HaiKhuu Daily Report 7/07/2023
Good morning and happy Friday! Can you believe it is already Friday? This week has gone by so quickly because of the late start we had and Wednesday feeling like it was Monday! I hope you all are feeling great and are ready for what should be a fun day to end the week. Markets are down ever so slightly at the time of writing this report, but not down significantly to the point of fear or panic.
Continually watch out for $SPY $440 & $437.75 as a breakout/breakdown area, but I think there’s a solid opportunity to actively trade today. This should be a fun day!
This is the first time I’ve said this in a while, but look to sell some 0-DTE CSPs today, VIX is still relatively low, but perspectively in comparison to where volatility has been over the previous couple of weeks, this is the first time I personally am more comfortable and confident with entering into this position.
You will not realize life-changing money from selling these CSPs, but picking up a couple of extra dollars before the weekend will always be nice. I’ll talk about this a little bit later in the report but for now… Good luck trading today and let’s kill it today!
Thoughts & Comments from 7/06/2023
Yesterday was a crazy day for the markets with a significant amount of volatility and movement in the overall markets. Markets opened down significantly, trading under the $440 support, opening the day trading at $439.40, down significantly from the previous close of $443.13. Markets continually slipped throughout the morning until the lunchtime lull, where we made an official low of the day trading at $437.06, and watched as VIX popped up to $17. The initial movement in the day was crazy with a significant amount of bearish movement in the markets that would have been very easy to capitalize on, but difficult to spot in real-time.
After the markets came down and people started to come back from lunch, we watched as the markets recovered all of the losses that were incurred, and watched as $SPY continued to slowly grind up into the end of the day. We did make an official high of the day right above $440, trading at $440.09, but we did not have enough buying nor confidence in the markets to sustain this level, resulting in $SPY coming down to close.
We ended the day with $SPY trading at $439.66, down $3.47 for the day or approximately 0.78%, with an intraday bullish movement of 0.05%.
It was a crazy day for the general markets that provided us all with a significant amount of opportunities to actively trade and realize some gains, I personally closed out my long volatility play and am extremely happy about that exit, and I hope that you all were able to capitalize on the insane bearish momentum in the markets yesterday.
This could be a sign that market conditions are going to come down soon, so for now tread lightly on these market conditions and do what you can to navigate these conditions with confidence.
Thoughts & Comments for Today, 7/07/2023
Today should be a fun time for the markets. As I said before, watch out for these two levels on $SPY today. $SPY $440 and $SPY $437.75. $440 is a psychological resistance level that the markets have to break back above prior to breaking out with confidence, and $437.75 is the daily support, that once that is broken and we close below it, is a sign of bearish momentum coming into the markets. I personally would advise a lot of caution when attempting to pick a direction while attempting to trade today, and the best option would be to remain fluid and follow the momentum in the markets. Do not be hard-struck on picking a direction in the markets and doing whatever you can do to maximize your potential for profits.
As I said before, today will be an interesting day to attempt to sell 0-DTE CSPs and can easily be capitalized on assuming you are attempting to maximize your profit potential. As I said before, you will not be able to realize any significant gains as a result of these 0-DTE CSPs, but you will be able to at least realize some gains by selling some CSPs on higher volatility plays today.
If you are attempting to trade, I would stay away from opening any general 0-DTE naked contracts unless you really are ready to gamble, but in my opinion, right now, there is no clear deciding factor on which direction the markets are going to go. Only risk capital you are willing to lose, and make sure you are practicing safe risk management in the process.
I personally am very interested in entering into scalps today because I do believe we will see a significant amount of chop in the markets and this will be to capitalize on the bullish movement in the markets with confidence. I personally do not want to enter into any more bearish allocations with the current location in the markets right now, as we are at either a breakdown or breakout point. In the case that we move up, I will add to my bearish allocations, but in the case we break down, I am very satisfied with my bearish allocations at this point. As I have said before, earlier in this report. I personally am out of my long volatility play and will be watching out for market movement.
Just continue to be smart in these market conditions as we are in extreme greed in the markets, meaning there is not much more room to go up in terms of confidence in the markets, and that there is a significant amount of room we can come down. We just need some sort of general economic news that would cause that to happen in the short term before we can continually consider the opportunity.
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 interesting day in terms of results. All of the systems outperformed the markets as we dropped in the morning, but the markets overall on an intraday basis did slightly outperform our algorithms. The losses incurred were not of any major significance and all were well within line of the market conditions. Tough day for the systems overall with the markets moving significantly intraday, but I am interested to see what happens today with this new system.
To get an in-depth analysis of our algorithms' performance, check out Asher’s Report!
The results of yesterday are as followed:
Baseline:
$SPY: +0.05%
Our Results:
Long Term Portfolio: -0.1%
Base Algorithm: -0.15%
Variable Market Neutral: -0.19%
Variable Sector Neutral: -0.28%
Market Neutral: -0.3%
Sector Neutral: -0.5%
With market conditions being at an interesting point, look to take on some bullish exposure with some of the larger allocations in the markets, but be smart and safe prior to entering into any of these positions. Make sure to do your own due diligence prior to entering into any of these positions and practice safe risk management in the process of everything. There is going to be a lot of momentum that impacts the markets, so if the markets come down, stop out of your position and move on with life, but in the case the markets continually move up, look to let your winners continue to win and realize some gains as a result of your patience.
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 7/07/2023
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 7/07/2023
U.S. employment report - 8:30 AM ET
U.S. unemployment rate - 8:30 AM ET
U.S. hourly wages - 8:30 AM ET
Hourly wages year over year - 8:30 AM ET
Notable Earnings for 7/07/2023
Pre-Market Earnings:
AZZ Inc (AZZ)
Wrap up
Overall just be smart in these market conditions, it never hurts taking profit when given an opportunity to do so and just continually watch out for daily support on $SPY. There is a good chance that we bounce here, so just follow the momentum and realize some gains when possible. Look to sell some 0-DTE CSPs today and look to maximize your gains while trading today!
Good luck trading, and have an amazing weekend!