HaiKhuu Daily Report 9/28/2023
Good morning and happy Thursday! Market movement has been wild over the previous couple of days, and I hope you all have been able to capitalize on the opportunities that have been available to us! $SPY is relatively neutral as I write this report, but will shift heavily by the time markets open, so please take this into account by the time you read this report. We have GDP numbers and Jobless claims during the pre-market session which will heavily dictate the movement and sentiment in the markets today.
I do not recommend attempting to actively trade the pre-market session, and utilize this as an opportunity to judge momentum and confidence in the markets prior to markets opening to ensure you are allocated accordingly and that you are comfortable and confident in the current market conditions.
This is going to be a day that will generate a significant amount of both realized losses and gains, so make sure you understand the conditions in the markets, and that you understand the risks that are involved with attempting to trade today. Make some smart decisions, have some fun, and realize some gains!
There is a significant amount of bearish sentiment in the markets at the moment, with the bearish cloud appearing on the daily cloud, the fact that we are in extreme fear on the fear and greed index, and the sentiment of the retail market is at a relative low. We can continue to come down nicely over the next couple of days, but at the same time, this can provide us with an amazing opportunity to allocate with confidence and invest in some phenomenal allocations at an even better price.
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 Resistance: $433.63
Base Line Resistance: $437.98
Weak Psychological Resistance: $430
Weak Psychological Support: $425
Strong Psychological Support: $420
Daily Cloud Resistance: $442.63
$SPY Daily Candles - Testing Daily Psychological Support & Bearish Cloud [9/27/2023]
Thoughts & Comments from 9/27/2023
Yesterday was an extremely interesting day for the markets. There was not much movement on an overall basis, as $SPY moved up $0.17 from the close on Tuesday, but had a significant movement on an intraday basis, with an extremely large bearish movement in the markets, which was followed up by a beautiful bullish recovery.
We started the day with $SPY trading slightly green, opening the day trading at $426.95, up from the previous close on Tuesday at $425.88. We showed relative signs of weakness from open, despite us opening the day green. There was not much bullish momentum right at open, and an uncomfortable amount of chop to start the day off. The markets did not have any sort of significant move for the first half hour of the day, and once we found a direction the markets were confident in, we watched as momentum took over the sentiment in the markets, and dropped extremely quickly throughout the entire morning, leading into the lunchtime lull.
Going into the lunchtime session, we noted that $SPY continued to hover right above the $425 psychological support level, despite conditions not being optimal. We continued to hover and chop around this psychological level for the entire lunchtime session. As volume and momentum started to pick up again as people started to come back, we watched as the $SPY quickly broke below the previously mentioned support level and continued to come down, continually making new official lows of the day, and pushing three-month lows.
We filled the gap from the beginning of June at $422.90 and continued to fall as we continued to go lower and lower, making the official low of the day trading at $422.29, down over 1% on an intraday basis. This was an extremely tough time for the overall markets that did not provide us with much confidence, but it provided us with what was an amazing opportunity to trade an extremely quick reversal.
In the back half of the afternoon, after making three-month lows, there was a shift in market momentum where $SPY quickly recovered and rallied for the final two hours of the day. We quickly went from trading at $422 to going green again for the day trading above $426, this movement happened within an hour, and the 1% rally back up generated a significant amount of gains for some of the members of the community.
Houston, one of the members that have been in the community for multiple years at this point, grabbed many $424 1-DTE calls on $SPY and was able to ride those and realized over $10,000 in gains, in less than an hour.
The final hour of the day was not that eventful, as the momentum-based move was over and we saw some slight chop to end the day. Nothing of any major significance happened during power hour, but we all were surprised by the overall movement we saw in the markets throughout the day.
We ended the day with $SPY trading at $426.05, up $0.17 for the day, or up approximately 0.04% from the previous close, with an intraday bearish movement of -0.24%. It was an extremely confusing day for the overall markets that provided us with many great opportunities to actively trade and capitalize on both the bull and bear sides of the markets.
It seems that there was confidence in the markets despite us being in an extreme fear state, which provided the risk takers to capitalize on what was an amazing opportunity to trade and realize a significant amount of gains in the process. I hope you were all able to minimize your risk while the markets were continually coming down, and easily capitalized on the upside potential in the markets as momentum started to pick up in the afternoon!
Yesterday was an insane day for the markets that left a lot of traders generally confused, but C’est la vie. Energy was the only sector that was green overall, so please continue to be cautious of general technology at the moment and look to allocate more to general value and safety allocations.
Let’s see what the markets have in store for us today as this is going to be an extremely interesting time!
Heatmap - $SPY 9/27/2023
Thoughts & Comments for Today, 9/28/2023
Today is going to be another interesting time for the markets. By the time I’ve gotten to this part of the report, the markets have come down slightly, which is not the best sign leading into economic news coming out today, but at the end of the day, this pre-market movement is not significant in any way, shape or form, as the majority of the movement that we are going to see during the pre-market session, is going to come directly from economic news that we will be receiving. We will get the GDP report, Jobless claims, and PCE numbers all coming out that will dictate the direction and sentiment of the markets.
I would not attempt to trade during the pre-market session, but use this as a gauge the sentiment for the markets. I believe that in the short term, there is a significant amount of opportunity for the markets to continue to come down, but at the same time, as we already have broken major support, are in extreme fear in the markets, and have had a sizable intraday movement yesterday, that this is going to be a great opportunity to pick up some organizations that are fundamentally solid, and to scale into your positions slowly with confidence.
As I have said before, I would highly recommend you stay away from attempting to allocate long into either tech or semiconductors right now, as they are heavily overpriced in my opinion, but in the short term, if you are attempting to make some quick trades or scalps, these organizations will provide you with the best opportunity to realize any sort of significant gains in an extremely short period of time with ease.
The biggest thing to watch out for though in these market conditions, is to simply practice safe risk management. A lot of people are going to have difficulties navigating the markets and have an even more difficult time doing so consistently, but if you are able to capitalize on the opportunities that are available to us in these conditions and look for opportunities to enter and hold some fundamentally solid organizations that are undervalued at the moment, you will be able to realize a significant amount of gains over time, with relative ease, and not much downside risk.
If you are looking to take on some risk right now, attempting to trade movements in $SPY/$QQQ will be extremely consistent, and provide you with some amazing opportunities in the short term. You will see larger movements in higher beta positions like $TSLA and $NVDA, but they will not perform extremely consistently in the same way that the general indices will.
Consistency is key in these market conditions. Anyone can get lucky and realize some gains, but only the safest and smartest traders will be able to do so on an extremely consistent basis. Do not look to take on more risk that you are not willing to take on, and understand the downside risk that is in the markets at this moment. The same way that we’ve recovered nicely from the bottom yesterday, can be a continued sell-off, that results in exponential losses and over-trading. Do not let your emotions get the best of you while attempting to trade, and take advantage of the opportunities that are available to you.
Personally, as the same way is always, I do not know what organizations I anticipate trading today, but I know that I am extremely interested in trading in these market conditions as a result of the increased volatility in the markets. This will provide us with some amazing opportunities to realize a significant amount of gains in a short period of time, mostly if market conditions are favorable, and provide us with some great opportunities to trade some bullish momentum. I personally have added more to my $DG allocation, and have taken some $MAT off the table. My $MAT allocation has decreased by roughly 70% and I will be utilizing that capital to allocate more into active trades and to allocate into other organizations that I feel are undervalued with time.
Let’s see what happens today as a result of the economic news that comes out.
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 the systems. The base algorithm and long-term portfolio underperformed in comparison to $SPY, but I am happy to see that the technical analysis with the algorithm outperformed the fundamental analysis of the long-term portfolio it was built on. We are still on a tentative hold at this time but do anticipate lifting the hold soon as the active positions are performing as expected in the short term. It will be interesting to see what happens over the next couple of days, and I’ll keep you all updated.
To get an in-depth analysis of our algorithms' performance, check out Asher’s Report!
The results of yesterday are as follows:
Baseline:
$SPY: -0.24%
Our Results:
Sector Neutral: +0.36%
Variable Sector Neutral: -0.14%
Market Neutral: -0.42%
Variable Market Neutral: -0.43%
Base Algorithm: -0.47%
Long Term Portfolio: -0.8%
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 9/28/2023
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 , $AMZN , $NVDA, $DG , $DIS , $MSFT , $TSLA, $AAPL , $HE*
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 / $DG
Economic News for 9/28/2023
Initial Jobless Claims - 8:30 AM ET
GDP QoQ Final - 8:30 AM ET
PCE Prices - 8:30 AM ET
Pending Home Index - 10:00 AM ET
Kansas City Fed Manufacturing - 11:00 AM ET
Fed’s Powell Speaks - 4:00 PM ET
Notable Earnings for 9/28/2023
Pre-Market Earnings:
Accenture Ltd. (ACN)
CarMax (KMX)
Jabil Inc (JBL)
After-Market Earnings:
Nike (NKE)
BlackBerry Limited (BB)
Vail Resorts (MTN)
Park City Group (PCYG)
Wrap up
Overall, market conditions are going to continue to be extremely interesting today as a result of economic news that comes out during the pre-market session and people’s general sentiment in the markets. Watch the momentum in the markets and do not fight any trends. Look to take advantage of the opportunities that are available to us, but realize some gains when given an opportunity to do so. Practice safe risk management and realize some gains trading today!
Good luck trading and let’s have some fun trading today!