HaiKhuu Daily Report 8/23/2023
Good morning and happy Wednesday! I hope you all are doing well and are hyped for the market conditions today! Markets are relatively confusing at the moment but are providing us with many opportunities to actively trade! $SPY at the time of writing this report is up slightly but has been trending down through the pre-market session. This will be a very interesting day as there is continued technical resistance in the markets on the daily charts for $SPY, and it looks like we are going to continue to test these levels in the short term.
Please continue to be smart and practice safe risk management while attempting to trade today, and do what you can to maximize your profits, while minimizing your risk. A lot of people are going to be confused by the current market conditions, while others will do extraordinarily well. Do not get greedy, and allocate accordingly.
The one play I am very interested in getting into today is selling CSPs on $PTON that are 2DTE as they have been absolutely slaughtered during their earnings report.
Good luck trading and let’s see what the markets do today!
The updated $SPY daily levels are as follows:
Conversion Line Resistance: $440.56
Base Line Resistance: $446.23
Weak Psychological Resistance: $450
Strong Psychological Resistance: $440
Cloud Support: $443.91
Cloud Resistance: $429.30
Thoughts & Comments from 8/22/2023
Yesterday was a tough day for the general markets with some bearish momentum in the markets. $SPY opened up nicely green for the day, where we showed a significant amount of strength going into market open, despite coming up to major resistance. $SPY was hovering around the $441 level which was the daily cloud resistance, and conversion line resistance going into open, where we opened the day trading at $441.05, up nicely from the previous close of $439.34. This level was significant as there was a lot of resistance on the technical front, but provided us with opportunities to trade and realize some gains in the process. This was a great way to start the day off with some strength, but we had to watch as the markets unfortunately rejected that level right from open, and faked out all of the optimistic traders for the day.
$SPY broke the $440 support level very early on and continued to come down for the entirety of the morning, with some slight bounces giving us some opportunities to trade, but the majority of the day consisted of chop, bearish momentum, and a significant amount of confusion about market sentiment.
Going into lunch, we saw a significant amount of selling, making a relative low trading right above $438, as volume was picking up as people came back, and went back again for the day, trading right above $439. But as expected on a confusing day, the sentiment was optimistic but was quickly met with selling and chop for the rest of the day.
The rest of the afternoon was extremely choppy and did not provide us with many opportunities to trade which was unfortunate, but the reality of the current situation.
Power hour on the other hand, was a more fun opportunity to actively trade, as it did provide us with some solid momentum in the markets which ultimately caused some bullish momentum, which was quickly met again with selling. We started power hour right around $438, and moved up accordingly, going black officially for the day at approximately 3:15 pm EST, but came down to make the official low of the day with $SPY trading at $437.57. That bearish momentum was the final real movement in the markets, as we only continued to slowly move up, and watched as $SPY recovered slightly into close.
We ended the day with $SPY trading at $438.15, down $1.19 for the day, or down 0.27% from the previous close. This movement itself doesn’t sound too significant, but the overall movement for the day was $SPY dropping 0.7% from open. That itself was a very tough and drawn-out process that caused a significant amount of losses in the process.
I hope you all did alright while attempting to trade yesterday and were able to realize some gains in the process of everything. I know personally, I had a difficult time as a result of market movement going against my contracts, but my general equities did alright. So. It is what it is, and I hope you all were able to have a great time trading.
Let’s see what happens today, and make the most out of the opportunities available to us.
Thoughts & Comments for Today, 8/23/2023
Today should be another confusing and interesting time for the general markets. I am not overly bullish or bearish right now, but with the signs that are showing in the markets, I would edge towards being more bearish than bullish in these current market conditions. The bearish TK cross under on the $SPY daily charts is getting stronger and is continuing to show more signs that there is going to be some bearish momentum in the markets. We have rejected the daily conversion line resistance, and as a result, we are continuing to see signs that the markets are primed to fall.
Despite all of this bearish sentiment though, I just want to note the fact that $NVDA has continued to show relative strength in the current marketplace, and can be the saving grace for the current market conditions. We have $NVDA earnings after hours today, and that by itself is going to be enough to either make or break the markets. In my opinion, $NVDA is highly overvalued at this point and has no solid justification for trading this high, but despite this, you all know the saying. “The markets can stay irrational longer than you can stay solvent”, and this is true. Just because $NVDA is highly overpriced right now, does not mean that it cannot continue to move up accordingly on solid earnings and forward guidance.
If $NVDA decides to break out today after hours, that will bring a significant amount of confidence back into the markets that we can all easily capitalize on with relative confidence. That would realistically impact the cycle that we are in and provide us with an opportunity to realize some gains.
If $NVDA decides to sell off today after hours though, that will be a sign that the bearish trend is only beginning in the markets. The whole reason the markets have moved up over the previous couple of months is a result of the “AI-Hype” and the positive bullish strength that we’ve seen as a result of this. There are a significant amount of equities at this moment that are highly overvalued, but are providing us with some amazing opportunities to trade in the short term. But despite this short-term opportunity, we will see a significant amount of bearish momentum as a result of this, when the markets ultimately come down.
I again, would not recommend being overly bullish or bearish in these market conditions, and understand that there is a significant amount of momentum and potential in the markets right now, and I would expect to see a significant amount of chop in the short term until there is a decisive direction that we can call upon with confidence.
Just watch out for $NVDA after hours today, as they will heavily impact the market direction, sentiment, and momentum of the markets for the foreseeable future.
One position that I am very interested in looking into right now, is getting into CSPs on $PTON with a 2DTE. This position is slightly riskier as I would not want to take assignment on $PTON, but if I am given a good enough opportunity to collect a significant amount of premium within two days, I am personally not opposed to this position.
For my personal trades though, I do not know how much trading I will be doing. I do not anticipate entering into anything right now as I am not comfortable nor confident in the current market condition. If anything, I will be looking to actively scalp and trade the momentum in the markets, but I am not opening up any new major allocations, and do not anticipate doing so anytime soon. If anything, I will sit on the sidelines today and study for my exams, while watching the general market momentum, and allocating heavily into day trades tomorrow once we’ve seen how $NVDA impacts the markets.
Please just be smart and safe while attempting to trade today, decrease risk, and realize some gains. I am sure you all will do great, so let’s make sure it happens!
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 great day for the algorithm as a result of the fundamental analysis behind the long term portfolio. Despite these good results, the algorithm did underperform in comparison to the portfolio it was built on. We are happy to see good results, but regardless, we are still not comfortable and confident in the algorithm’s ability to navigate these current market conditions, even though our results are getting better. We do not want to endorse positions that we personally are not comfortable nor confident in, and will keep the algorithm positions on “hold” until we do have that confidence. We are still providing these positions on a daily basis though, for consistency and transparency sake. Please take any of these positions with a grain of salt and understand the conditions we are in!
To get an in-depth analysis of our algorithms' performance, check out Asher’s Report!
The results of yesterday are as follows:
Baseline:
$SPY: -0.70%
Our Results:
Sector Neutral: +0.01%
Variable Sector Neutral: +0.0%
Market Neutral: -0.06%
Long Term Portfolio: -0.16%
Variable Market Neutral: -0.18%
Base Algorithm: -0.26%
With our tests not being concluded yet, we are still not endorsing any of these positions and recommend you take everything with a grain of salt
Utilize this list more so as a watch list & confirmation bias for positions you may be interested in entering, than a blind signal to enter. If you take any of these positions, make sure you are practicing safe risk management in the process and do what you can to maximize your profit potential at this time!
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 8/23/2023
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 , $TSLA , $AAPL , $MSFT, $MAT , $DIS
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 8/23/2023
S&P Flash US Services PMI - 9:45 AM ET
S&P Flash US Manufacturing PMI 9:45 AM ET
New Home Sales - 10:00 AM ET
Notable Earnings for 8/23/2023
Pre-Market Earnings:
Pelton Interactive (PTON)
Advanced Autoparts (AAP)
Kohl’s Corporation (KSS)
Foot Locker (FLL)
Bath and Bodyworks (BBWI)
Williams-Sonoma (WSM)
Abercombie & Fitch (ANF)
After-Market Earnings:
Nvidia Corp. (NVDA)
Snowflake (SNOW)
Splunk Inc. (SPLK)
Autodesk (ADSK)
NetApp (NTAP)
Unifi Inc. (UFI)
Wrap up
Overall, this should be a pretty interesting time for the overall markets that will provide us with an opportunity to trade and realize some gains. Look to take advantage of the current market condition and the momentum in the markets as a result of this. Lots of people are going to be confused in the short term, but there will be many great opportunities to create positions and realize some gains trading today. Let’s make the most out of these market conditions and have a great time in the process!
Good luck trading, and let’s make some bank today!