HaiKhuu Daily Report 8/28/2023
Good morning and happy Monday! Hope you all had an amazing weekend and are excited about the current market conditions and are waiting to take advantage of this moment. It is pumpkin spice season, so make sure to go out and indulge in consumerism and get your cult classic to start autumn strong!
Markets are up slightly at the time of writing this report, with $SPY trading just above $440. There is a significant amount of strength in organizations like $TSLA, $BA, $MSFT, and $AAPL, which is a great sign for the general markets. For the current market conditions, $SPY is slightly above the daily conversion line support, but we are still at a point of relative confusion. We are neutral on the fear and greed index, which does not show a significant amount of strength, but it at least shows that there is no fear in the markets yet.
Just note that tomorrow, Tuesday the 29th, is a historically bullish day for the markets. Obviously, take this with a grain of salt, but make the mental note to know that it historically, the markets have been nicely green!
Please continue to tread lightly on these market conditions though, and continue to follow the momentum. This is going to be an extremely difficult time to trade for many, so the best way to trade is by simply following the momentum to take advantage of the current condition. I’ll talk more about this later on in the report but for now…
Good luck trading this week, and let’s make some bank!
The updated $SPY daily levels are as follows:
Conversion Line Support: $439.83
Base Line Resistance: $446.23
Weak Psychological Resistance: $450
Strong Psychological Support: $440
Daily Cloud Support: $432.53
Daily Cloud Resistance: $445.41
Thoughts & Comments from last week
Last week was an extremely interesting time for the overall markets. On an overall basis, $SPY was up last week, but if you played the intraday movement, you would have been destroyed.
Monday was just the start of the choppy and confusing time for the markets. $SPY started the week off relatively weak, with $SPY opening at $437.54, and slipping very heavily throughout the day. We made an official low of the day trading at $435.32 and recovered nicely to make a high of the day trading right above $440, rejecting that level and closing the day trading at $439.34.
Tuesday was not much better as we opened the day with confidence, as $SPY opened at $441.18, above the $440 resistance level, and quickly dropped from open, making the open price the official high of the day, and continued to slip throughout the entire day, making an official low trading at $437.57, trading slightly above where $SPY opened the week, and recovered slightly into close, trading at $438.15.
Wednesday was a beautiful day though as there was a lot of strength leading into $NVDA earnings. We started the day off right under the $440 resistance as $SPY opened at $439.25 and continued to move up throughout the entire day, respecting the daily cloud resistance. We made an official high of the day with $SPY trading at $443.67 and ended the day with $SPY trading at $443.03
Thursday, despite the relative strength in the markets, was the worst day of the entire week. We had $NVDA earnings after hours on Wednesday, which brought a significant amount of strength and confidence back into the markets, but the markets got absolutely slaughtered throughout the day. We made the official high trading at $445.22, respecting the daily cloud resistance, before coming crashing down, breaking under the previously mentioned conversion line resistance, and making a low of the day going into close, with $SPY dropping and closing the day at $436.89. This was a 1.7% intraday downside, which is the most we’ve seen in a short period of time.
Friday was an alright day for the markets with a significant amount of confusion. We started the day off relatively neutral as a result of the bearish momentum we saw on Thursday and opened the day trading at $438.68 and showed relative strength, we quickly moved down throughout the day, making the official low of the day trading at $435 on $SPY, which was the official low of the day. The markets did recover during the back half of the day, where in power hour, we did make the high of the day trading at $441.30, and came down into close, with $SPY closing right under the $440 resistance level, trading at $439.83.
It was an extremely tough week for the markets with a significant amount of chop and momentum in the markets. There were many great trading opportunities, and more opportunities to have an extremely difficult time. I hope you all were able to capitalize on the momentum in the markets, but it was an extremely difficult time for the large majority. $SPY ended the week up $2.43, or up approximately 0.56%, but if you take into account only the intraday movement, $SPY was down 0.90%.
The large majority of traders unfortunately realized some losses attempting to trade last week, and I hope that you were not one of them. If you realized some losses, last week, just know that you are not the only one, and if you were fortunate enough to realize some gains, congratulations and great job. You should be extremely proud of the situation, and be humble knowing that you realized some gains!
Let’s see what today has in store for us, and have some fun this week!
Thoughts & Comments for Today, 8/28/2023
Today is going to be another confusing time for the general markets that hopefully should provide us with some solid opportunities to trade. At the time of writing this report, $SPY has continued to move up and has shown a lot of strength throughout the morning.
I would be extremely cautious while attempting to trade in these current market conditions. There is a significant amount of bullish momentum going into open and a lot of optimism leading in the markets, which is going to be a great sign, but is a huge red flag signaling to us that we all should be extremely cautious and minimize risk whenever possible.
A lot of people who are bullish on the markets though, should do very well attempting to trade today. I would not want to be overly bullish and take on a lot of exposure in these current market conditions but know that we are in a great spot to ride the bullish momentum in the markets and look to take advantage of the opportunities that are available.
For the large majority of traders, I would recommend actively attempting to day trade and scalp some solid equity positions like $TSLA, $MSFT and $AAPL today. And if you want to take on some extra risk, look to play higher beta runner stocks, or tech organizations like $NVDA and $AMD.
But as always, please be extremely safe in these conditions, as there is a significant amount of risk that is involved while attempting to trade at these levels. Practice safe risk management, and look to decrease risk and exposure when given an opportunity to do so. The large majority of traders will have a difficult time being consistent right now and will be impacted very heavily during this time.
Just realize some gains, don’t be greedy, and take your profits when you are happy doing so!
For myself personally, this is going to be another day I do not know how much I’ll be trading, but if I am doing anything, I am simply planning on following the momentum in the markets, and anticipate entering into a day trade in organizations like $TSLA, $MSFT or $AAPL. I may grab indices on a dip, but I do not plan on adding to my personal long exposure for a while.
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SIDE NOTE,
We are doing a $2k to $25k challenge for the month of September in the Discord! If you have not already signed up, check out the challenge room, as this will be an extremely fun competition and highly recommend you all check it out and prepare accordingly! We will be starting this at the beginning of September and should be an extremely fun time in the process!
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 a tough time for the markets and our systems. As I have said before, we are still on a tentative hold on our algorithm and do not recommend attempting to utilize these positions as we are not confident in its ability to outperform the markets in these current indecisive market conditions. We do not endorse these positions at this time but are continuing to provide these to you for consistency's sake and complete transparency on its performance during this downtime. We will see what happens in the near future to see what happens with this system and will keep you all updated on the processes.
To get an in-depth analysis of our algorithms' performance, check out Asher’s Report!
The results of last week are as follows:
Baseline:
$SPY: -0.9%
Our Results:
Sector Neutral: -0.16%
Variable Sector Neutral: -0.42%
Long Term Portfolio: -0.61%
Market Neutral: -0.65%
Variable Market Neutral: -0.89%
Base Algorithm: -1.1%
As I said before, we are still not endorsing these allocations as market conditions have not shifted in the short term and we are still not comfortable with the inconsistencies of the algorithm. We highly recommend you take these with a grain of salt if you are considering any of these positions, and recommend you look at it more so as a confirmation bias on a watchlist of tickers you are interested in, than a list of tickers we recommend you enter.
These positions are all valid from our old testing systems, but we do not endorse these. These are presented for transparency and consistency's sake, so please be careful and limit the risk if you decide to enter into any 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 8/28/2023
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 , $TSLA , $RIVN , $NVDA , $MSFT, $VRA* , $HE*, $RAD*
* = Speculative watch
Position Opportunities:
Follow the momentum in the markets
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 8/28/2023
No economic news scheduled
Notable Earnings for 8/28/2023
Pre-Market Earnings:
Nordic American Tankers (NAT)
Baozun Inc. (BZUN)
Greatbatch, Inc. (GB)
After-Market Earnings:
HEICO Corp. (HEI)
Afya Limited (AFYA)
LifeVantage Corp. (LFVN)
FinVolution Group (FINV)
Riviera Holdings Corp. (RIV)
Wrap up
Overall, this is going to be an extremely interesting week for the markets with a great opportunity to actively trade and realize some gains, but please be careful as there is going to be a lot of confusion and difficulty this week, but we can do what we can to maximize the opportunities that are available. Continue to tread lightly and follow the momentum, but at the end of the day, have some fun!
Good luck trading today, and let’s have a great time!