HaiKhuu Daily Report 8/18/2023

Good morning and happy Friday! This week has flown by and there has been a significant amount of bearish momentum that we could have capitalized on! I hope you all have been doing well and have capitalized on the opportunities that have been available to us! We are officially in the daily cloud on $SPY and have consistently come down over the previous couple of days. I was half joking about seeing $VIX back at $20 by the end of the week, but it looks like there is a very high probability of happening today.

Please continue to be careful if you are attempting to allocate into the markets at this time, it is going to be extremely difficult to do without a significant amount of confidence, but it is just a part of being in the markets. Continue to navigate the markets accordingly, play with confidence and make sure you are practicing safe risk management. A lot of people are going to have an extremely difficult time, but this will provide you with many great opportunities to trade, and even more opportunities to realize a significant amount of losses. Please be smart and make the most out of the opportunities that are presented to us.

We are at the lower end of Neutral on the fear and greed index, showing us that people are starting to feel fear in the markets, which is an amazing sign for us as this is what we have been waiting for. Please plan accordingly.

Continue to ride the momentum in the markets, and do not fight this trend. Wait until we’ve found a relative bottom before attempting to allocate at the bottom. Let's see what happens over the next couple of days in the markets, and do what we can to have a great time in these market conditions.

Good luck trading and let’s see what today has in store for us!

The updated $SPY daily levels are as followed:
Conversion Line Resistance: $443.03
Base Line Support: $446.90
Cloud Resistance: $440.91
Cloud Support: $427.06
Strong Psychological Resistance: $440
Weak Psychological Support: $430

Thoughts & Comments from 8/17/2023

Yesterday was a tough time for the general markets with a significant amount of overall bearish momentum in the markets as we have broken major support, and have a significant amount of strong bearish momentum in the markets.

We started the day off relatively strong with $SPY opening up green from the previous close, opening the day trading at $440.96. The momentum was looking good during the pre-market session, but man was that the wrong sentiment overall as the markets continued to come down with relative strength for pretty much the entire day.

The markets dropped from the get-go, where $SPY made the official high of the day right at open, trading at $441.41, and slipping the rest of the day. We came down to test $440, and the previous close price, where we chopped around that level for the large majority of the day, making a slight dip during the lunchtime lull, and watched as the markets came back up slightly as people came back from lunch. But the afternoon is where we saw a significant amount of bearish momentum that impacted the markets heavily in the process.

$SPY did recover and get back above $440 for a slight moment around 1 PM EST, but that was the final farewell, as afterward, we sold off, broke $440, and did not look back once. We consistently went to make new official lows of the day, where $SPY sold off over 1% leading into power hour, and making the official low of the day trading at $435.75.

Power hour was not too eventful, where we did see a slight recovery in the general markets, but it was more so limited selling versus active buying. There was not much active movement in the markets at that time, but we did get back and make a relative high trading around $437, before falling back down into market close.

We ended the day with $SPY trading at $436.29, down $3.35 for the day, or approximately 0.76%, with an intraday bearish movement of -1.1%. It was an absolutely bloody day for the general markets that did not set us up with any opportunities. I hope you all were able to survive yesterday and take advantage of the momentum in the markets. It was a great time for some and a terrible time for many more. Lots of great opportunities to trade, and I hope you all have listened to our warnings about the current market conditions, and know that realistically things have been weak and are continuing to be weak in the markets.

Use this as an opportunity to reflect on your trading strategy and capitalize on the opportunities that are available to us accordingly.

Let’s see what happens today, and make the most out of these opportunities!

Thoughts & Comments for Today, 8/18/2023

Today is going to be an extremely interesting time for the markets. As I have been saying, we have been expecting this bearish momentum in the markets, so it ultimately comes down to watching the momentum and capitalizing on everything where possible. I personally do not expect to see too much overall movement in the markets today but am expecting to see a significant amount of chop that will impact the consistency of traders today. If I had to put money on a general direction in the markets though, I would bet that we do continue to come down.

We do need to see a bounce in the short term to fake out some of the hyper-bearish traders in the markets, but we are continuing to see more signs of confirmation of a reversal from the top, and these signify that we can continue to come down over the upcoming weeks.

As I have said before, realistically, we can see $SPY mid $420s, low $430’s which is where we are now. We can easily continue to come down over the next couple of days, but it is just a matter of how much selling we see in a short period of time.

My personal plans for the next couple of days in the markets are as followed:

• Actively day trade and scalp the momentum in the markets

  • This will provide me the opportunity to capitalize on the movement in the markets consistently on a daily basis. These positions will primarily be on general indices, higher beta stocks, and momentum-based plays

• Look for solid value positions

  • These will be the only positions that I personally anticipate purchasing at this time with the intention of holding. If you can find a solid organization that is down in the short term for some major reason outside of the market momentum shifting, that will pass with time, this will underperform in the short term, but provide you with an amazing opportunity to invest and hold over the span of a couple of weeks with relative confidence. This play for me at the moment is $DIS, and I will add in the case I see other opportunities present themselves in the short term

• Holding cash

  • Cash is king, and that statement remains true right now mostly as markets are looking extremely difficult. This will provide liquidity to trade in the short term, as well as provide us an opportunity to invest and allocate accordingly once we’ve hit a relative “bottom” and can capitalize on the market momentum into the end of the year.

I am NOT looking to gamble in these current market conditions. I may look to take on some more “riskier” plays, but none are gambles. These are positions like $VFS and $HE this week. Both are organizations that I play for a certain reason, and am confident I can capitalize on the riskier play because it is at least in my favor. The only gamble that I enjoy taking, mostly in these market conditions, is that there is no cop sitting on the side of the road between Starbucks and the office every morning.

I still believe that going into the end of this year though, we will see some very strong bullish momentum that we should capitalize on, but it is just a matter of getting through this short-term bearish sentiment in the markets before watching out and waiting before allocating too heavily into the markets right now.

Once there is a confirmation of a reversal in the markets, I will obviously let you all know, and we will be able to capitalize on both the upside and downside in the markets. Continue to be smart, practice safe risk management and realize gains when given an opportunity to do so!

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 absolutely disgusting time for the general markets. All of our systems did outperform $SPY on an intraday basis which does provide us with slight confidence, but as we have not concluded our active testing of these market conditions, these alerts are still on a temporary hold, and we do not actively endorse these positions. We are still providing these alerts for consistency and transparency's sake, so please take these positions at your own risk!

To get an in-depth analysis of our algorithms' performance, check out Asher’s Report!

The results of yesterday are as followed:

Baseline:

• $SPY: -1.10%

Our Results:

• Sector Neutral: -0.36%

• Market Neutral: -0.41%

• Variable Market Neutral: -0.53%

• Long-Term Portfolio: -0.58%

• Variable Sector Neutral: -0.59%

• Base Algorithm: -0.68%

With our tests not being concluded yet, but good results yesterday. We still do not recommend these positions with 100% confidence.

As I said before, we are still providing these alerts for transparency’s 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 8/18/2023

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 , $VIX, $NVDA , $AAPL, $TSLA, $MSFT , $RIVN

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 8/18/2023

• No economic news scheduled

Notable Earnings for 8/18/2023

Pre-Market Earnings:

• Deere & Company (DE)

• Xpeng Inc (XPEV)

• Estee Lauder (EL)

• Vipshop Holdings (VIPS)

• CI&T Inc (CINT)

• Sunlands Technology Group (STG)

Wrap up

Overall, this is looking like it’s going to be a tough day for the markets, let's take advantage of this momentum and have a great time in the process. Please make sure you are practicing safe risk management and capitalizing on the opportunities that are available in real-time. This is going to provide us with lots of opportunities to trade and scalp in the short term. So let’s have some fun and make some bank trading today!

Good luck trading, and let’s see some blood in the markets!