HaiKhuu Daily Report 9/07/2023
Good morning and happy Thursday! Hope you traders all are doing well and feeling great. Markets are down at the time of writing this report, and we are actively testing daily support levels. Please be extremely careful right now, as the markets are either going to bounce here on support like we saw yesterday, or we are ultimately going to continue to move down until we test the strong psychological support at $440, and possibly continue to fall harder.
We have a weak bullish TK crossover on the $SPY daily chart, but this could possibly be a fake out. As always, practice safe risk management, protect your bottom line, and make sure to have cash available to allocate to the markets. We are seeing weakness in the markets, but just like we’ve seen before, a lot can be happy and we can turn on a flick of a switch. Capitalize on the opportunities that are available to us, but tread lightly on these current market conditions as a lot will happen in the near future.
Lots of traders are confused right now about the sentiment they want in the markets, so navigate accordingly, knowing that there is a lot of confusion on market direction which will result in either a significant amount of upside potential or a lot of losses to be incurred.
I’ll talk more about how to navigate the markets later on in this report but for now… Good luck trading today, and let’s see what the markets have in store for us.
The updated $SPY daily levels are as follows:
Conversion Line Support: $444.34
Base Line Support: $443.34
Weak Psychological Resistance: $450
Strong Psychological Support: $440
Daily Cloud Resistance: $450.38
Thoughts & Comments from 9/06/2023
Yesterday was a tough day for the overall markets. There was a significant amount of bearish momentum and no great opportunities to confidently trade to the upside.
We started the day with $SPY trading under the $450 support level, opening at $448.39, down from the previous close of $449.24. Markets were looking bearish as $SPY made the official high of the day, around open trading at $448.39, and continuing to stumble down for the majority of the day.
There was no solid bullish momentum in the first three hours of the trading day, where there was only downside movement. The selling did slow down going into the lunchtime lull, where we made the first relative low of the day trading right above $445, and saw some slight bullish momentum during lunch, but in the afternoon, as people started to come back and volume picked up, we saw a sizable amount of selling, resulting in us breaking below the $445 psychological support, and making the official low of the day, with $SPY trading at $443.82.
This was a tough time for the markets as we dropped approximately 1% on an intraday basis, but thankfully, there was a bounce from the bottom and some solid bullish momentum in the afternoon.
It was difficult buying with confidence at the relative bottom, but $SPY did move up consistently throughout the afternoon, going from the official low of the day to hovering around $446. Once $SPY reached $446, there unfortunately was not much movement or momentum.
Power hour was very lackluster, as we continued to hover around $446 for the rest of the day. We ended the day with $SPY trading at $446.22, down approximately $3 for the day, or roughly 0.67% with an intraday bearish movement of -0.49%.
It was a tough day for the markets but provided us with many great opportunities to trade and realize some gains. Hopefully, you all were able to manage your risk to the downside and watch the general market momentum to capitalize on the upside. It was a difficult time to trade with confidence, but if you were able to maximize the opportunities available, great job! Let’s see what the markets have in store for us, and have a great time trading today!
Thoughts & Comments for Today, 9/07/2023
This is going to be an interesting time for the markets. Volatility is continuing to rise as market momentum is slowing down. We are seeing dips in organizations like $NVDA and $AAPL which can result in some significant bearish momentum in the markets.
I would advise extreme caution when attempting to trade today. There is a weak bullish TK crossover on the $SPY daily chart, but with the way it is set up at the moment, I do believe there is a great chance that this is a fake-out and a trap.
We are at major daily support, and can easily break through that level in the short term. I would not advise being overly bullish or bearish at this point, mostly with the confusion in the markets right now. If I had to bet, I would still say there is downside momentum that can come into the markets over the next couple of days, but at the same time, we can easily see a bounce and reversal in the markets. As I have been saying over the previous couple of days, look to be cautious, hedge positions, and tread extremely lightly on these market conditions.
A lot of people are going to get hurt in the short term as a result of this momentum in the markets, but the best traders are going to be able to take advantage of this momentum with relative ease, have minimal risk and exposure, but at the same time, still be able to realize a significant amount of gains.
Watch out for the $SPY daily conversion line and baseline support. In the case the markets continue to slump, these levels and the psychological support of $440 are going to be the major testing points in the markets in the short term. If we break below these levels, you should expect to see a significant amount of bearish momentum as a result of that, but in the case that we bounce anytime in between now and then, we can see some short-term bullish confidence. I would not attempt to be bullish right now, not until we break back above the daily cloud resistance, and show confidence in a trend reversal from this point. There is a lot of confusion in the markets right now making it extremely difficult to have confidence in a single direction, so continue to capitalize on the opportunities that are presented to us, but tread extremely lightly.
I would not recommend going long with any general equities at this point unless you have a significant amount of confidence in your general allocation. If you are attempting to purchase anything right now, look to purchase value in the markets. There are some solid organizations you can look out for like $DIS, $DG, and many other organizations, but it is extremely difficult to allocate into major tech organizations right now, as most of them are highly overpriced, and will ultimately result in a lot of downside risk.
Personally, I do not anticipate allocating too heavily into the markets today as a result of personal confidence in the markets, and I have a meeting I have to attend. But if you are looking to trade, simply follow the trends in the markets, and look to actively day trade and scalp when given an opportunity to do so. I do not recommend allocating long at the moment, and if you are not confident or sure about the current market conditions, I would recommend simply sitting on the sidelines, holding cash, and enjoying the process in the meantime. There is a significant amount of downside risk in the markets right now, and the only thing that is better than capitalizing on the downside momentum in the markets is sitting on the sidelines with cash ready to buy, versus attempting to force a position and realizing losses as a result.
Please again, be careful in these market conditions as there is a significant amount of downside risk in the markets right now as we are testing support levels. Do not over-trade, practice safe risk management, and limit your downside exposure.
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 alright day for our systems. Our technical analysis beat our fundamental analysis, and our fundamental analysis beat out the markets, so despite not being a profitable day for the systems, we consider it still a win. The hold still remains, but we anticipate lifting this hold in the near future. Be on the lookout for the lift, but know that this will come soon. These results and positions are still not endorsed by HaiKhuu, and we are only providing them for complete transparency and consistency while we are doing active tests.
To get an in-depth analysis of our algorithms' performance, check out Asher’s Report!
The results of yesterday are as follows:
Baseline:
$SPY: -0.49%
Our Results:
Market Neutral: -0.01%
Variable Sector Neutral: -0.1%
Sector Neutral: -0.19%
Variable Market Neutral: -0.19%
Long Term Portfolio: -0.23%
Base Algorithm: -0.27%
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 9/07/2023
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, $NVDA, $MSFT , $AMD, $DG , $VRA* , $VWAPY* , $NOTE* , $VRA*
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 9/07/2023
Initial Jobless Claims - 8:30 AM ET
US Productivity (Revision) - 8:30 AM ET
Notable Earnings for 9/07/2023
Pre-Market Earnings:
Science Applications International (SAIC)
Designer Brands (DBI)
Toro Company (TTC)
ABM Industries (ABM)
After-Market Earnings:
Docusign (DOCU)
Planet Labs (PL)
Smartsheet (SMAR)
Braze (BRZE)
Semtech (SMTC)
Lantronix (LTRX)
Smith and Wesson Brands (SWBI)
Wrap up
Overall, this is going to be a tough time for the markets. Please tread lightly and practice safe risk management. Do not overallocate into the markets, and take these conditions on a day-by-day, and a trade-by-trade basis. Do not be overly bullish, do not be overly bearish, and simply just follow the momentum in the markets. Do not fight any trends, and as always, practice safe risk management.
Good luck trading, and let’s see what the markets have in store for us today!