HaiKhuu Daily Report 8/04/2023
Good morning and happy Friday! Hope you all are excited about today! Market conditions have been very interesting during the after-hours and pre-market sessions. We had major earnings yesterday from some very significant organizations like $AAPL and $AMZN. Apple came down slightly which was unfortunate, but Amazon did phenomenally. $AMZN is up approximately 9% at the time of writing this report, while $AAPL is down approximately 2.3%. This caused a significant amount of movement that happened both last night and this morning. $SPY did reach highs this morning trading above $451, but we have come back below the $450 support level at this time.
This is going to be a crazy day for the markets as a result of all of this movement that has happened. Prepared for an elevated amount of movement, which will include volume, volatility, and many opportunities to realize a significant amount of gains or many opportunities to get burnt heavily.
Please be careful and tread lightly as today is going to be choppy, but filled with momentum that we can capitalize on.
Do not fight any trends, practice safe risk management, and end this week off strong. I would 100% recommend looking into selling some 0-DTE CSPs today, as volatility has increased heavily over the previous couple of days, providing us with a great opportunity to trade and realize some gains in the process.
Good luck trading today and let’s end this week strong!
Thoughts & Comments from 8/03/2023
Yesterday was sort of a wild day for the markets that was filled with general confusion about the movement in the markets. We started off looking exceptionally weak, with $SPY opening at $448.04, down from the previous close of $450.13. We quickly moved up in the first half hour of the day, testing $449 but unfortunately rejecting it at the time. Once we got economic news released, we watched as the markets started to come down, where the selling accelerated, and we made the official low of the day within the first hour of the trading day. $SPY made the official low, trading at $447.38, and down from open.
After making the official low of the day though, it was an amazing opportunity to go long from the bottom and ride the momentum up, as we pushed with some solid momentum for approximately the next three hours of the day. We went into lunchtime with $SPY trading around $449.50 and did not see much movement or momentum there throughout the lull, but as people started to come back from lunch, we watched as there was an increase in buying volume, resulting in the markets breaking back above $450, going green for the day and making the official high of the day trading at $450.79. During that time, markets did look strong and like they wanted to continue to move up, but unfortunately that was not the case.
We did start to come down accordingly during the afternoon, resulting in most of the unrealized gains that were incurred, being unfortunately lost.
$SPY sold off at the start of power hour, and did not have much momentum in the final hour of the day, where we ultimately ended the day with $SPY trading at $448.84, down $1.29, or approximately 0.3%, with an intraday bullish movement of +0.18%.
It was a tough day to actively trade, but the markets provided us with many great opportunities to trade and realize some gains in the process. I hope you all had an amazing time in the process and realized some gains. Conditions could have been better, but C’est la vie. We will take them in these current market conditions.
The crazy movements for the day though, really started to come during the after-hours session. We watched as $AMZN push up almost 10% as a result of a phenomenal earnings call, beating on sales and having strong forward guidance, while $COIN ripped up over 10%, making a high trading at 101.31, before ultimately selling off, to where it is trading now right under the close price of yesterday, slaughtering anyone that purchased any options in anticipation of earnings. $AAPL showed its third straight quarter of falling sales, and iPhone sales dropped more than previously forecasted. This has been a crazy time for everyone and I hope you all are prepared for the insanity of today!
Thoughts & Comments for Today, 8/04/2023
Today will be a wild day for the markets. We are going to see a significant amount of movement in either direction which will either provide us all with an amazing opportunity to actively trade, or we will watch as the markets continue to sell off.
These are the updated daily support and resistance levels on $SPY
Conversion Line Resistance: $453.40
Base Line Support: $447.49
Weak Psychological Resistance: $450
These have been updated since yesterday, and are continuing to slowly show signs that these levels are tightening, increasing the reality that we are going to see some significant movement in the near future. We either will see a significant amount of selling as we break below these levels, or we will break above these levels and continue to move up with relative confidence.
I personally am starting to get nervous, as there is a very high likelihood that we do see a bearish TK cross under on $SPY in the near future, which will provide us with enough bearish momentum to cause us to sell off. We would obviously need to see some significant news to impact us heavily, but with the current market condition, the market is starting to lose momentum and we are starting to see better shorting opportunities get provided to us.
One play that I would highly recommend you look into getting today, is getting some 0-DTE CSP’s on $COIN today. I would not recommend getting any contracts that are ATM, despite this providing you the easiest ability to realize some gains, but this is more so for safety than anything. People are going to be actively trading Coinbase and it will be extremely volatile today, and I would rather us have the ability to realize some gains, with relatively lower risk, that increase your ability to create gains, but at the same time, increase your risk potential. I personally am going to be looking to enter into this position right around open, and the strike will be dependent on how much premium is available at open. Ideally, I can sell some 80-strike CSPs and be out of the position and realize some gains within the first half hour/hour in the day. But again, it ultimately comes down to how much I am able to realize in a short period of time in the position.
Other things you should look out for today, are to simply follow the momentum in the markets, and scalp around the $SPY 450 level. Depending on the direction and momentum in the markets, there will be a significant movement up or down around this level. Watch as the sentiment shifts and chops at this level, and if you are able to catch a breakout or a sell-off, you should be able to realize gains with relative ease scalping there.
Again, one final warning about today. Things are going to be extremely risky trading today. There is an elevated amount of risk allocating into the markets at this point, but there will be many great opportunities to trade. Please look for the best trades available while looking to take on as little risk as possible.
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 systems, as I said I did not have much confidence in the allocations yesterday, not as a result of the systems we’ve created, but as a result of the current market conditions, and I was right on the sentiment. It was unfortunate seeing the results of yesterday be dragged down as a result of the long-term portfolio, but it is fine as the previous day, we were up a significant amount as a result of the LTP, so during the weekly recap, things will at least average out accordingly. C’est la vie, and let’s see what today has in store for us!
To get an in-depth analysis of our algorithms' performance, check out Asher’s Report!
The results of yesterday are as followed:
Baseline:
$SPY: +0.18%
Our Results:
Sector Neutral: +0.53%
Variable Sector Neutral: +0.44%
Long Term Portfolio: -0.52%
Base Algorithm: -0.65%
Variable Market Neutral: -0.71%
Market Neutral: -0.84%
With today being another confusing day for market conditions, I wouldn’t recommend allocating too heavily to the markets as a result of the extra risks that will be involved with trading today. All of these positions are valid from a technical analysis standpoint, but again, there is an elevated amount of risk in attempting to trade any of these stocks today. Please make sure to practice safe risk management when allocating to any of these positions and do the proper due diligence prior to entering into anything. Limit your downside risk and have a great time in the process of everything.
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 8/04/2023
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 , $COIN, $AAPL , $META , $TSLA , $AMZN , $SOFI , $NVDA
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 8/04/2023
US Nonfarm Payroll - 8:30 AM ET
US Unemployment Rate - 8:30 AM ET
US Hourly Wages - 8:30 AM ET
Notable Earnings for 8/04/2023
Pre-Market Earnings:
fuboTV (FUBO)
Nikola Corp (NKLA)
Fisker (FSR)
Enbridge (ENB)
Dominion Energy (D)
Cinemark (CNK)
Cboe Global Markets (CBOE)
Wrap up
Overall, this is going to be an interesting day for the markets. Do what you can to realize some gains while trading today, but understand the amount of risk that involved with trading today. Look to sell some highly out-of-the-money 0-DTE CSPs today that have zero chance of getting hit or tested, and have a great time in the process. Be smart, be safe, and realize some gains!
Good luck trading, and I hope you all have an amazing weekend!