HaiKhuu Daily Report 7/06/2023
Good morning and happy Thursday! This week is absolutely flying by and I hope you’ve all enjoyed the markets over the previous couple of days! At the time of writing this report, $SPY is down about $1.50 from the close yesterday and is looking relatively weak. Apple is down, while $MSFT has moved up, and this is going to be an interesting time for the general markets. $SPY is historically bullish today, which will provide us with opportunities to daytrade and scalp, but you all know about these current market conditions, anything can realistically happen and attempt to cause a significant amount of difficulties for everyone. So please continue to tread lightly on these market conditions and make smart decisions while the markets are slowing down.
There is a gap on the daily at the current support level, and the gap may try to get filled, so please keep the number $437.75 in mind, in the case we break below $440, that will be the next level of major support to break through. Baseline support on the daily on $SPY is $430.26, in the case, we break that, watch out for a free fall to daily cloud support. I believe there is a high likelihood of testing support over the next couple of days, and it is just a matter of time until the gaps get filled, so make some smart decisions on how you want to allocate, and just make sure you have a significant amount of confidence in any and all positions you personally are attempting to hold.
Good luck trading today and let’s make some bank!
Thoughts & Comments from 7/05/2023
Yesterday was a tough day for the general markets, which did provide us with many opportunities to trade, but more opportunities to unfortunately get burnt in the process of everything.
To start the day off, $SPY opened at $441.92, down from the previous close of $443.79, and showed a significant amount of weakness in the process. Right from opening though, the markets moved up, where the official low of the day was the open price. $SPY quickly rallied up above $443 and showed strength within the first couple of hours of the day. Getting ready to go into the lunchtime lull, we did officially go green on the day, but only for a brief moment as $SPY hit the high of the day trading at $443.87, being green a fraction of a percent from the previous close.
After making the official high of the day, the markets did slip into the lunchtime lull and continued to drop preparing for the FOMC minutes to get released. Once the minutes were released, we watched as $SPY slowly moved up, and then quickly came down, extremely hard, coming down to approximately $442.50.
Once we made that low of the day, the markets did recover extremely nicely, leading us to almost go green again for the day, coming within cents of being green, before ultimately selling off into the close.
We ended the day with $SPY trading at $443.13, down $0.66 for the day, or approximately 0.15%, with an intraday bullish movement of 0.28%. It was a mild day for the overall market, that did provide us with many opportunities to actively trade and realize a significant amount of gains in the process of everything. Hopefully, you all were able to capitalize on the bullish opportunities in the markets and realized some gains!
Thoughts & Comments for Today, 7/06/2023
Today should be an interesting time for the markets. As I said before, historically this is a bullish day for the markets, but if you showed me the pre-market graph, without taking into account the historical sentiment, I would say that we would most likely come down. I personally do not have the most confidence in these current market conditions and believe that realistically in the short term, there will be a significant amount of difficulties in the markets providing us with opportunities to trade, but not providing us with a lot of confidence in the process.
Watch out for $SPY 440, that will be the first level of psychological support the markets have to drop below before we can start to realistically contemplate the bearish positions. We are coming extremely close to this level, and depending on economic news coming out before opening, there is a chance that realistically we could be there prior to market opening.
Please tread extremely lightly on these market conditions and be fluid with any and all of your allocations. I would personally expect to see a lot of people having a difficult time navigating the markets right now, as there are people that want to continue to be bullish, but there’s not enough strength and buying to cause an overwhelming amount of confidence to sustain itself, and there are people that want to be bearish, but there is not enough weakness in the markets to cause a sell-off. Unless there is news that people are not accounting for that sways the direction of the markets, we should be looking at all of the levels of technical support and using logic prior to deciding what movement will happen in the markets.
I personally am expecting to see a test of $440 today, and in the case that the markets break below $440, I am expecting to see a slow bleed in equities over the next couple of days, until we get to the point of $437.75, which is the daily conversion line support. I would expect to see some chop at that level providing us with opportunities to cause a lot of damage to traders who are negatively impacted by that chop until we see a breakdown point. Once we see that breakdown point, we will come to test the daily baseline support, which is currently at $430.26, and if the markets continue to fall afterward, I realistically can see us coming back down into the $SPY $420-$430 range.
Obviously, I am not saying this to insight any fear into the markets, but I am just saying that to continually let you all know my personal sentiment. I am holding a significant amount of bearish allocations at this point and will be continually adding to them when given an opportunity to do so. I am down on both my long volatility play and puts, but once the markets start coming down, as I have been continually adding to these positions, they should provide me with a significant amount of unrealized gains in the process of everything until I ultimately sell.
I will still continue to actively day trade and scalp when given an opportunity to do so, just to capitalize on the short-term bullish sentiments in the markets, but I personally am not expecting to be able to realize any significant gains while waiting for this to happen.
As the markets come down, and I am looking to exit my bearish allocations, I will shift those allocations to undervalued tech positions that I believe will continually do well while the markets recover.
Until that happens though, I will be continually treading lightly on these market conditions, realizing gains when given an opportunity to do so, and letting my bearish positions continually print in the short term while market conditions are looking less than optimal.
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 tougher day for our systems, but it is what it is. It looks like a lot of losses that were incurred were a result of the fundamental analysis underperforming yesterday, which is a slight concern for the market conditions, but the losses were very reasonable and understandable. The technical analysis underperformed the LTP, which makes sense in a tough market condition but is not something we like seeing. At least both the algorithm and the LTP worked hand in hand. Let’s see what today has in store for the markets and make the most out of it with our systems!
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:
Long-Term Portfolio: -0.17%
Base Algorithm: -0.19%
Variable Sector Neutral: -0.31%
Variable Market Neutral: -0.34%
Market Neutral: -0.48%
Sector Neutral: -0.52%
With market conditions being in an interesting spot, I would advise caution from blindly entering into any of these positions in the short term. I would use this list of allocations to cherry-pick the positions you believe would do the best by finding the largest allocations, and moving down until you find a play that you personally are extremely interested in entering in the short term. The safest larger allocation I personally am interested in watching is $AAPL from this list, but please know that again, market conditions are not the most optimal right now, so only enter into a position you have confidence in, and set stops to limit your downside risk in the short term. Increase that stop to be in guaranteed profit and realize gains when given an opportunity to do so.
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 7/06/2023
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 , $AAPL, $MSFT, $DIS, $RIVN, $NVDA, $TSLA
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 7/06/2023
Initial jobless claims - 8:30 AM ET
U.S. trade deficit - 8:30 AM ET
S&P flash U.S. services PMI - 9:45 AM ET
Job openings - 10 AM ET
ISM services - 10 AM ET
Notable Earnings for 7/06/2023
Pre-Market Earnings:
None scheduled
After-Market Earnings:
Levi Strauss & Co. (LEVI)
Kura Sushi USA, Inc. (KRUS)
Simulations Plus, Inc. (SLP)
Wrap up
Again, just be smart in these market conditions. $SPY is looking weak at the moment, but you all know these market conditions very well. A lot can happen in a very short period of time resulting in a significant amount of gains or losses to be incurred. With the weakness in the markets right now, I do not have a lot of confidence where I personally am extremely excited to attempt to play. I will primarily be holding my bearish allocations and be on the lookout for opportunities to actively day trade to realize some gains in the short term.
Good luck trading, and let’s have some fun today!