HaiKhuu Daily Report - 01/03/2025
Good morning, and happy Friday!!! This week has flown by, but it feels like it has been a while since we’ve had a Friday? Man it almost feels we haven’t had a Friday since 2024…
Market conditions are in a general state of confusion, but that is going to be the exciting part. Opportunities will be amongst us, and it is just a matter of making the most of these conditions, while having a great time. It would not surprise me if we see another irrational day in the markets, so please continue to tread lightly and practice safe risk management. Trading is not necessarily going to be difficult, but I am assuming we will see inconsistencies in the markets that will make trading harder to do both comfortably and confidently.
I am not expecting to see a significant sell off, but watch out. In the case that $SPY breaks below the levels that it is at currently and breaks the $580 support level, we are in for a world of hurt. So tread lightly, practice safe risk management, and do what you can to realize some gains.
Good luck trading today, and let’s end this week strong!
The updated $SPY daily levels are as follows:
Conversion Line Resistance: $591.49
Baseline Resistance: $594.79
Psychological Resistance: $600
Psychological Support: $580
Thoughts & Comments from Yesterday - 01/02/2025
Yesterday was an interesting time for the markets. Conditions were looking great leading into the first trading day of the year, but man was that sentiment going into open was wrong. Conditions provided us with opportunities to trade, but all that glitters is not gold.
So, we started the day with $SPY opening at $589.38, conditions were looking good as $SPY was trading up roughly $3 from the previous close in 2024, and we watched as conditions strengthened throughout the morning. We did drop slightly right after open, but quickly recovered and rallied, going on to make the official high of the day trading at $591.13, conditionally looking phenomenally, as $SPY was up $5, but that was short lived.
Despite conditions remaining strong, $SPY dropped, going red for the day for a brief moment prior to the lunchtime lull, before recovering during lunch, to only sell off significantly harder afterward. $SPY went on to make the official low of the day trading at $580.50, before bouncing slightly, and slowly recovering and recovering nicely towards the end of the day.
We went on to end the day with $SPY trading at $584.64, down $1.44 for the day, or down roughly 0.25%. I wouldn’t say that it was the worst day in the world as $SPY really did not drop too heavily, but I will say that it was rough as traders were optimistic for the new year, but was met with roughly a $10 drop from the top.
Hopefully, all of the traders here were able to survive the bearish momentum in the markets, and capitalized on that weakness. The weakness has not left the room yet, so please continue to tread lightly while trading today, knowing that the shark is still lurking in the waters.
S&P 500 Heat Map - 01/02/2025
Thoughts & Comments for Today - 01/03/2025
Today should be a rather interesting day for the markets. With the way that everything sits right now, market conditions are relatively weak, despite being strong overall. I would be extremely careful and cautious if you are attempting to trade right now, as there are going to be many traders who are going to be confused and conflicted, not only on the general market sentiment, but on how to allocate, making trading a little bit more inconsistent and difficult to do with confidence.
Just note; as I have brought up before in the report, with the short term weakness we are seeing in the markets, it is going to be extremely difficult to comfortably and confidently navigate these conditions. I am expecting to see some irrational movements in the markets as a result of the confusion, and that will either provide us with great opportunities to capitalize on, or we will watch as markets ultimately chop around prior to taking a dive. I am seeing a lot more weakness though across the board, mostly with the way that $SPY is trading at the moment. If $SPY breaks $580, expect to see more expedited selling across the board.
Continue to tread lightly in these conditions, as again, I am not bearish on the markets, but I am expecting general weakness in the short term, and a lot of indecisive movements at least until the inauguration. You cannot trade the inauguration if you lose your portfolio before then.
This will be a fun day for option sellers though, so if you are attempting to take on less risk, look to sell some 0-DTE CSPs today. The opportunity will not be the sexiest opportunity available, but consistency is better than possibility. You will not generate life changing money selling CSPs in a single day, but things should look relatively strong in the process.
For my allocations today, I do intend on taking on some risk when given an opportunity to do so. I do not want to go crazy, but with the weakness we’ve seen in the markets, I do want to take advantage of the opportunities. I will be looking out for a chance to trade some 0-DTE calls on $SPY for a quick scalp throughout the day, looking to take on some risk, but not going and attempting to taking on any significant risk. So we will see where the markets take us, and make the most of the ongoing conditions! Let’s have some fun today, and realize some gains!
If I see any opportunities, or if I decide to get into any other plays, I’ll announce what I see in the HaiKhuu Discord.
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, $TSLA, $INTC, BTC, $GRYP, $NVDA, $RIVN, $AAPL
LONG OPPORTUNITIES:
Long-Term Dividend - $GAIN / $JEPI
Long-Term Investment - $INTC / $BA / $RIVN / $DG
Economic News for 01/03/2025 (ET):
ISM Manufacturing - 10:00 AM
Notable Earnings for 01/03/2025
Pre-Market Earnings:
No Earnings Scheduled
Wrap up
Hopefully, market conditions only continue to remain optimal for the next couple of weeks. We have the inauguration coming up on the 20th, so it should be a fun time with many opportunities presented before then. Please tread lightly as there is weakness in the markets right now, so practice safe risk management, and protect your bottom line. Have fun trading today, but just know we might see some irrational movements in the markets that will make it difficult to capitalize on today. Just follow the momentum, and have some fun.
Good luck trading, and let’s end this week strong!!!