HaiKhuu Daily Report 8/07/2023
Good morning and happy Monday! Hope you traders all have had an amazing weekend and are prepared for what should be a fun week on the markets! $SPY is looking good as the markets have recovered slightly with the futures session opening up nicely green. We have come down from the top, but any green at this point is what we would consider a win. I personally am expecting to see some chop around these levels until we ultimately decide to break out or break down from this current support level, so please be cautious in these market conditions and do what you can to maximize your profit potential. The current levels on $SPY are as followed:
Conversion Line Resistance: $453.86
Base Line Support/Resistance: $448.25
Weak Psychological Resistance: $450
As of writing this report, we are currently right below the baseline support, which is a bearish sign for the markets, but as I said before, this is a point of confusion for the markets. If we break down, this will be a confirmation of a bearish trend in the markets, so tread lightly and make the right decisions, but do not be greedy or overly optimistic in these conditions.
If we continue to trend down, we will see a bearish TK cross under on the daily chart for $SPY. Watch out for organizations like $NVDA to move heavily toward the downside, as that will be a leading indicator for when the markets will start slipping quickly.
There is a lot of economic news and earnings coming up this week, so if you haven’t prepared, check out Louis’ Weekly Preview!
Good luck trading this week and let’s see what the markets have in store for us!
Thoughts & Comments from 8/04/2023
Last week was an interesting time for the general markets. There were slight moments of bullish momentum in the markets, but there was genuinely an overwhelming amount of bearish momentum that impacted the markets heavily. We started the week off relatively strong, down from the 52-week high, but with $SPY trading above $457. Momentum was relatively slow on Monday, and Tuesday was not much better, until the back half of the day when we quickly started to sell off.
Wednesday was a nasty day for the markets, we saw a significant amount of bearish movement during the pre-market session, where $SPY opened down for the day, and continued to sell off throughout the entire day, where we tested the $450 support level through the back half of the day, breaking below that support a couple of times before ultimately closing right above $450.
Thursday was a slightly better day for the general markets though. We opened the day under $450 and showed lots of signs of weakness in the markets, but as the day progressed, we watched as the markets recovered nicely, and saw slight bullish momentum, closing the day right around $450. After hours though, we watched as Thursday was one of the craziest days, as $AMZN and $AAPL had earnings after hours, where $AMZN pushed up significantly in the process and made people rich in the process.
Friday on the other hand, was an extremely confusing day that was difficult for most traders. We started the day with $SPY opening up nicely green, trading at $450.71, up from the previous close of $448.84, and had some strong momentum from open, where we made the first high of the day, trading right under $452. This at the time was very nice, providing us with an opportunity to trade with confidence. Markets were looking good, until we quickly started to sell off, and made a quick low trading under $450 again, but despite the weakness that was shown in the markets, we watched as there was a significant amount of buying afterward that provided us with some amazing opportunities to ride the momentum back up in the markets.
We continued to push throughout the rest of the morning and into the early afternoon. There was continued buying throughout the lunchtime lull and watched as $SPY made the official high of the day, trading at $452.89. It was a beautiful sight for the markets with a significant amount of confidence that provided us with many great opportunities to trade to the bullish side. Despite this newfound confidence in the markets though, we unfortunately sold off.
The markets slipped in the back half of the day, where the final two hours were bearish and did not provide any opportunity to scalp to the upside. Markets shot down with an accelerated amount of selling, which caused a slight amount of panic in the markets as we broke below support levels with ease to end the day terribly.
We ended the week with $SPY trading at $446.81, down $2.03 on Friday, or down approximately 0.45%, with an intraday bearish movement of -0.87%, and a weekly movement of -10.59%, or being down approximately 2.32% overall.
It genuinely was a tough time for the markets that causes a lot of issues for the large majority of traders. Hopefully, you all were able to capitalize on the opportunities in the markets, and rode the momentum in the markets, because last week was a week for the bears.
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, 8/07/2023
Today should be a more interesting time for the markets. I am personally expecting to see a significant amount of chop today which is going to be a tough time for the markets. As I said before, we need to decide on which direction we ultimately need to go, but realistically we are at the baseline on $SPY’s daily, which is the last major line of support before we ultimately start to fall off. I am expecting to see the markets provide a significant amount of bearish momentum, but we just need to see the official confirmation of a reversal here at the top. As I said before, things are looking good for a reversal, but it is just a matter of how soon, and how fast we decide on falling. Realistically, I could again, see $SPY coming down to the $420-430 range, dropping approximately 3-5% over the next couple of days/weeks, but it is just a matter of news events that come out, and general sentiment in the markets.
Greed is starting to quickly leave the markets right now, where we are starting to slowly come back to reality in terms of sentiment in the markets, but as I said before, I believe there is significantly more downside ahead of us, prior to watching the markets move up nicely with confidence. The markets are extremely strong at the moment and have a lot of upside potential in reality, but as I’ve been saying, we need more justification for this insane movement up we’ve seen over the previous couple of months, and this earnings season is the first of many which forward guidance is going to be relatively weak resulting in more bearish momentum in the short term.
As I have been saying before, look to follow the momentum in the markets as a lot of people are going to continue to have a difficult time actively trading and navigating the markets. I personally have already exited a lot of my more speculative higher beta plays, and am looking more towards making some bearish allocations in the markets by shorting $SPY, and other organizations that are highly overvalued in my opinion. I know you guys all have already heard me say this, but I am extremely bearish on $NVDA right now. $NVDA is an amazing organization and is a powerhouse, but in reality, outside of the fact that they are powering this “AI-Hype” they are highly overvalued and in reality need to come down 20-30% to come back to what they should be fairly priced at. This will be a great indicator of the markets and the general momentum and sentiment that will impact people’s performance.
For now though, if you are looking to actively trade, continue to practice safe risk management and do not get greedy. Be careful as there will be a lot of downside in the markets as things continue to sell off, but it is just a matter of how low we can go in the short term without decimating the long-term opportunities in the markets. Just continue to be safe and make smart decisions in the short term, and navigate the markets accordingly as a result of everything.
There are going to be a lot of people that have an extremely difficult time over the next couple of weeks, so do what you can to minimize your risk, take profit where possible, and do not do anything that would ultimately put your portfolio at risk.
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 a tough week for everything. Our systems underperformed in comparison to $SPY, but on a longer-term basis, we are still outperforming the markets by a nice margin. It is unfortunate to see what happened last week, but it is just a matter of situations where conditions were tough and it impacted our performance as a result. Let’s see what happens this week and hope that we are more consistent as a result!
To get an in-depth analysis of our algorithms' performance, check out Asher’s Report!
The results of yesterday are as followed:
Baseline:
$SPY: -1.25%
Our Results:
Sector Neutral: +0.59%
Variable Sector Neutral: -0.36%
Market Neutral: -1.15%
Variable Market Neutral: -1.69%
Long-Term Portfolio: -1.85%
Base Algorithm: -1.95%
With market conditions being confusing right now, I cannot advise for or against any allocations today. Please if you are going to take any of these positions, make sure to do your own due diligence for safety's sake, and make sure you are allocating properly to minimize your risk. I have confidence in our systems and allocations, but I am unsure about these market conditions.
Look to scale into any positions and make sure to set a stop in guaranteed profit as soon as possible so you have a risk-free position. I would rather you not play, or make only a couple of dollars, versus watching the markets get slaughtered and you realize a significant amount of losses as a result. SET YOUR STOPS to limit your downside risk, and please just continue to be smart in these market conditions.
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 8/07/2023
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 , $NVDA, $RIVN, $TSLA, $AAPL, $MSFT, $DIS, $MAT, $SPOT
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 8/07/2023
Consumer Credit - 3:00 PM ET
Notable Earnings for 8/07/2023
Pre-Market Earnings:
Tyson Foods (TSN)
Viatris Inc. (VTRS)
Federal Agriculture Mortgage Corp. (AGM)
KKR & Co. (KKR)
Kosmos Energy (KOS)
After-Market Earnings:
Palantir Technologies (PLTR)
Lucid Group (LCID)
Chegg Inc (CHGG)
Paramount (PARA)
Beyond Meat (BYND)
Him & Hers Health (HIMS)
RingCentral (RNG)
Medifast (MED)
Wrap up
Overall, this should be a fun time for the markets with a significant amount of bloodshed. Please be smart, please be safe, and do what you can to maximize your profit potential. Ride the momentum in the markets and do not fight any trends. Conditions will be confusing for many, so just make the most out of these current conditions before the markets ultimately decide on which direction we pick. Tread lightly and prepare for the worst, but hope for the best.
Good luck trading, and let’s make the most out of these market conditions.