HaiKhuu Daily Report 8/14/2023
Good morning and happy Monday! Hope you traders all are excited for today and are ready for a confusing time for the markets! $SPY is up at the time of writing this report, but we have officially created a bearish TK cross under on the $SPY daily charts, which is a confirmation of a reversal in the markets. Now it is a matter of seeing if we see this trend continues or if this is one massive fake-out before the markets ultimately run. This will be a confusing time that will ultimately impact people’s ability to actively trade, consistently, with confidence, so watch out as there is going to be some very interesting movement in the markets here in the near future and will provide us with many opportunities to trade.
I will talk more about my sentiment later on in the report, but for now, continue to tread lightly on these market conditions, do what you can to maximize your profitability, and realize some gains. Be fluid with your positions and make sure to practice safe risk management!
Good luck trading today and let’s see what this week has in store for us!
The updated $SPY daily levels are as followed:
Conversion Line Resistance: $448.43
Base Line Resistance: $448.511
Strong Psychological Support: $440
Weak Psychological Resistance: $450
Thoughts & Comments from 8/11/2023
Last week was an interesting time for the overall markets with a significant amount of movement that could have been capitalized on relatively easily but was extremely difficult to navigate in real time. On an overall basis, there was not much movement in the larger markets, as from Monday open to Friday close, $SPY was only down 0.68%, but in between, there was a significant amount of momentum that could have been capitalized on, and watched as choppy market conditions made trading difficult, but fruitful at the same time.
Monday was not a crazy day for the markets, as we saw some slight bullish momentum in the markets, where we broke above $450 with relative confidence, and held that for a short period of time.
Tuesday was crazier, as we saw a significant amount of bearish momentum to start the day off, but recovered nicely back above the daily baseline support, providing us with some false hope about the market conditions.
Wednesday was a choppy day for the markets where it was the opposite of Tuesday, we showed a significant amount of confidence going into open, only to watch a significant amount of chop, where losses were quickly exaggerated, but quickly bought back up, to ultimately come back down and sell off by close.
Thursday was the craziest day for the markets. We saw the markets open up extraordinarily strong on economic news, where $SPY pushed up to the daily conversion line resistance, before rejecting that level and coming down, being one of the largest intraday bearish movements we have seen over a previous couple of weeks. This destroyed confidence in the general markets and caused a significant amount of elevated selling and was possibly the day we can pinpoint that there was that general shift in market sentiment providing us with an opportunity to trade, but an opportunity to watch a shift in market conditions.
Friday was a tough day for the markets. We started the day off extremely bearish, opening the day trading at $443.94, and quickly made a low of the day trading at $443.35, prior to economic news shifting market sentiment and pushing us up to make the official high of the day trading at $446.70. This bullish momentum was not sustained though as we did quickly come back down, and chop around for the rest of the day. We made a relative low towards the lunchtime lull, providing us with an opportunity to trade both the upside and the downside with relative confidence. The markets continued to trickle up throughout the back half of the day, consistently bouncing off the relative low that was made around lunch and was extremely consistent and predictable. We ended the day with $SPY trading at $445.65, down $0.26 for the day, or down approximately 0.06%, with an intraday bullish movement of approximately 0.4%.
As I said before, it was an interesting time for the overall markets that did provide us with opportunities to trade and realize some gains, but it was an extremely difficult time doing so. Let’s see what happens this week, prepare for the worst, but hope for the best in these market conditions.
Thoughts & Comments for Today, 8/14/2023
Today will be a confusing time for the general markets. We had an official bearish TK cross under on $SPY, and have seen multiple signs of markets wanting to come down, but I just want to remind you all, that despite us being bearish at the moment, there is a significant amount of strength in the general markets that will provide us with opportunities to actively trade and realize some gains as a result of this.
Market makers love these market conditions because people are generally confused about which direction they want the markets to go. People that want to be bullish, will not get enough bullish momentum that will cause traders to realize gains, and unfortunately get stopped out for a loss, and people that want to be bearish, will not get enough bearish momentum and cause traders to again, stop out for a loss. This will be a continued cycle until there is a defined direction in the markets, and as a result, will cause a lot of difficulties for people attempting to navigate the markets.
I talked about this last night in the discord noting my personal thoughts on the current market conditions, but I will post them here to recap my thoughts on how to navigate the markets at this point.
I am expecting a significant amount of chop that will make it extremely difficult for the large majority of traders to trade with confidence, and will ultimately stop a lot of people from generating a significant amount of losses in the process. There are many ways that you can navigate the markets right now and no right answer, but there are some ways that will be easier and more consistent in this current marketplace.
One of the few ways to navigate the markets right now is by staying away from more speculative, higher-risk tech stocks, and allocating into undervalued, fundamentally solid plays, that have some reasoning for why they are down right now, and simply investing in them for a larger movement over time. You do not have to stress about today or tomorrow, but just simply hold a great play and let the play work itself out. A good example of this right now is $DIS. They have been dealing with a lot of BS in the short term coming from political nonsense and both the writer and actor strike. As a result of this, $DIS has fallen heavily over the previous couple of weeks. If you buy and scale into this position, and simply hold it until the BS is over, you won’t see a large impact on your position in the case the markets come down on tech-related BS, and will be able to hold the position with confidence and sell with ease as you are comfortable and confident taking profits. You will not get any crazy sort of exponential gain, but you will be able to realize a significant amount of gains in comparison to the overall condition in the markets.
The other way you can capitalize on the current market conditions is the complete opposite of the previous sentiment. That is via trading hard, trading extremely aggressively, and scalping like your life depends on it. By getting quickly in and out of positions, you will be able to capitalize on the short-term trends in the markets, buying on quick dips and scalping the movement up, or selling and shorting into the rips and riding the quick movement down. There will be many opportunities that are presented to us consistently as a result of this, and it is just going to be a matter of timing your position correctly and getting a little bit lucky. If you are able to do this, you will be able to capitalize on quick movements consistently, while not having to worry about any larger exposure in the markets in the case market conditions worsen and are able to realize gains while there is confusion. This will obviously be extremely difficult in the short term, but if you are able to handle the heat, the risk, and the confusion, you will be able to capitalize on these market conditions significantly better than the large majority.
The last is by continuing to DCA into positions with time, and holding until market conditions get better. I would advise staying away from allocations that are involved with tech and investing more in long-term allocations like $GAIN or $JEPI. This is not going to be a sexy play, but will continue to provide you with a consistent allocation providing us with a great opportunity to trade and realize some gains in the process!
Regardless of how you decide to allocate into the markets right now, just remember we are at a point of confusion that will be extremely difficult for the large majority to handle and will cause a significant amount of losses to be incurred. If you end up losing on the markets, don’t forget that you aren’t the only one that is feeling some heat in the short term in the markets, and if you are generating some gains, do not be greedy and be realistic with your allocations.
Continue to realize gains, and prepare for what is going to be a crazy yet extremely fun and profitable time in these current market conditions!
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 an amazing time for the long-term portfolio, but we had an unfortunately rough time with the algorithm. This has been the first time this year that we feel that the algorithm is failing to meet our expectations. The algorithm was able to outperform $SPY by a nice margin last week, but that was a result of a hard carry by our fundamental analysis. We will continue to watch these market conditions until we feel that the algorithm is able to sustain our expectations, and that will come when there is more consistency and direction in the markets. Until then, we are still putting the algorithm on a tentative “hold” but will still provide alerts and results provided from the algorithm for transparency's sake!
To get an in-depth analysis of our algorithms' performance, check out Asher’s Report!
The results of last week are as followed:
Baseline:
$SPY: -0.27%
Our Results:
Long-Term Portfolio: +0.75%
Variable Sector Neutral: +0.47%
Market Neutral: +0.47%
Variable Market Neutral: +0.3%
Base Algorithm: +0.18%
Sector Neutral: +0.13%
With markets not having a decisive movement yet, we are still putting our alerts on hold. Please take these all with an extra large grain of salt and utilize this as an opportunity not as an alert signal, but a way for you to create a curated watchlist of tickers to possibly trade around open. Look for the positions you are comfortable taking while practicing safe risk management in the process. Obviously, make sure you are practicing safe risk management and limit your downside risk as much as possible while taking any of these plays. Again, this algorithm is on hold but we are providing these alerts for transparency's sake!
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 8/14/2023
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 , $AMC, $DIS, $RIVN, $TSLA , $AAPL, $NVDA , $MSFT
Position Opportunities:
Follow the momentum in the markets
Open up hedges for any positions you want to hold
Exit all positions you are not comfortable holding
Watch for a breakdown & hold cash to allocate accordingly at the bottom.
LONG OPPORTUNITIES:
Long-Term Dividend - $GAIN
Long-Term Investment - $DIS
Economic News for 8/14/2023
No economic news scheduled
Notable Earnings for 8/14/2023
Pre-Market Earnings:
JinkoSolar Holding (JKS)
monday.com (MNDY)
Embraer (ERJ)
Sundial Growers (SNDL)
Li-Cycle Holdings (LICY)
Niu Technologies (NIU)
After-Market Earnings:
Suncor Energy (SU)
Canoo (GOEV)
Navitas Semiconductor (NVTS)
Rumble (RUM)
Getty Images (GETY)
The Metals Company (TMC)
Wrap up
Overall, this is going to be an extremely confusing time for the markets, so capitalize on the opportunities that are presented to you, but continue to follow the momentum. Do not fight this trend and prepare accordingly, as people who are not prepared are going to be the ones who have the toughest time.
Good luck trading, and let’s see what happens today!