HaiKhuu Daily Report 8/11/2023
Good morning and happy Friday! Markets are looking disgusting today with this being the first candle we’ve seen open under the daily baseline support. Hope you all are doing well and are prepared for what should be an interesting time for the markets as a result of this. I am expecting to see a significant amount of chop, as well as either a bounce back up to the daily support level or this, be the start of the selling I’ve been talking about recently. Please be careful while trading today, follow the market momentum, and do what you can to limit your downside risk at this time. Trading in the markets right now has an elevated amount of risk, so limiting your exposure and preparing accordingly will assist you in remaining consistent and profitable at this time. Tread lightly on these market conditions, but make a note that this is literally the first sign of confirmation of a reversal in the markets, and watch for a bearish TK cross under on the daily charts for an even more significant confirmation. These support lines are starting to get narrow, so this channel is coming up quickly.
This will be an interesting day for the markets, so be smart, be safe, and realize some gains to go on and enjoy the weekend!
The updated $SPY daily levels are as followed:
Conversion Line Resistance: $450.98
Base Line Resistance: $448.51
Weak Psychological Resistance: $450
Thoughts & Comments from 8/10/2023
Yesterday was an extremely confusing and difficult time to trade in the markets. $SPY opened up nicely green for the day and showed a significant amount of confidence in the process. $SPY opened up trading at $448.15, up nicely from the previous close of $445.75. After opening, there was a significant amount of bullish momentum in the markets that could have been capitalized on from the open. $SPY continued to push throughout the first half hour of the trading day, making the official high of the day trading at $451.70, sitting pretty, up over 1% from the previous close. We were above the $450 support level, and have bounced nicely off of the daily baseline support, we reached the daily conversion line resistance and rejected that level, causing us to come down with strength.
After making that high of the day, there was a significant amount of downside momentum that was consistent throughout the rest of the day. We sold off at a consistent rate until the lunchtime lull, where selling was slowed down for a brief moment, and buying picked up before the selling was quickly accelerated and we continued to come down accordingly until the back half of the afternoon.
Right around 2 pm EST, $SPY went on to make the official low of the day trading at $444.70, down 1.5% from the top, and showing a significant amount of weakness in the markets. After the selling slowed down and we made the official low of the day, the markets did bounce back up slightly into power hour, providing us with a slight amount of confidence and hope, but not enough confidence to provide us with enough bullish momentum to recover the losses that were incurred throughout the process.
Power hour was not good at all, as the momentum was gross, being slightly bullish, but with the majority of traders not confident in the conditions. We came down in the final half hour of the day, going red until close, where we saw a quick bounce back in the final 10 minutes of the day.
We ended the day with $SPY trading at $445.91, up $0.16 from the previous close, or approximately 0.04%, with an intraday bearish movement of -0.5%. It was a terrible day for the markets that did provide us with opportunities to trade, but more opportunities to get burnt.
I hope you all were able to capitalize on the opportunities that were available yesterday, as there were many great trades that we were able to spot in real time and capitalize on with ease. It was a wild time, but I cannot lie, it was a great time for the people who could navigate the markets with confidence. I hope anyone that unfortunately realized some losses yesterday, that your losses were not significant, and I want to congratulate anyone who was able to realize a significant amount of gains yesterday because that was a crazy time!
Let’s see what today has in store for us. It’s going to be a wild time and I hope you all are prepared!
Thoughts & Comments for Today, 8/11/2023
Today is going to be another interesting time for the markets. As I said before, we have broken below the major support levels which is a confirmation of a reversal and will result in some selling, but it is just a matter of if everyone else in the markets feels the same way, and believe that there is going to be a significant amount of downside in the markets in a short period of time.
There is going to be a lot of confusion and chop today as a result of that, and next week is going to be even crazier as a result of the monthly expiration. If you are looking to trade today, please be safe and practice safe risk management, as a lot of people are going to realize a significant amount of losses over the next couple of weeks as there is confusion.
Tread extremely lightly and do not fight any trends. If the markets are moving up, play to the bullish side, and continue to increase your stop to limit your downside risk, but at the same time, make sure that you are continuing to follow the trend. If the markets are shifting and coming down, short on the way down, and play it the same way.
Do what you can to increase your profit potential, but just protect your bottom line. That is all that matters at the end of the day. These market conditions are looking extremely difficult and you know that as we see some downside in the markets, emotions start to flow and people start to make irrational decisions. Make some smart allocations in the markets, capitalize on the movement, and just continue to prepare accordingly.
I would not recommend looking into taking on any risks right now, cash is going to be king to allocate when there is fear in the markets and there are signs that $NVDA and many other organizations have a lot of downside potential. As long as you are making wise decisions now, you will be able to reap the rewards and allocate into strong equities at the bottom.
Personally, I am not going to be allocating long into the markets anytime soon until there is a confirmation of a reversal at the “bottom”. I don’t know where that will be, but I will be allocated once there is a confirmation of a reversal, as I am a firm believer that the markets need to continue to come down, but that once we see a reversal, that we are going to see an amazing bullish movement in the markets that people are not ready for. AI has saved the markets in the short term, but in the grand scheme of things, we are due for a large market reversal, and bullish movement into the end of the year.
For today, I will look out for some opportunities to get into some 0-DTE CSPs, but I do not know how many opportunities will be available. If anything, I will sit back and scalp when I have an opportunity to do so. I will not overtrade or force anything right now, and realistically just sit back and relax while watching this market momentum and people freak out, not knowing what to do. I’m happy that I am properly allocated, hedged, and have cash ready to allocate when the time is right.
If you are bored and have some time, I took this practice SIE exam yesterday, and highly recommend that if you have a chance, take it. It is absolutely free and will prepare you if you are looking to go into the financial markets. If you get above a 70% on the practice test, you should be confident in knowing you’d pass the SIE!
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 time for the markets and the algorithm and long-term portfolio’s results were in line with the market results. They were not that hot, but they provided us with an opportunity to trade and beat the markets by a slight margin. I will say that we are still not confident with these current market conditions with the algorithm and will wait until there is a confirmation of any sort of major movement in the markets before we state that we are confident again in you taking on the positions.
To get an in-depth analysis of our algorithms' performance, check out Asher’s Report!
The results of yesterday are as followed:
Baseline:
$SPY: -0.5%
Our Results:
Sector Neutral: +0.01%
Variable Sector Neutral: -0.27%
Market Neutral: -0.32%
Variable Market Neutral: -0.4%
Base Algorithm: -0.43%
Long-Term Portfolio: -0.44%
With what we’ve been seeing in the market conditions, we are not actively recommending any entries in the algorithm today. We are providing these alerts for transparency's sake, but with a lack of confidence in both market conditions and how the algorithm is going to react, I do not have a lot of confidence in these positions today. Please practice the highest level of risk management today and take any of these positions at your own 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 8/11/2023
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 , $DIS, $RIVN, $TSLA, $AAPL, $MSFT, $NVDA, $RBLX
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 8/11/2023
Producer Price Index - 8:30 AM ET
Consumer Sentiment (Prelim) - 10:00 AM ET
Notable Earnings for 8/11/2023
Pre-Market Earnings:
AirSculpt Technologies (AIRS)
New York City REIT (NYC)
Soho House (SHCO)
Silver Spike Investment Corp. (SSIC)
China Automotive Systems (CAAS)
Mammoth Energy Services (TUSK)
Wrap up
Overall, this is going to be a hell of a time for the markets, make some smart decisions, practice safe risk management, and do what you can to realize some gains in the short term. A lot of people are going to have a difficult time in the markets, so take advantage of this confusion!
Good luck trading, and I hope you all have an amazing weekend!