatility continued to drop with the markets, but you know as I typically say, C’est la vie. Let’s see what this week has in store for us.
Thoughts & Comments for Today, 6/26/2023
Today should be a fun day for the markets. We have broken under the first level of support on the $SPY daily chart, and I am expecting to see us continually inch down to daily baseline support over the next couple of days. Baseline support on $SPY is $426.89, and assuming that level is broken, we will see a dramatic amount of selling. Until that happens though, I personally am expecting to see a significant amount of chop in the process of everything that will make trading difficult.
Navigating the chop itself is not difficult, just find levels of support and resistance and play accordingly to your standard of risk management, the difficulty comes from the fact that markets will not be consistent in the process of trading.
As always, continue to practice safe risk management in the markets at these levels, even though the markets do seem bearish and have lots of opportunities to come down with relative ease, we can see some short bullish movements up that people can capitalize on.
Just continue to follow the trends in the markets and be fluid. As I have said before, I highly recommend that the majority of individuals who are looking to capitalize on the movement in the markets stay away from attempting to allocate heavily into equities at this point, but actively day trade and scalp, to continue getting exposure in the markets and capitalizing on the momentum, without having a significant amount of overhead liability by allocating into the markets and downside risk via holding positions overnight.
I have personally started to allocate to organizations that are away from the tech sector that are solid companies with great fundamentals that I won’t have to worry about in the short term, those two plays right now are $DRI and $DIS.
The one play I am personally waiting to get into at this point is selling CSPs on $RIVN. When the opportunity comes, it will be a phenomenal trade, but I just don’t want to allocate into $RIVN too soon, in case it comes down. Once we are at a point where I personally am extremely comfortable selling CSPs, I will also look to get some extremely long exposure in $RIVN via purchasing 2-3 year out ATM leaps towards the 52-week low.
Be on the look out for when I add to those allocations, but for now, I am just going to continually watch the current market movement and watch for opportunities that are available in the current marketplace.
If you want to watch any of my allocations, they will be posted live in the HaiKhuu Discord.
HaiKhuu Proprietary Algorithm Report:
Last week provided us with an interesting skew within the performance of all of our systems and performance. The long-term portfolio that everything is built on, underperformed last week, but if you look at our results from our algorithms versus $SPY over the course of the week, we outperformed $SPY by a sizable margin. The base algorithm 3x the return of $SPY and had relative strength despite the weakness in the fundamental analysis it was built on. It was a great week for our systems and I hope you all were able to capitalize on the opportunities available with our algorithm!
To get an in-depth analysis of our algorithms' performance, check out Asher’s Report!
The results of last week are as followed:
Baseline:
$SPY: +0.33%
Our Results:
Base Algorithm: +1.02%
Variable Market Neutral: +0.93%
Market Neutral: +0.68%
Sector Neutral: +0.61%
Variable Sector Neutral: +0.24%
Long Term Portfolio: -0.65%
With market conditions being at an interesting point, make sure you are only entering into positions you personally have a significant amount of confidence in. All of these positions are valid from a technical analysis standpoint and as long as market conditions are optimal today, they all should do phenomenally.
As always, make sure to practice safe risk management in the current market and set stops to secure your profits.
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 6/26/2023
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 6/26/2023
Dallas Fed Mfg. Bus. Index - 10:30 AM ET
Notable Earnings for 6/26/2023
Pre-Market Earnings:
Carnival Corp. (CCL)
After-Market Earnings:
None Scheduled
Wrap up
Overall, this should be an interesting week for the markets. During the pre-market session everything is looking primed to take off here in the short term, so let’s see what happens. I would just love to see some significant movement in the general markets providing us with lots of opportunities to actively trade. Hopefully, conditions become more optimal here in the near future and the markets just rip off the bandaid we have so we can continue moving up with a significant amount of confidence.
Good luck trading, and let’s make the most out of this week!