HaiKhuu Daily Report 9/06/2023

Good morning and happy Wednesday! This week has been absolutely flying by and I hope you all have had an amazing time! Markets are down slightly at the time of writing this report, and $SPY is back in the daily cloud. It appears we are about to have a bullish TK crossover on the daily, but this may be a possible fake-out. In the same way that there was a bear trap at the bottom just last week, this movement up may be a bull trap in the making. In reality, no one truly knows which direction we are picking, nor what the market momentum will be on a consistent basis. As I have been saying, look at the markets on a day-by-day and trade-by-trade basis. Do not be overly bullish or bearish, and follow the momentum in the markets.

We have broken below the first level of major support, now it is just a matter of which direction we go and ultimately how quickly the markets move as a result.

Do not look to take on a large amount of risk right now in the current market condition, but look to take advantage of the momentum in the markets. Follow trends, allocate wisely, and only trade with confidence.

Good luck trading, make some smart positions, and realize some gains!

The updated $SPY daily levels are as follows:
Conversion Line Support: $444.34
Base Line Support: $445.13
Weak Psychological Resistance: $450
Strong Psychological Support: $440
Daily Cloud Resistance: $450.38

Thoughts & Comments from 9/05/2023

Yesterday was a tougher day for the markets with a significant amount of chop that made it difficult to trade with confidence but provided us with many opportunities to trade. $SPY started the day trading at $450.75, down from the previous close of $451.19. Markets were looking weak going into open, but we had confidence knowing that the markets were trading above the previously mentioned cloud support on the daily, and above weak psychological support.

$SPY moved down quickly from open, to make a relative low trading under $450, and stayed there for the rest of the morning, leading into the lunchtime lull. Markets were quickly bought back up which was nice, and provided opportunities to trade to the upside, but as volume started to slow down, we watched as the markets quickly came back down, and tested $450 again.

As people started to come back from lunch, the markets came down in real-time, breaking back below $450, and remaining in the area for the large majority of the afternoon.

The range intraday was extremely narrow, where we watched as $SPY stayed within an $0.25 range for the majority of the day, creating significant chop and difficulties for a lot of people attempting to trade.

During power hour, we did see a quick drop in the markets with $SPY going from $450.62, to come down and breaking below $450, recovering slightly, to only be sold off into close. At market close, $SPY in the final minute, dropped to make the official low of the day trading at $449.17, and recovered slightly to end the day trading at $449.24, down approximately $2 from the previous close, or down about 0.43%, with an intraday bearish movement of -0.33%.

It was an extremely tough day for the overall markets that did not provide us with many opportunities to actively trade, or realize gains in the process. I hope you all were able to capitalize on the movement in the markets, as it was extremely difficult doing so, and I know that a lot of people had an extremely tough time trading with confidence. So, let’s make the most out of the opportunities that are available to us in the markets today, and try to have a great time in the process!

Thoughts & Comments for Today, 9/06/2023

As conditions are confusing, I am still going to recommend being relatively neutral in these market conditions, not being overly bullish or bearish, but simply following the market momentum. With the way the markets are currently setting up, we are not looking exceptionally strong, or exceptionally weak right now. $SPY is down at the time of writing this report, but we have multiple speakers and economic news coming out throughout the day that will make trading extremely difficult to do consistently.

From an unbiased technical standpoint, it seems that the markets would want to come down, and in reality, I could see the markets make a relative low trading at the daily baseline. We are back at that point of confusion in the market where people do not know realistically if the markets are going to move up with confidence or come down with fear. So please continue to tread lightly as no one truly knows what is going to happen.

This is a risky opportunity but I want to bring it up to you all. Just note that I personally will most likely not partake, but you can look into purchasing cheap hedges on your account right now as VIX is low, or on an even riskier basis, you could go long volatility. Volatility is at a relative low at the moment, and in reality, if the markets come down over the next couple of days, and we see that the markets only continue to move down with fear, volatility is going to skyrocket, providing you with a sizable return on either your puts or on your volatility product.

For myself, I am not looking to take on much risk in the markets right now. I did allocate into $FAZE as a shit-co fun gamble play, but outside of the small position I have there, in reality, I am not looking to take on much risk and exposure at the moment. I have been allocating slowly into $DIS, but outside of that position, I am primarily holding cash, with the anticipation that the markets will come down accordingly on either economic news or tech organizations slowing down, as there is not enough buying momentum in the short term to sustain this movement we’ve seen in the markets.

Once the markets come down, I will be anticipating entries in organizations that I believe will be undervalued at that time, that I can hold with confidence. I do not believe we will see mega-caps come back to their relative lows anytime soon, but I will be consistently looking for organizations with opportunities to allocate into. The only position I am personally entering in these conditions for a swing trade is $DIS. I want to allocate more to the financial sector and tech, but am not comfortable nor confident in these current conditions.

I may get into retailers soon as a significant amount of them have been heavily hit over the previous couple of weeks, the only one I am actively watching for an entry right now is Dollar General ($DG). Out of all of the discount retailers, that is the organization that is the most fundamentally solid and that I have confidence in entering slowly and scaling into. I do not want to enter too heavily at this point, but I will be looking to enter with time and continue to purchase until we hit a relative bottom.

The only active participation I do anticipate making right now is actively trading in the markets, and looking to scalp and day trade when there is confidence intraday. This will be the only significant exposure I anticipate making, and in reality, should be the only exposure you are comfortable and confident in entering at this point.

Please just continue to practice safe risk management mostly in these market conditions and realize gains when given an opportunity to do so. All traders have the opportunity to make money right now, but the smart traders are the ones who are not taking on much risk, and still being able to capitalize on the movement we are seeing. Be careful in these confusing times in the markets, and take advantage of the movement while you can.

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 tough time for the algorithms and our systems. Lots of it comes as a result of the underperformance of the long-term portfolio not reacting well to these market conditions. This does not worry me too much as we are still on a tentative hold while actively testing improvements to our systems, but at the same time, I do advise caution if you are anticipating entry into any of these positions prior to us lifting this hold. We still are not endorsing these allocations at this time, but we are providing the performance and positions from our system, for complete transparency and consistency sake.

Again, we do not endorse these positions but are providing them for complete transparancy on why we are on a tentative hold.

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

The results of yesterday are as follows:

Baseline:

• $SPY: -0.33%

Our Results:

• Sector Neutral 0.00%

• Variable Market Neutral -0.74%

• Market Neutral -0.74%

• Base Algorithm -0.78%

• Variable Sector Neutral -0.85%

• Long Term Portfolio -1.01%

As I said before, we are still on a tentative hold on our systems. We do not recommend you enter into any of these positions for risk management's sake and only utilize this list for a possible watchlist of allocations to take. 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 9/06/2023

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, $TSLA, $AAPL , $NVDA , $AMZN, $DG, $VRA* , $NOTE* , $FAZE
* = 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 9/06/2023

• Fed's Collins Speaks - 8:30 AM ET

• US Trade Deficit - 8:30 AM ET

• ISM Services - 10:00 AM ET

• Fed Beige Book - 2:00 PM ET

• Fed's Logan Speaks - 3:00 PM ET

Notable Earnings for 9/06/2023

Pre-Market Earnings:

• Express (EXPR)

• Phototronics (PLAB)

• ZeroFox (ZFOX)

• Core & Main (CNM)

• AstroNova (ALOT)

• Genesis Unicorn Capital (ESGL)

• Kirkland's (KIRK)

After-Market Earnings:

• C3.AI (AI)

• UiPath (PATH)

• Gamestop (GME)

• ChargePoint Holdings (CHPT)

• Dave and Buster's Entertainment (PLAY)

• American Eagle Outfitter (AEO)

• Sprinklr (CXM)

Wrap up

Overall, please continue to be careful in these market conditions, and look to realize gains when given an opportunity to do so. Do not increase your risk, and make sure to protect your bottom line. This is not the time to be overly bullish nor overly bearish. Take advantage of the market momentum, but do not get too much exposure as anyone who is overallocated will realize a significant amount of losses as a result. Practice safe risk management and tread lightly on these market conditions.

Good luck trading today, and let’s make some bank!