HaiKhuu Daily Report 7/28/2023
Good morning and happy Friday! I hope you all had an amazing night and enjoyed the Tom Sosnoff event yesterday! It was an amazing time and I hope you all enjoyed it. The markets have recovered a significant amount during the pre-market session and are up nicely at the time of writing this report. We are still below the major support levels which is not a sign of confidence, but this movement shows that there opportunity for us to break above those levels and continue to move up with confidence. Yesterday was the first day in almost a month that we’ve closed below the daily conversion line support, so this will be an interesting time for the markets.
Just to update you all, the current support/resistance levels to look out for:
Daily conversion line resistance: $454.74
Psychological support: $450
Daily baseline support: $445.32
I would not be overly bullish nor bearish in these market conditions, but I would wait for a confirmation of a reversal, with us breaking and holding under the baseline support before being bearish with confidence in the markets.
Let’s see what happens today, and see if we are able to break above that previously stated conversion line resistance and move up, or we reject and come down, testing $450 and lower.
Good luck trading today and let’s have some fun!
Thoughts & Comments from 7/27/2023
Yesterday was a genuinely nasty day for the general markets. We opened the day up looking extremely strong, opening the day trading at $458.98, up nicely from the previous close of $455.51. The markets continued to hold that level of strength as we moved up from open, and made a new 52-week high on $SPY. The official high of the day and the 52-week high for the markets was $459.44. This level was not sustained though, as we did continue to come down throughout the rest of the morning after making that high, hovering around $457 for the large majority of the morning. Going into the lunchtime lull, we did start to note as volume slowed down, and $SPY started to move up slightly. We broke back above $458 without a significant amount of confidence for us to capitalize on, but did watch as the markets continue to move up nicely.
As people started to come back from lunch though, volume started to pick up as the markets started to sell off, and once they started to sell off, we dropped extremely quickly. It was unfortunate, but there was not much you could do about it other than calling out the selling and attempting to capitalize on the bearish momentum. I am very proud of the call yesterday, we were able to predict the top perfectly and call the selling off. The only thing that was not accounted for though, was the size of the movement down. I thought that realistically, we would go red for the day, but not as red as we were.
As expected, during the selling we did officially go red for the day, despite being significantly bullish at open, and continued to come down accordingly throughout the rest of the day.
Going into power hour and close, the markets were not looking strong, but there was a quick bounce from the bottom which was great. $SPY reached the official low of the day trading at $451.56 and bounced back up slightly into the close.
We ended the day with $SPY trading at $452.49, down $3.02 from the previous close, or approximately 0.66%, but on an intraday basis, $SPY dropped $6.57 from open, or approximately 1.43%.
It was an absolutely terrible day for the markets with a significant amount of bearish momentum, and the fact that we broke daily support in the process was just the cherry on top. Hopefully, any of your losses incurred yesterday were minimized, and hopefully, you were able to realize some gains actively trading. It genuinely was a difficult day for the markets with a significant amount of risk, but as long as you survived and are able to trade another day, that is all that matters in the grand scheme of things. Let’s see what today has in store for us and make the most of these current market conditions.
Thoughts & Comments for Today, 7/28/2023
Today should be an interesting day for the markets, as I said before, there is going to be a significant amount of both upside and downside potential for the markets today. Either we will break below this daily conversion line and continue to move down with confidence, or we will break out and continue to move up with strength, either way, it’s going to be an interesting time for the markets.
Max pain for the day on $SPY is currently $450, which is not an unrealistic movement down, mostly after seeing the market momentum of yesterday, but it will be extremely difficult to capitalize on that sort of movement without taking on a significant amount of risk, as we can easily move up with confidence, the same way we can easily sell-off. I personally would advise caution when attempting to trade today to minimize risk but look to capitalize on opportunities that are presented to us. There is going to be a significant amount of chop around the daily support level until we pick a direction, and it really is not clear in which direction we are going.
I personally would not attempt to get greedy or allocate too heavily into the markets right now, as equity prices are still extraordinarily high, while there is a significant amount of downside risk in the markets right now. My personal plans for navigating the markets right now, are to simply sit back, watch the market momentum, and scalp when given an opportunity to do so. I do not anticipate spending much time stressing about larger market movements right now, as it is honestly in a very difficult spot to try and time out.
Chop is going to be extremely difficult to navigate in these conditions, and I would recommend that the majority of people sit on the sidelines in case the markets decide to chop for the large majority of the day. Once we ultimately find the direction the market is going, look to simply follow the momentum and don’t fight the trend. The only time I would recommend attempting to capitalize on fighting the current trend is when there are signs of major reversal that we can capitalize on with relative confidence. If that happens, do not be greedy, set stops in profit, and continue to let your position run until you are comfortable and confident taking profit on your play.
Markets are going to be difficult to navigate today, so please just be smart and safe when attempting to trade. Don’t make any irrational movements and genuinely just do what you can to maximize your profits while minimizing your risk.
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 tough day for the general markets and that did show in our performance. The long-term portfolio was able to outperform $SPY by a sizable amount in comparison to the downside we saw with $SPY, and the base algorithm was able to take the LTP and slightly outperform that, so we will take that as an honest win knowing how the performance of the market was. It was a tough day for any intraday strategy, but we are happy knowing that despite the downside in the markets, we were able to outperform it by a sizable amount.
To get an in-depth analysis of our algorithms' performance, check out Asher’s Report!
The results of yesterday are as followed:
Baseline:
$SPY: -1.42%
Our Results:
Sector Neutral: +0.56%
Market Neutral: -0.2%
Variable Sector Neutral: -0.47%
Variable Market Neutral: -0.66%
Base Algorithm: -0.74%
Long-Term Portfolio: -0.98%
Today is going to be a weird day for the markets, positions alerted via our algorithm are all valid from a technical analysis standpoint, but I personally am not the most confident in the market conditions right now. I would take these positions with a grain of salt, not due to a lack of confidence in the algorithm, but a general lack of confidence in the current market conditions. If you enter into any of these positions, make sure to practice safe risk management and do what you can in the short term to maximize your profit potential, while minimizing risk.
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 7/28/2023
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 , $TSLA, $NFLX, $MAT , $DIS, $MSFT , $AAPL
Position Opportunities:
Ride the momentum in the markets
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 7/28/2023
Personal Income/Spending - 8:30 AM ET
PCE Index - 8:30 AM ET
Core PCE - 8:30 AM ET
Employment Cost Index - 8:30 AM ET
Consumer Sentiment (Final) - 10 AM ET
Notable Earnings for 7/28/2023
Pre-Market Earnings:
Exxon Mobile (XOM)
Procter & Gamble (PG)
Chevron Corp (CVX)
Charter Communications (CHTR)
Centene Corp (CNC)
Colgate-Palmolive (CL)
AstraZeneca (AZN)
Sanofi (SNY)
Wrap up
Overall, this should be an exciting day for the markets with a significant amount of momentum that people could easily capitalize on. Look to take advantage of the market momentum and do everything you can to maximize your profit potential. Watch out for a possible sell-off, but continue to capitalize on the opportunities that are available to us. Be smart and safe today, realize some gains, and have some fun!
Good luck trading, and let’s end this week strong!