HaiKhuu Daily Report 8/03/2023
Good morning and happy Thursday! Markets are starting to heat up, so I hope you all are ready for what should be a fun time. $SPY has broken below the $450 support level during the pre-market session and there is a great chance for us to retain this level until the markets open. I am personally expecting to see a continuation of this bearish momentum in the markets, but that does not mean that we will not chop around and fake people out in the process. It would not surprise me to see us come back up and test $450 again and continually chop around at that level. We ultimately have to pick a direction on the markets soon, but it looks like we have some more bearish downside in the near future. I’ll talk about my sentiment more later in the report, but just make a note about the updated support & resistance levels!
SPY Daily Supports:
Conversion Line Resistance: $453.70
Base Line Support: $446.93
Weak Psychological Resistance: $450
If we end up between psychological support and conversion line resistance, that is some weak bullish momentum, if we break above the conversion line we will have a stronger bullish sentiment, but on the flip side, we will have some weak bearish momentum between the psychological resistance and baseline support, where if we break below baseline, there will be some stronger bearish sentiment.
Let’s see where the markets ultimately take us for the day and plan accordingly! Tread lightly on these market conditions and please just be smart in the process.
Good luck trading today and let’s see what the markets have in store for us!
Thoughts & Comments from 8/02/2023
Yesterday was quite a bloody day for the markets with a significant amount of bearish momentum right from the market open.
We started the day with $SPY trading down, opening at $453.20, down significantly from the previous close of $456.48. Markets were looking exceptionally weak at that time and we quickly fell right as the markets opened. There was some slight opportunity to move up, as we made the official high of the day in the first candle yesterday, trading at $453.52, up a staggering $0.32 from open. With that insane bullish momentum in the markets, it was hard not to be extremely optimistic about the opportunities for the day (sarcasm).
The markets looked exceptionally bearish throughout the entire morning, where we continued to come down accordingly, making the first official low trading right at $450 during the lunchtime lull as there was not much momentum or volume in the markets. Everything was looking disgusting and did not provide many great opportunities to trade, outside of holding general bearish allocations in the markets.
The markets did pick up slightly as people were coming back from lunch, but really did not have enough momentum in the markets, to make any sort of substantial return, with $SPY moving up roughly $1 from the bottom. There was no room to make any sort of good upside play, and it was not weak enough to make any solid downside entry.
We did start selling off towards the end of the day, where we were continually testing $450 into market close, officially breaking under $450 for a little bit, making the official low of the day with $SPY trading at $449.35. The markets did recover into close, where $SPY officially closed the day right above the $450 resistance level, which is a small sign of confidence, but was nothing of any significance.
$SPY ended the day trading at $450.13, down $6.35 for the day, or down approximately 1.4%, with an intraday bearish movement of -0.67%. It was an absolutely disgusting day for the markets, and I hope you all were able to capitalize on the opportunities that were available to us, but it was a very tough time assuming you were not previously in some bearish allocations that are starting to move in your favor.
Let’s see what today has in store for us, but let’s be optimistic about the potential for the markets, but realistic about these market conditions. Tread lightly and prepare accordingly.
Thoughts & Comments for Today, 8/03/2023
Today is going to be a wild day for the markets. There is a significant amount of bearish momentum that is negatively impacting the markets right now, and there is a good chance that this momentum is continued over the next couple of days. It would be unfortunate if we did continue to come down, but it is realistically what is necessary in these market conditions mostly as we have only continued to move up blindly over the previous couple of months.
Obviously, I don’t want to be the guy who is overly bearish right now in the markets as this has only been two days of bearish momentum, but we have broken major support and broken below psychological support. In reality, this is just the first sign of possible weakness in the markets. I am not expecting to see a major bearish move until we break the daily baseline support, then that will be a confirmation of a reversal to the downside in the markets, which could lead to increased selling over the next couple of weeks, but until that point, I am not interested in being overly bearish.
The markets still have a significant amount of strength in them at this moment, but we are starting to see a significant amount of downside that will negatively impact the markets if you are not allocated properly.
We have seen a shift on the fear and greed index though, where we have seen the markets shift from extreme greed to normal greed, which is still a sign there is confidence in the markets, but that the confidence is slowing down and people are not as optimistic as before.
This will realistically cause one of two things, either we bounce on the previous support levels mentioned, and markets continue to move up with relative strength, or the markets come down accordingly over the next couple of months. As I said before, my PTs on the markets are skewed at this point. I could see us breaking these support levels and coming down to $420-430 with relative ease, or we could break out and if we continue to rally, we can see new ATH on $SPY by the end of the year. It would not surprise me to see both sides of this rally, but it is just a matter of timing your allocations properly and making sure that you are doing everything that you can to maximize your profits in the meantime.
I personally have been holding a lot of puts against $SPY and have been allocated heavily into some solid staple organizations that will not be heavily impacted by any downside in the tech markets that I am happy about. I am contemplating adding to my $DIS position here over the next couple of days and will be looking for continued opportunities to trade the momentum in the markets. Please just continue to be safe and follow the momentum in the markets. I know I’ve been saying that for a while now, but in the case market conditions do decide to get worst, just continue to watch out for $NVDA as a leading indicator of downside in the markets.
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 absolutely amazing day for our systems. The markets got absolutely shot in the process which was unfortunate, but thankfully our fundamental analysis in the long-term portfolio carried the performance yesterday. I am very happy with the fundamental analysis decimating the markets yesterday and am excited to see what happens in the near future. Today should be a fun day and let’s hope that history repeats itself!
To get an in-depth analysis of our algorithms' performance, check out Asher’s Report!
The results of yesterday are as followed:
Baseline:
$SPY: -0.67%
Our Results:
Market Neutral: +0.34%
Long Term Portfolio: +0.28%
Variable Market Neutral: +0.25%
Base Algorithm: +0.16%
Sector Neutral: -0.16%
Variable Sector Neutral: -0.18%
With today having the same sentiment as yesterday. I would advise caution with these intraday positions. Our systems did phenomenally to out perform the markets yesterday, but I am just concerned about the current market conditions. I know there is confidence in our systems, but I am just not confident in the market conditions at this moment. If you take on any of these allocations, please look to practice safe risk management and limit your downside potential!
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 8/03/2023
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, $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 8/03/2023
Initial Jobless Claims - 8:30 AM ET
US Productivity (Prelim) - 8:30 AM ET
ISM Services - 10 AM ET
Factory Orders - 10 AM ET
Notable Earnings for 8/03/2023
Pre-Market Earnings:
Anheuser-Busch InBev (BUD)
Warner Bros. Discover (WBD)
Expedia (EXPE)
Moderna (MRNA)
ConocoPhillips (COP)
Hasbro (HAS)
Regeneron (REGN)
CIGNA Corp. (CI)
After-Market Earnings:
Amazon (AMZN)
Apple (AAPL)
Coinbase Global (COIN)
Block (SQ)
Airbnb (ABNB)
DraftKings (DKNG)
Amgen (AMGN)
Corsair Gaming (CRSR)
Motorola Solutions (MSI)
Wrap up
Overall, please be smart and safe in these market conditions. Be optimistic to hope the markets move up accordingly, but be realistic with the current conditions the markets are in. There is a lot of downside potential in the markets right now, so it is just a matter of if and when things come down. Tread lightly and capitalize on the momentum in the markets right now!
Good luck trading, and let’s see some blood in the markets!