HaiKhuu Daily Report 9/26/2023
Good morning and happy Tuesday! Markets are down slightly at the moment, but I hope you all are excited about the markets today! At the time of writing this report, $SPY is actively testing the $430 support level, and showing signs of weakness during the pre-market session. This is going to be another interesting yet confusing day for the markets as we chop around this support level and look for a breakout to either the upside or the downside.
There will be many opportunities to allocate, so look for a confirmation of a direction in the markets and ensure that you are practicing safe risk management in the process. Assuming you are allocating wisely, and practicing safe risk management, you should have no problem at all continuing to capitalize on these market conditions and realize gains with ease.
We are going to get a great opportunity to allocate long into the end of the year, watch for a larger sign of reversal in the market at a psychological level, and allocate accordingly. Once I see those signs of reversal, I’ll let you all know in real-time. This is too early as we’ve not seen any major signs of reversal yet, so continue to be smart in these market conditions, watch for a confirmation of a direction, both intraday and on a larger timeframe, and take advantage of any and all opportunities that are available in the markets!
Good luck trading today, and let’s realize some gains!
The updated $SPY daily levels are as follows:
Conversion Line Resistance: $441.20
Base Line Resistance: $439.90
Strong Psychological Resistance: $440
Weak Psychological Support: $430
Daily Cloud Resistance: $442.42
$SPY Daily Candles - Testing $430 Psychological Support [9/25/2023]
Thoughts & Comments from 9/25/2023
Yesterday was an extremely quick day for the overall markets. The day was full of chop, but many opportunities to continually scalp throughout the day, with some nice overall bullish momentum that could have been capitalized on. It was difficult being consistent, but the markets did provide us with opportunities to scalp and realize some gains.
We started the day with $SPY trading at $429.18, down from the previous close of $430.42, and under the $430 psychological support. We quickly dipped at open to make the official low of the day with $SPY trading at $428.72, and pushed up to make a relative high trading slightly green for the day, trading at $430.58. Not much happened after this push, as the markets remained relatively stagnant trading around the $430 support, until the lunchtime lull. As the lull started, we saw that there was a quick bearish move in the markets where we made a relative low breaking under support, to push and quickly rally up to $431. This movement was nice and was one of the only solid bullish movements we saw throughout the entire day.
After this nice movement up in the markets, we pushed up to make another relatively high trading at $432 on $SPY, but remained relatively stagnant and choppy around $431 for the large majority of the afternoon, not seeing any sort of significant movement at all, making it extremely difficult to be consistent, but provided us a solid range to attempt to trade.
Going into the end of the day, we watched as $SPY dipped again during power hour and made a relative low trading at $430, but the drop quickly recovered and saw some great bullish momentum in the final five minutes of the day. $SPY ended the day trading at $432.23, up $1.81 for the day, or up 0.42% from the close on Friday, with an intraday bullish movement of +0.71%.
It was a tough day for consistency, but the day provided us with many amazing opportunities to trade. Hopefully, you all were able to capitalize on the momentum in the markets and realize some gains with us! If you traded $FAZE and were able to sell your position yesterday for +60% from the close on Friday, congratulations on the amazing gains! It was definitely a riskier allocation, but it provided us with many great opportunities to trade and realize some gains in the process. I personally am out of 95% of my allocation, and I do not anticipate entering back into $FAZE soon unless I am provided with an opportunity to reallocate back at 52-week lows. That pump was 100% unexpected, but thankfully we held our positions and were able to capitalize on a phenomenal movement. It was a lot of fun, and let’s see what opportunities are presented to us today!
Thoughts & Comments for Today, 9/26/2023
With the chop at $430, there is going to be a lot of confusion in the markets that will lead to extremely choppy market conditions until there is a large directional move. If this move is bullish or bearish, no one truly knows during the pre-market session, and it will be extremely speculative on which direction we choose. Since starting this report, $SPY has moved above $430, and has retained that level nicely, which is a confirmation of confidence in these conditions, but just as quickly as this confidence has come back into the markets, it can be lost.
We are still in fear on the fear and greed index, and volatility is still at a relative high, so this is giving us some confidence as investors that it is possibly time to start allocating back into the markets while there is fear, but at the same time, as we are continuing to test these support levels, it is not giving me enough confidence to want to allocate extremely heavily at this time.
I would advise people to continue to be fluid with their allocations right now, and not attempt to allocate too heavily into the markets, but to simply follow the market momentum, as there is a significant amount of both news and sentiment shifts that will happen throughout the rest of the week. We have jobless claims and GDP numbers coming out on Thursday during the pre-market session, news about the government shutting down, and institutional rebalancing for the end of Q3 coming up, so there will be many opportunities for the markets to continue to be bearish at this time, but all we need is a simple shift in market sentiment to get a great opportunity to allocate with confidence.
Look to continually trade in these market conditions, but look to practice safe risk management. There will be many opportunities to trade throughout the day, but do not look to fight any momentum and realize gains when given an opportunity to do so. This is not the time to be greedy, but to take what you can get, and do not look back. There may be opportunities to realize some gains, but at the same time, with the sentiment in the markets, there are also going to be many opportunities to get burnt. Do not fight any trends, but prepare yourself to allocate long in the markets once we have confidence in these conditions.
After this week is over, I personally will be looking to allocate more to the markets, in organizations that are not going to be heavily impacted by the tech sector. This will provide us with some phenomenal opportunities to buy some deep value and speculate, while not having exposure to a lot of the downside risk that many of these mega-caps will endure. Some of the organizations I have been watching, and I am sure you know at this point, are $DIS and $DG. I do not anticipate entering into more $DIS equity, but most likely purchasing at the money leaps while allocating and purchasing more shares of $DG.
I do not want to speculate too heavily on general tech, as my sentiment remains the same, that there is a good chance that there are opportunities to capitalize on some bullish momentum, but if you hold the equity too long, you will ultimately get burnt in the process as many organizations are heavily overvalued at this time.
If you are looking to allocate into any major tech though, continue to watch $NVDA. That will be a major catalyst for both tech and semis. Once $NVDA comes down, we will see a lot of major tech organizations follow suit as there will be a shift in sentiment, resulting in any organizations that have moved up with $NVDA, coming down back to what the markets deem as “fair price”. I would only allocate once there is confidence again in $NVDA’s price, and then, and only then would it be a great opportunity to purchase some solid organizations like $AMD, $ARM, and $MSFT.
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 amazing day for the algorithm as it seems that the tests that we are running are starting to perform as expected. Our fundamental analysis did underperform slightly in comparison to the markets, but our technical analysis outperformed both $SPY and the portfolio it was built on. It was a great day for our systems and we are excited that the hold should get lifted soon. Until then, we still are on a tentative hold on our systems, but are excited knowing that systems are working as expected again. If this is consistent, we will lift the hold. We apologize again for the hold, but rather be safe than provide something we do not have confidence in!
To get an in-depth analysis of our algorithms' performance, check out Asher’s Report!
The results of yesterday are as follows:
Baseline:
$SPY: +0.71%
Our Results:
Base Algorithm: +0.9%
Variable Market Neutral: +0.9%
Variable Sector Neutral: +0.62%
Market Neutral: +0.59%
Long Term Portfolio: +0.5%
Sector Neutral: +0.2%
As I said before, the algorithm is on a tentative hold as a result of a loss of confidence in these extremely difficult market conditions. We are looking to lift this hold soon, but for now, it is still on hold. If you are attempting to follow any of these positions, know that HaiKhuu is not currently endorsing any of these positions, and are only continuing to provide them for complete transparency and consistency sake while we are actively testing new systems to improve our algorithm. If you are attempting to allocate into any of these positions right now, we highly recommend you follow the allocations of the current long-term portfolio that the algorithm is built on, as those are all fundamentally solid organizations that should provide you with positive returns over time.
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 9/26/2023
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 , $ARM, $TSLA , $AAPL , $MSFT , $DIS , $DG , $MAT
Position Opportunities:
Follow the market momentum
Limit your downside risk
Hold cash & prepare to allocate into the markets
LONG OPPORTUNITIES:
Long-Term Dividend - $GAIN / $JEPI
Long-Term Investment - $DIS
Economic News for 9/26/2023
US Redbook YoY - 8:55 AM ET
S&P Case-Shiller Home Price Index - 9:00 AM ET
New Home Sales - 10:00 AM ET
Consumer Confidence - 10:00 AM ET
Fed’s Bowman Speaks - 1:30 PM ET
Notable Earnings for 9/26/2023
Pre-Market Earnings:
Cintas (CTAS)
Ferguson plc (FERG)
TD SYNNEX (SNX)
United Natural Foods (UNFI)
Theratechnologies (THTX)
Moving iMage Technologies (MITQ)
After-Market Earnings:
Costco Wholesale (COST)
AAR Corp (AIR)
MillerKnoll Inc (MLKN)
Nanobiotix S.A. (NBTX)
Progress Software Corp. (PRGS)
Wrap up
Overall, this is going to be a fun day for the market as we continue to chop around $430. Watch out as there will be many fakeouts in the process, so allocate accordingly, follow the momentum in the markets, and practice safe risk management. Watch out for a breakout in either direction and simply just follow the momentum in the markets and realize some gains!
Good luck trading today, and let’s have some fun during this confusion!