HaiKhuu Daily Report 8/02/2023
Good morning and happy Wednesday! This week has been absolutely flying by and I hope you all have enjoyed the process! Markets have been treating us nicely, but the pre-market session has been tough. At the time of writing this report, $SPY is down a sizable amount from the market close yesterday, but it was looking significantly worst this morning, where we broke below $452. We are currently trading above $454 at the moment. We have recovered a significant amount since the bottom, but have a long way to go before we recover all of the losses that were incurred.
Today is going to be a tough day, so please be careful. We either are going to recover super nicely and move up accordingly today, or there is going to be a significant amount of selling and downside. As I said before, $NVDA will be the leading indicator for when the markets do start to sell off, so just watch out.
We are below the daily support level on $SPY, which is the first sign of a bearish movement, we either move back above and have confidence, or else prepare for the downside coming.
Updated $SPY support levels:
Daily Conversion line: $455.60
Daily Baseline: $445.66
Psychological Support: $450
Just please be smart in these market conditions and follow the momentum, things are not looking good but there is still a significant amount of confidence in these market conditions.
Good luck trading today and let’s make some bank!
Thoughts & Comments from 8/01/2023
Yesterday was a slow and relatively gross day for the general markets. $SPY started the day red, trading at $456.25, down about a point and a half from the previous close of $457.79.
We did quickly recover a little bit of the losses during the first half hour of the day, where we almost went green, making the official high of the day trading at $457.25. The movement up was not of any major significance, but it was up enough for us to get a little bit of confidence after economic news dropped. Once people started to process the news though, we did watch as the markets sell off, making the first official low of the day testing $455.50.
After, the sentiment was not optimistic, but markets in the grand scheme of things, still have a lot of general confidence in the markets. We recovered slightly after the drop, but the markets were extremely choppy throughout the rest of the day, with no significant movements up, nor movements down.
In the lunchtime lull, we did make the official low of the day trading at $455.50. The sentiment didn’t shift as people were essentially sitting around with no good momentum to trade.
The markets did recover towards the back half of the day which we would consider a relative win, but we still remained red for the day.
We ended the day with $SPY trading at $456.58, down $1.31 from the previous close, or approximately down 0.3%, with an intraday bullish movement of +0.04%. It was a tough time for the general markets with many opportunities to trade, but a lot of difficulty attempting to do so.
Hopefully, you all came out of yesterday relatively unscathed and were not impacted by the significant after-hours movement in the markets.
Thoughts & Comments for Today, 8/02/2023
Today is going to be a confusing day for the general markets. As I said before, today is genuinely going to be a large toss-up for which direction we ultimately decide on going. Obviously, I want the markets to continually move up throughout the day, but if that happens is more of if that happens than when it happens. We were down during the pre-market session, and I am assuming by the time that you read this report, markets are still down.
There is significantly more bearish sentiment in the markets right now, mostly with a significant movement during the after-hours & pre-market sessions. We are seeing some significant movement up during the pre-market session from the lows, but that does not reaffirm a bullish confirmation. It’s like putting a band-aid on a cut, it helps out with everything, but we all know that the cut is still there.
I would advise you all to be extremely careful in these market conditions, mostly as a result of this movement. As I said before, we are either going to reclaim the daily support level and move up nicely between now and close, or this will be an area that the markets are going to chop around for a little before ultimately selling off.
We have needed a correction in the markets for a long time at this point, and this could possibly be the starting sign that the correction is starting. I would not advise you to be overly bearish though at this time, mostly because we have not had any confirmation of a reversal, just a single small movement down, that realistically could be a bear trap/fake out.
We have broken below the daily conversion line support, but just know the last time we did this, there was a 30-point movement up on $SPY.
I would personally recommend just continuing to follow the momentum in the markets. I know I sound like a broken record continuing to repeat this but there really is nothing else we can do right now in terms of looking to actively trade. You can attempt to short, but it is risky until we get that confirmation of a reversal, and you can go long, but there is so much downside risk in the markets right now, that I cannot recommend you go long with any sort of confidence.
The best way to navigate these markets is by selling off a lot of the larger overpriced tech plays that have moved up significantly, and either reallocating into positions that are undervalued that are not heavily correlated with tech or utilizing that capital to continually day trade & scalp.
Scalping is going to be difficult if we are continually chopping around, but I am expecting to see a large movement in a single direction, once we ultimately decide on which direction the markets are going. I do expect to see some downside, so please prepare for this accordingly.
I personally do not know how much downside we are going to be looking at in the markets, but I do personally have a price target on $SPY around $420-430 in the short term, and possibly worst depending on how much selling occurs, but in the same inverse, if the markets decide to push and rally into the end of the year, I could see us breaking above $480 and making a new all-time high. It would not surprise me to see both sides of the spectrum before the end of the year, so please just make some smart decisions between then and now, and do everything you can to maximize your profit potential.
For today, I do not know how much trading I will be doing, but I will be looking more towards capitalizing on the downside risk in the markets right now than attempting to scalp long.
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 our allocations. Our fundamental analysis in the long-term portfolio underperformed which is unfortunate, but I am happy to see that despite the portfolio underperforming, our base algorithm was able to outperform. It is unfortunate, but there is not much we can do when the portfolio the algorithm is built on underperforms. But hey, it is what it is, we aren’t worried or concerned in any way, shape, or form.
To get an in-depth analysis of our algorithms' performance, check out Asher’s Report!
The results of yesterday are as followed:
Baseline:
$SPY: +0.04%
Our Results:
Sector Neutral: -0.03%
Market Neutral: -0.14%
Variable Sector Neutral: -0.18%
Variable Market Neutral: -0.22%
Base Algorithm: -0.25%
Long Term Portfolio: -0.41%
With today being an interesting time during the pre-market session, I am not confident in the market performance. I hope that today will be a better day, but with this pre-market movement, I genuinely am not certain about the performance today. A lot of these positions are relatively safer with lower betas, and the highest allocation for the day being $PEP, at a 0.54 beta, allocating shy of 12% of the portfolio, but I would not be extremely confident blindly allocating into the markets at this point. This is not due to a lack of confidence in the systems, but due to a lack of confidence in the overall markets. So if you decide to take on any of these entries, please make sure to practice safe risk management, limit your downside risk and do what you can to increase your profit potential. Risk-free plays will be the way to guarantee you have the most potential for success while attempting to trade today.
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 8/02/2023
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 , $SOFI, $MAT, $SBUX, $TSLA, $AMD, $NVDA, $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 Investment - $DIS
Economic News for 8/02/2023
ADP Employment - 8:15 AM ET
Notable Earnings for 8/02/2023
Pre-Market Earnings:
CVS Health (CVS)
Humana (HUM)
Generac Holdings (GNRC)
Kraft Heinz Company (KHC)
Yum! Brands (YUM)
Philips 66 (PSX)
Ferrari N.V. (RACE)
DuPont (DD)
CDW Corp (CDW)
WWE (WWE)
After-Market Earnings:
PayPal (PYPL)
Shopify (SHOP)
Qualcomm (QCOM)
Occidental Petroleum (OXY)
Upwork (UPWK)
Robinhood Markets (HOOD)
MGM Resorts International (MGM)
DoorDash (DASH)
Realty Income Corp (O)
EVgo Inc (EVGO)
Wrap up
Overall, this is going to be an interesting time for the markets after the significant movement we’ve seen during the pre-market session. Please make sure to practice safe risk management in the process of everything today. This is going to be a tough day for the markets, so just do what you can to increase your profitability at this time, but the big thing to worry about is protecting yourself against downside risk. Continue to tread lightly on these market conditions.
Good luck trading, and let’s have some fun today!