HaiKhuu Daily Report 7/10/2023
Good morning and happy Monday! Hope you all had an amazing weekend and are ready for what should be an interesting time for the markets. $SPY has been moving up since the markets opened for the futures session, and volatility has slowly come down, but that should result in an interesting yet confusing time for the general markets today. With the way the markets stand at the moment, we are slightly red but it would not surprise me to see the markets move up before open while volatility drops, but there is a very high likelihood that the markets do come down accordingly.
We are still testing daily support, so watch out for that level. The two levels to consider at this moment are $437.75, and $430.26. We are testing the daily conversion line at the moment and need some bearish momentum to break below this point. In the case we break that support, we are going to lose a significant amount of confidence and watch as the markets come down accordingly, or in the case we break out, which there is a very good chance we do, that will be a bullish sign for the markets.
Just note, that both Thursday and Friday of this week are historically bullish!
Obviously, please be careful in these market conditions but do what you can to capitalize on the opportunities that are presented to us right now. There will be a lot of chop making it difficult for many to navigate, but if you are a strong enough trader, you should have a phenomenal time capitalizing on this momentum in the markets.
Good luck trading this week and let’s make some bank!
Thoughts & Comments from 7/07/2023
Last week was an interesting time for the general markets with a significant amount of overall movement that was beautiful for some, but extremely difficult for others.
We started the week off strong with $SPY opening up at $442.87, and showing a lot of strength for the day, despite it being a half day for the general markets. We moved up with strength on Monday and had Tuesday off (4th of July). After the markets came back on Wednesday, we were met with bearish momentum that negatively impacted the performance in the markets slightly, but $SPY showed strength as it recovered all of the losses incurred despite slow bleeding for the rest of the day.
Thursday and Friday were crazy days in the market. On Thursday, $SPY dropped from the close on Wednesday at $443.13, to opening the day trading at $439.40, and came all the way down to break that daily support and making the official low of the day trading at $437.06. VIX popped above $17 and the movement was insane. It provided a significant amount of fear impacting people’s ability to trade, and showed possible signs of weakness in the markets. Lots of the losses that were incurred on Thursday were recovered which was extremely nice, but it did not bring confidence knowing that there was the possibility of breaking support this quickly in the markets.
Friday on the other hand, was even crazier with the general movement of the day. We opened the day down, trading at $438.64, down about a point from the previous close, but showed a significant amount of strength from open. We went up to test $440 once, before rejecting it, before breaking it once again, but with significantly more confidence. Going into the lunchtime lull, we remained around $440, but as people started to come back, we saw an insane amount of bullish momentum providing us with a beautiful opportunity to trade to the long side. $SPY held $440 and continued to push up to make an official high of the day trading at $442.64, up almost 1% from open.
After making the official high of the day though, we watched as there was a significant amount of selling and bearish momentum that negatively impacted the markets. All of the gains that were incurred were lost as we continued to plummet into close. We made an official low of the day just minutes before the markets closed for the week at $438.30, and officially closed the week with $SPY trading at $438.30. Everything incurred on the rally was lost, and people had an extremely difficult time navigating Friday unless they timed their position perfectly, followed the momentum, or got extremely lucky.
It was an interesting week for the markets that provided us with many opportunities to trade, but a difficult time for people who were not fluid while navigating the markets. I hope you all had a great time actively trading and realized some gains in the process of everything. I know that I personally had a great time last week. Let’s see what happens this week and make the most of it!
Thoughts & Comments for Today, 7/10/2023
Today should be a fun time for the general markets. During the futures session, the markets did come down substantially on China news, but since then, the markets have recovered nicely. There is a good chance that by open, the markets would have recovered all of the losses that were incurred and that there is a good opportunity for the markets to continue up throughout the course of the day.
I will continue to say though, that despite these market conditions, I would advise you to be extremely cautious in these market conditions not only because of the location we are at in the markets but as a result of the Asia markets having mixed data impacting our markets. We are at that make-or-break point that I’ve brought up before. In the case that we break and hold below $437.75, I am expecting to see a significant amount of bearish momentum in the markets as people lose confidence, but at the same time, if we hold this level and break out, that is a great sign of confidence for the markets that will provide us with many opportunities to actively trade and realize some gains in the process of everything. I personally am not expecting to see any uber significant movement up or down in the short term, and am expecting a lot of chop in this area until we ultimately find out which direction we are going.
There are many reasons to be bearish right now, but just remember that we are still in extreme greed on the fear and greed index, organizations like Apple, Microsoft, and Nvidia are still looking extremely strong. Tech as an overall sector has been killing it recently and provides a lot of confidence right now. It is right to be bearish on these market conditions, but you have to be fluid with your positions and know that there is both a time and a place to be bearish.
Continue to be fluid with your allocations and look to practice the highest level of risk management when possible, but be smart. Look to follow the momentum in the markets to capitalize on the opportunities that are available to us, look to trade and realize some gains, but at the same time look to hedge your account and look for opportunities to maximize your gains and minimize your losses.
This is not the worst time in the world to look to decrease your allocations and look to possibly reallocate them into positions that are not only safer but are undervalued at the moment. The two positions I personally am very interested in watching over the next couple of weeks are $DIS and $DRI. These both are in my long-term holdings and I have no intentions of selling them in the short term until they hit my personal price target.
If you want to watch any of my allocations, they will be posted live in the HaiKhuu Discord.
HaiKhuu Proprietary Algorithm Report:
Last week was an interesting time for the general markets and as a result, it impacted the performance of our systems. Our fundamental analysis beat our technical analysis, and the markets beat all of our returns over the course of a week. It’s interesting to see how the performance on an intraday basis beat our performance, but if you look at the markets including the after-hour movements, our intraday system beat out the markets by a sizable margin. It is what it is though, these conditions have been interesting and difficult to navigate in the short term and one week of performance shouldn’t impact confidence at all. The losses incurred were also relatively minimal which is phenomenal in the grand scheme of things.
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: +0.5%
Our Results:
Long Term Portfolio: -0.07%
Base Algorithm: -0.18%
Variable Market Neutral: -0.54%
Variable Sector Neutral: -0.56%
Market Neutral: -1.04%
Sector Neutral: -1.34%
With market conditions being at an interesting spot, please be careful with positions as there is that consistent chance that the markets sell off at these levels. I do not believe it will happen in the short term, but I would rather warn you all now than blindly lose some money and are upset about the losses. If you enter into any of these positions, as always, make sure to do your own due diligence and practice safe risk management in the process of everything. Set stops to limit your downside risk and take advantage of these systems that are in place now!
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 7/10/2023
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 7/10/2023
US Wholesale Inventories and Sales MoM - 10AM ET
Fed’s Barr Speaks - 10AM ET
Fed’s Mester and Daly Speak - 11AM ET
NY Inflation Expectations - 12PM ET
Notable Earnings for 7/10/2023
Pre-Market Earnings:
Helen of Troy Ltd. (HELE)
After-Market Earnings:
CalAmp Corp. (CAMP)
PriceSmart Inc. (PSMT)
Saratoga Investment Corp (SAR)
VOXX International (VOXX)
WD-40 Co. (WDFC)
Wrap up
Overall just be smart while trading this week and take into account the fact we are at a make or break point in the markets. We can break out with a significant amount of confidence driving the markets to new all time highs, but there is a higher chance of us breaking this support level at this point and resetting some of the gains that were incurred before we go absolutely crazy and push into the end of the year. Make sure to practice safe risk management and don’t be greedy in the markets.
Good luck trading, and let’s have some fun this week!