HaiKhuu Daily Report 8/17/2023
Good morning and happy Thursday! Hope you all are excited about what is going to be another interesting day for the markets. We are at major psychological support, so expect to see some chop today around $SPY $440, until we pick out a decisive direction! We are up slightly at the time of writing this report, and max pain is $442, so there is a slight bullish edge to the markets right now. Keep this in mind if you are going to actively attempt trading today. Please, as always, be careful and cautious if you are attempting to allocate into the markets at this point of relative confusion, and tread lightly.
A lot of people are going to have an extremely difficult time attempting to trade today, so watch the momentum in the markets and look out for opportunities to scalp.
We are at the daily cloud support, while at strong psychological support, so there is a lot of support in this area in the markets. Either, we will see some relative blood which will be unfortunate, or we will see a nice bounce on technical and psychological support. Keep this in mind while trading.
Do not do anything overly risky at this point, and make sure that you are capitalizing on the opportunities that are available. If you are not able to time out your positions with confidence, then sit back, as this is a point in the markets that if you don’t have confidence, you will have an extremely difficult time navigating the markets and as a result realize some losses.
Good luck trading and let’s see what the markets do today!
The updated $SPY daily levels are as followed:
Conversion Line Resistance: $445.62
Base Line Support: $449.49
Weak Psychological Resistance: $450
Strong Psychological Support: $440
Thoughts & Comments from 8/16/2023
Yesterday was a tough day for the general markets. There were many opportunities to trade, and an overwhelming amount of bearish momentum. The markets were relatively slower moving and the losses that were generated seemed significantly worst than they actually were.
$SPY started the day trading at $442.44, down slightly from the previous close, but we showed opportunities for bullish momentum, as $SPY moved up and made the official high of the day trading at $444.18 extremely quickly, and continued to chop around that level for a large majority of the morning. Going into the lunchtime lull, we were not able to break above that $444 level, as $SPY rejected that level for the third time, and we watched as $SPY slowly, but surely came down throughout the lunchtime lull, to make the first relative low trading right above $441. This level was nicely supported, as we did see some nice bullish momentum leading into the FOMC minutes coming out.
At 2 pm EST, once the FOMC minutes were released, we watched as there was a quick bearish movement in the markets, where we came down slightly to test $441 again, to push up and go black for the day, testing the previous close price, before rejecting that level again and coming down for the rest of the day.
Power hour was a struggle though, we were only down slightly to start, trading at $441.76, down less than 0.2% from open, but there was a significant amount of bearish momentum throughout the entire hour, where we continued to sell off for the large majority of the time, continuing to make new relative lows of the day until close.
We ended the day make an official low trading at $439.54, and ending the day officially with $SPY trading at $439.64, down $3.25 for the day or down approximately 0.73%, with an intraday bearish movement of -0.64%.
It was an extremely difficult day to trade with many opportunities to trade, but it was extremely difficult to capitalize on those opportunities. I hope you all were able to navigate these market conditions with relative confidence and realize some gains in the process, but I cannot lie and say that it was an easy day for many to trade. Lots of people realized losses which is unfortunate, but that’s life and the markets.
Let’s see what today has in store for us and have a great time in the process!
Thoughts & Comments for Today, 8/17/2023
Today should be another interesting time for the general markets. As I said before in the report, we are at a major support level on $SPY and things are looking bullish while writing this report. It would not surprise me in the case we do have an extremely choppy day. Watch out for $SPY $440 and the daily cloud support.
One of two things is going to happen at this level, we either bounce off and continue to have tests against daily resistance levels with the daily conversion line versus the daily cloud support as that channel becomes more narrow, or we ultimately break into the cloud, and continue with our confirmation of a reversal towards the downside.
It would not surprise me if we go either way, but my money is in the short term that we bounce, and move up accordingly between the time of writing this report, and the end of the day, but with enough given time, as there is enough fear in the markets, that in the short term, we will see some more bearish momentum in the markets and continue a break down until there are signs of reversal at any major support levels.
This could possibly be the bottom of this bearish momentum in the markets, there is still a lot of strength in the general markets where it is not the worst opportunity to add, mostly in comparison to the bottom, but I do think that realistically, we are going to see more bearish momentum throughout the next couple of weeks until there is a very clear sign that the reversal is happening. We are currently dead neutral in the fear and greed index at the moment, and I will start to have confidence in a reversal, once we start to see signs of fear easing up, or people starting to get greedy again. This shift can happen at any time, and no one will be able to time out that shift with confidence, but realistically, it is just the nature of being in the markets.
Personally, I do not anticipate allocating long into the markets at this point, and the majority of the allocations that I will be making will be quick day trades or scalps, with relatively tighter stops, with the anticipation of moving those stops up accordingly, to take as much risk off the table as possible.
This is a time in the markets with elevated amounts of both risk and confusion. If you are able to navigate these markets comfortably, you should be able to realize gains with relative ease, but for the large majority of traders, please be careful and cautious right now, as these conditions are going to be extremely difficult to navigate with both confidence and consistency.
Look to take risk off where possible in these market conditions, and only make positions that you personally are comfortable and confident in. Psychology will really impact how you perform not only today but over the next couple of weeks in the markets.
Continue to make good plays, and practice safe risk management!
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 amazing day for both the long-term portfolio and the base algorithm. We are happy to see these results but are still not concluded with our live tests where we are recommending allocations back into the algorithm. But it is very nice to see that both the long-term portfolio and the algorithm did well yesterday. As I have said before, the algorithm’s allocations and recommendations are still on hold and we do not endorse nor recommend entry into these positions until we have concluded our confidence tests, but will still provide these alerts for transparency and consistency sake.
To get an in-depth analysis of our algorithms' performance, check out Asher’s Report!
The results of yesterday are as followed:
Baseline:
$SPY: -0.64%
Our Results:
Sector Neutral: +0.38%
Variable Sector Neutral: +0.11%
Market Neutral: +0.1%
Variable Market Neutral: +0.05%
Base Algorithm: -0.01%
Long Term Portfolio: -0.26%
With our tests not being concluded yet, but good results yesterday. We still do not recommend these positions with 100% confidence. We are still providing these alerts for transparency sake and consistency, and do not recommend active allocations into these blindly. Use this as a watch list for tickers that the algorithm is interested in, but not as a blind allocation that we recommend. Once we have confidence in the market conditions, we will re-open our confidence in these positions with our endorsements. Until then though, take this with a grain of salt and practice safe risk management with any and all of these positions!
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 8/17/2023
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, $MSFT , $TSLA , $AAPL, $RIVN , $NVDA, $WMT
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 / $JEPI
Long-Term Investment - $DIS
Economic News for 8/17/2023
Initial Jobless Claims - 8:30 AM ET
Philadelphia Fed Manufacturing Survey - 8:30 AM ET
US Leading Economic Indicators - 10:00 AM ET
Notable Earnings for 8/17/2023
Pre-Market Earnings:
Walmart (WMT)
Arcos Dorados Holdings (ARCO)
Dole plc (DOLE)
NICE Ltd (NICE)
Bilibili (BILI)
Gambling.com (GAMB)
After-Market Earnings:
Applied Materials (AMAT)
Bill.com (BILL)
Farfetch Limited (FTCH)
Ross Stores (ROST)
Keysight Technologies (KEYS)
Wrap up
Overall, this is going to be a very interesting and choppy day for the markets as we test these major support levels. Hope that we see a breakout and confidence to come back into the markets in the short term, but prepare for in the case we see a massive breakdown and realize losses in the short term as a result. Be careful, be smart, and practice safe risk management. This should be a fun day, so take advantage of the opportunities that are presented to us!
Good luck trading, and let’s see what happens!