HaiKhuu Daily Report 9/20/2023
Good morning and happy Wednesday! Hope you traders all are feeling amazing and are excited about today! We have an FOMC announcement in regard to the interest rates at 2 PM EST, and Jerome Powell speaking at 2:30 PM EST. Rates are most likely to continue to increase the interest rate over time, so please prepare and allocate accordingly. Be cautious while attempting to trade today, and capitalize on the opportunities that are presented.
This is going to be an extremely interesting day for the general markets that will provide us with opportunities to trade, but as always, despite the ability to realize some gains, a significant amount of losses can and will be incurred today.
Make sure to protect your bottom line while attempting to trade, but realize some gains and capitalize on the opportunities that present themselves. Be diligent, and seize any opportunities, but do not be careless and greedy.
Today will be an amazing day for some, and unfortunate for others. So good luck trading today, this is going to be one of those days when luck is necessary, but luck can only take you so far. So make some smart plays, and let’s realize a significant amount of gains.
The updated $SPY daily levels are as follows:
Conversion Line Resistance: $445.51
Base Line Support/Resistance: $443.34
Weak Psychological Resistance: $450
Strong Psychological Support: $440
Daily Cloud Resistance: $448.47
Daily Cloud Support: $437.83
$SPY Daily Candles - Testing Baseline Support [9/20/2023]
Thoughts & Comments from 9/19/2023
Yesterday was an extremely interesting time for the markets. There were extremely large directional moves that would cause a significant amount of losses or gains to be incurred throughout the day, despite being relatively neutral on an intraday basis.
We started the day with $SPY opening down, trading at $442.71, down from the previous close of $443.63. We looked weak going into the open but were optimistic about the overall movement. We moved up slightly to test $443 and did not have much bullish momentum, as within the first half hour of the day, we broke past the daily baseline support, and as we rejected that level, $SPY only continued to come down with confidence until the lunchtime lull.
Going into lunch, $SPY was hovering right under $441, and showing relative weakness, but no significant directional movement in the markets, we remained at that level for a couple of hours and was choppy not providing confidence or fear in the markets. As volume started to come back, we noticed that $SPY dropped, making an official low of the day trading at $439.94, down significantly from open, and showing fear in the markets.
Once we made that low, in hindsight, it appears it was just a stop hunt for all of the positions that had stops right under $440, as $SPY pushed up for the entirety of the afternoon, providing us with some phenomenal opportunities to trade and realize some gains! $SPY quickly pushed from $440 to go on and make the official high of the day trading at $443.28, up significantly from the bottom, and green again on an intraday basis.
The markets dropped again going into power hour but had some relatively strong bullish momentum into the end of the day, where $SPY ended trading at $442.71, down $0.92 for the day, or down approximately 0.21%, with an intraday bullish movement of 0.02%. Days like yesterday, are relatively neutral on a larger scale, with an irrelevant amount of intraday movement, but if you look at the movement we saw intraday, there was a significant movement that made it extremely difficult unless you simply followed the momentum and direction of the markets, and were able to capitalize on the opportunities that were presented to us.
I hope you all were able to simply follow the momentum in the markets and capitalize on the opportunities that were presented to us at the time, there were many great opportunities to trade yesterday and let’s see what the markets have in store for us today, this is going to be an interesting day with the FOMC’s decision on the interest rates, so let’s have a good time and realize some gains!
Thoughts & Comments for Today, 9/20/2023
Today is going to be an extremely difficult day for the markets. There is going to be an extremely large directional move, and no one genuinely knows which direction it is going to be. Do we break support with confidence and come crashing down in the short term? Or do we break above resistance and continue to move up with confidence? Your prediction is genuinely as valid as mine, and at the end of the day will simply just be speculation on the movement in the markets.
What I will say though, is unbiased as I have genuinely no reason to lie to you. We are testing the daily support on $SPY, as this will be the fourth day of testing this resistance, not taking into account the FOMC’s decision on the interest rates, or Jerome Powell speaking, it will be interesting to see how $SPY plays out at this level. We saw a significant amount of bearish momentum yesterday that was quickly snapped back and recovered the majority of the losses that were incurred. At the time of writing this report, $SPY has moved back up above the previous resistance levels and is looking good during this pre-market session. The candle on the $SPY daily for 9/19 is a dragonfly doji, signifying that there is a possible reversal change, resulting in what could be a reversal of general sentiment going from weak and bearish, to weak and bullish. I would not be overly confident at this point of a reversal, but I would not discount the idea that it is a serious possibility. I would continue to recommend proceeding with caution and not being overly bullish or bearish in these market conditions, but to have cash ready to allocate into the markets, while having some strong equity positions that could net you a significant amount of gains in the short term, assuming market conditions reverse and are optimal.
There is a lot of confusion in the markets right now, so being extremely passive will not allow you the opportunity to realize gains, but being overly aggressive will result in you over-trading and realizing losses. I do not recommend being either right now, but being at a calm neutral in terms of general allocations. Trade when you have confidence, follow the market momentum when you believe there is an opportunity to trade, and just tread lightly on these market conditions and proceed with caution.
Active day trading and scalping right now will provide you with extremely consistent returns while market conditions are at a point of confusion, but the downside of this is you will not be able to have the ability to hold strong equities and follow larger market trends. The best recommendation I have for you right now is to only allocate into companies you are confident in holding, that are fundamentally solid, while actively holding a sizable amount of liquid capital and actively utilizing that capital through these market conditions to scalp short-term movements. You will have long hold positions you are comfortable and confident in, while still being able to ride the waves in the markets to capitalize on the quick opportunities that are available to us.
With all of this said though, we still do have the FOMC’s decision on the interest rate coming out today, and a significant amount of uncertainty as a result of this. I would tread extremely lightly on these market conditions as a result of this, and hopefully, that provides us with an opportunity to capitalize on some momentum towards the upside, allowing us to to comfortable and confident in these market conditions. If rates come back higher than expected, we could see a quick drop in the general markets that would result in what could the the final nail in the coffin to solidify the underlying fear in the markets that the bullish confidence and momentum of 2023 is over. Obviously, this is not ideal, and I am not confident that it would happen, but is a real possibility.
For now though, just continue to navigate the markets accordingly, do not overtrade, and practice safe risk management in the process. I would not be overly aggressive nor greedy trading today, mostly around 1-2 pm EST, but look for opportunities to trade.
Personally, I will be looking for opportunities to enter into day trades with confidence, but will not be doing anything that ultimately would be “detrimental” to my account. I personally am looking for a slight dip around open within the first couple of hours of the day going into the lunchtime lull as people are selling prior to the news event, to purchase the dip, and ride the momentum in the markets up while we wait for the data to come out. Historically, Jerome Powell has moved the markets up while he speaks, and afterward causes the markets to come down once there is a shift in his sentiment or market momentum, I would ideally be in on the run-up, out before the momentum shifts overall, and move on with my life accordingly. I do not know how much active scalping or trading I want to attempt, but I will see what opportunities are available today.
Please as always, just practice safe risk management, realize some gains, and be cautious in understanding the current condition the markets are in right now.
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, there really is not much to report on as everything remained relatively neutral. It is nice seeing that our technical analysis outperformed our fundamental analysis, but we are still not at a point of confidence where we anticipate lifting our hold on our algorithm. We are still completing our tests in the background as these market conditions have been extremely difficult to navigate, and will hopefully have updates for you when we lift our hold soon.
To get an in-depth analysis of our algorithms' performance, check out Asher’s Report!
The results of yesterday are as follows:
Baseline:
$SPY: +0.02%
Our Results:
Sector Neutral: +0.29%
Variable Sector Neutral: +0.22%
Base Algorithm: -0.04%
Variable Market Neutral: -0.09%
Long Term Portfolio: -0.11%
Market Neutral: -0.2%
As I said before, these positions are on a tentative hold at the moment while we are live testing in these current market conditions. We are going to be lifting the hold soon as long as situationally everything is looking as expected. Just a reminder that these positions are not currently endorsed by HaiKhuu, but we are providing them for complete transparency and consistency sake while we are working on active improvements. If you are taking any of these positions, take them at your own risk and practice safe risk management in the process!
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 9/20/2023
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 , $AAPL, $ARM , $NVDA , $DIS , $TSLA , $FAZE*
Position Opportunities:
Follow the market momentum
Exit positions you are not comfortable holding
Hedge positions you want to hold
Have cash ready to allocate in the markets
LONG OPPORTUNITIES:
Long-Term Dividend - $GAIN / $JEPI
Long-Term Investment - $DIS
Economic News for 9/20/2023
Fed Interest-Rate Decision - 2:00 PM ET
Fed Chair Powell Press Conference - 2:30 PM ET
Notable Earnings for 9/20/2023
Pre-Market Earnings:
General Mills (GIS)
Lifezone Metals (LZM)
After-Market Earnings:
FedEx Corp (FDX)
KB Home (KBH)
Wrap up
Overall, this is going to be a fun day for the general markets that provide us with amazing opportunities to trade and realize some gains as a result of this. I am excited to see what happens today, mostly as a result of Jerome Powell speaking and the interest rate decision. This will be an interesting time, so realize some gains and practice safe risk management.
Good luck trading, and seize any trades available to us today!