HaiKhuu Daily Report 8/29/2023
Good morning and happy Tuesday! I hope you all are doing great and are excited about today. $SPY is relatively neutral at this time of writing this report. If this lack of momentum means anything, it means there is general confusion in the markets where nobody knows what is about to happen in the overall markets. This is not a good sign for the overall markets, but it is providing us with an amazing opportunity to trade and capitalize on the general confusion.
Look to actively trade and scalp throughout the day when given an opportunity to do so, but be safe and follow the momentum. When there are signs of a reversal or a confirmation of a trend, make the play accordingly, but do not be overly risky, and protect your bottom line. Be quick with your plays, and do not get greedy.
The bearish TK cross under on the $SPY daily chart is getting stronger, so please take this into account when attempting to allocate long into the markets at this point.
Good luck trading today and let’s make some bank!
The updated $SPY daily levels are as follows:
Conversion Line Support: $439.12
Base Line Resistance: $446.23
Weak Psychological Resistance: $450
Strong Psychological Support: $440
Daily Cloud Support: $432.65
Daily Cloud Resistance: $447.24
Thoughts & Comments from 8/28/2023
Yesterday was a generally confusing time for the overall markets that were relatively neutral, with a significant amount of overall chop in the markets.
$SPY started the day off relatively strong, trading at $442.20, up nicely from the close on Friday at $439.97. We saw that there was a significant amount of bullish momentum in the markets as a result of this nice movement up, as $SPY moved up right from open, and played relatively neutrally for the first hour of the day. We did see the markets move up nicely, making the official high of the day trading at $443.39, before coming down rapidly going into the lunchtime lull.
We watched as the markets made a relative low going into the lunchtime lull trading around $441, and watched as the markets moved back up nicely towards the back half of lunch, as people were starting to come back and buying volume positively impacted the markets. $SPY moved up to test $443 but unfortunately was not able to break above that resistance level. As a result of not being able to break that resistance, we watched as the markets came down nicely, testing the previous low, and making the official low of the day, with $SPY trading at $440.86.
The low of the day was a great opportunity to load up on equities though, as in the final hours of the trading day, we watched as there was a significant amount of bullish momentum that gave us an amazing opportunity to ride the trend. $SPY quickly rallied for the last hour and a half of the day, taking a slight dip during power hour, but continually moving until markets closed. $SPY moved up approximately 0.4% at this time, while $QQQ moved up approximately 0.53%
We ended the day with $SPY trading at $442.76, up $2.79 from the previous close, or up approximately 0.63%, but watched as there was only a 0.1% movement up on an intraday basis. It was a great day to trade with lots of momentum, but extremely difficult for any people who bought at open and held throughout the day. It was a lot of fun trading and capitalizing on the markets yesterday, and I hope you all were able to positively benefit from the movement in the markets.
Let’s see what today has in store for us and have a great time in the process!
Thoughts & Comments for Today, 8/29/2023
Unfortunately is not much to say at this moment about today, but just be extremely cautious as a result of this pre-market momentum. I am assuming that a large majority of retail traders do not know what is going on in the overall markets, nor have a decisive direction that they want the markets to go in the short term. As a result of this, will either overtrade or FOMO into a direction they are not confident in. We are still in the daily cloud on $SPY, and the bearish TK cross-under is getting stronger by the day. It would not surprise me to see a more relatively neutral day for the markets today unless we decide what direction we want to pick as a result of economic news.
This is going to be one of the few days that I will say this, but I am not confident in the market’s ability to pick a decisive movement and will chop around heavily making trading extremely difficult to do consistently with confidence, resulting in a lot of losses to be incurred. If you are attempting to trade today, but do not know which direction you want to take, I would advise relative caution for safety, as a lot of traders are going to lose a significant amount of money attempting to trade without having any conviction in the markets. Simply take positions you have confidence in, or sit on the sidelines and watch the general market momentum while sitting on your hands. I would rather you all sit on the sides, and be upset because you left money on the table than try and force some positions you are not comfortable nor confident in, and realize losses.
We have economic news coming out throughout the day, and as a result, that will provide us with some amazing opportunities to trade, but at the same time, will provide us with many opportunities to get burnt. I would not attempt to allocate in the markets going into any data getting released, but I would advise attempting to trade the momentum afterward, and simply follow the direction in the markets. This is obviously a lot easier said than done, but if done properly, you will be able to capitalize on the momentum after the event, without taking on any risks going into the data getting released.
I will be watching out for a couple of plays as I do have the anticipation of entering a couple of quick trades today around 10 a.m. EST as a result of economic news, but I still do not anticipate entering any long positions in the markets with anticipation of holding. I do have an event I personally have to attend later in the day, so towards the back half of the day, I do not anticipate entering into any positions and will realistically be out of all of my day trades by Noon EST.
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 relatively neutral day for the general markets with not much performance for everything within our systems. It was unfortunate, but not much you can do from a buy-at-open, sell-at-close strategy while the markets remain relatively neutral. We still are on a tentative hold on our algorithm and do not actively recommend following these plays until we have confidence in the market conditions. We will continue to provide these positions and results for transparency and consistency's sake.
To get an in-depth analysis of our algorithms' performance, check out Asher’s Report!
The results of yesterday are as follows:
Baseline:
$SPY: +0.1%
Our Results:
Base Algorithm: +0.04%
Long Term Portfolio: +0.03%
Variable Market Neutral: +0.01%
Market Neutral: -0.04%
Sector Neutral: -0.04%
Variable Sector Neutral: -0.13%
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 8/29/2023
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, $MSFT , $AAPL , $DIS , $T, $VFS* , $VRA*
*= 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 8/29/2023
S&P Case-Shiller Home Price Index - 9:00 AM ET
US JOLTS Job Openings - 10:00 AM ET
US CB Consumer Confidence - 10:00 AM ET
Notable Earnings for 8/29/2023
Pre-Market Earnings:
NIO Inc. (NIO)
Pinduoduo Inc. (PDD)
Best Buy (BBY)
Big Lots (BIG)
Bank of Montreal (BMO)
J.M. Smucker Co. (SJM)
Bank of Nova Scotia (BNS)
After-Market Earnings:
Hewlett Packard Enterprise (HPE)
HP Inc. (HPQ)
Box, Inc (BOX)
Ambarella Inc. (AMBA)
American Woodmark Corp. (AMWD)
Wrap up
Overall, please just be smart while attempting to trade today. We do not recommend to be overly risky, but look to take advantage of the current market conditions to maximize your profit potential while realizing gains. Do not be greedy, but look to make good plays. If you don’t know about the market conditions and are confused like many will be, do not overtrade, and simply sit on your hands to live another day.
Good luck trading today, and let’s make some bank!