HaiKhuu Daily Report 01/18/2024
Good morning, and happy Thursday! Hope you all have been doing well, $SPY is up slightly during the pre-market session while writing this report. Conditions are looking slightly better than yesterday, and are displaying signs of relative strength as we are back above the daily resistance level. There will be opportunities today, but it will be a matter of if these conditions are going to last, and if people are going to remain confident enough for us to continue to move up. We have economic news coming out at 8:30 am EST, which will shift the general market sentiment, so follow the momentum and watch the markets.
People should be able to realize gains with ease today with this confidence in the markets, so look to capitalize on the opportunities that are available to us, don’t get greedy, and protect your bottom line. One pre-market movement up back above resistance is not enough of a confirmation to be overly bullish in the markets, but it is enough to present the possibility for opportunity.
Do not look to take on risk in these market conditions, but look to have some fun.
Good luck trading, and let’s watch what $SPY has in store for us today!
The updated $SPY daily levels are as follows:
Conversion Line Support: $472.52
Baseline Support: $469.04
Psychological Support: $470
Daily Cloud Support: $450.35
$SPY Daily Candles - [01/17/2024]
Thoughts & Comments from Yesterday, 1/17/2024
Yesterday was honestly an extremely uneventful day for the markets. There were opportunities to trade, but it was difficult to realize any sort of significant gains throughout the day. We watched as many people were stop-hunted as $SPY kissed under $470, and many people unfortunately had an extremely difficult time trading with confidence throughout the day. It was an extremely neutral day on an overall basis but presented opportunities in the process.
We started the day with $SPY trading at $471.87, down from the previous close of $474.93 on Tuesday. Conditions were not strong around open, but we did see relative strength intraday as $SPY pushed after making a relative low around open, to make the official high of the day trading at $472.78. There was not much movement up from open, as the high of the day was less than a dollar above the open price, but in reality, despite it being only a fractional movement up, it was a lot better watching the markets slowly move up, than watching continued bleeding.
After making the official high of the day and watching as volume started to pick back up after the lunchtime lull, market conditions did start to display weakness where the majority of the volume in the markets was active selling as $SPY sold off for approximately two hours, where we came down to test the $470 support, breaking it for a split second to stop hunt some traders, where $SPY made the official low of the day trading at $469.87. This was unfortunate if you had a stop set right under that support level, but many people lost their positions at that time.
The stop hunt was rough knowing that many people lost their position at that time, but it gave us all an amazing opportunity to trade during the back half of the afternoon. We watched as $SPY bounced off of $470, and continued to move up for almost the entirety of the afternoon, taking a slight dip leading into power hour, and watched as $SPY continued to move up leading into close. We ended the day with $SPY surprising everyone with a large movement up into close, where we ended the day near the high of the day, trading at $472.29. $SPY was down $2.64 from the previous close, or down 0.56%, but was up $0.42 on an intraday basis.
It was a rough day overall that was extremely uneventful as conditions remained weak throughout the entire day, and remained within an extremely tight range, but provided us with a couple of opportunities to allocate and trade within the day. Hopefully, you were all able to generate realized gains throughout the day, because many individuals unfortunately had an extremely difficult time either overtrading or allocating incorrectly yesterday. It was a tough day overall, but as you know as I say, C’est la vie. Hopefully, conditions get better today, and let’s see what the markets have in store for us!
Heatmap - $SPY 01/17/2024
Thoughts & Comments for Today, 01/18/2024
Today is shaping up to be a significantly better day than yesterday with many opportunities across the board. Many positions are up nicely during the pre-market session and people will be able to capitalize on these conditions with ease. But just because there is confidence in the pre-market session, does not mean you should not tread lightly on these conditions. Look to follow the general market momentum, and look for opportunities with higher beta plays, but make sure to protect your bottom line and practice safe risk management. Organizations like $TSLA and $NVDA are going to be heavy directional movers today and should have a larger movement than the general markets, so if you want to take on some risk, look to actively scalp and trade higher beta positions like that.
There is short-term confidence in the markets that will make allocating in the markets today favorable if you can catch the momentum and ride the trend. My suggestion for attempting to allocate today is to look for a longer timeframe day trade. Don’t attempt to quickly scalp in the markets, find a good position that is showing strength or a sign to enter, set a stop below major support, and let the position ride through the day. Assuming your position moves up, initially adjust your stop to your break-even price to have zero downside risk and exposure on the position, and continue to move that stop up accordingly to secure more profits. Look out for major support/resistance levels, and in the case that there is a newfound support after a solid movement up, adjust your stop to under that support, and let your day trade ride throughout the day.
Scalpers will obviously be able to find opportunities in the markets consistently throughout the day, but people who can ride the momentum and hold a position throughout the day will realize significantly more gains in these conditions.
I will say though, that confidence in a position will be key in these conditions. Do not over-allocate where you are uncomfortable holding a position, size in accordingly where you have comfort, and continue to ride the momentum in the markets. If you are sweating or stressing about a position at any time, you are taking on too much risk, and that will lead you to be emotional in the market.
For my allocations for the day, I will be looking to actively day trade and hold allocations through the day. My plans during the pre-market session while writing this report, are to look for opportunities to actively day trade $BA, $AAPL, and $TSLA. I don’t know necessarily which position of the three I will pick, but realistically my allocations will be in one of those three organizations, and will attempt to hold throughout the day, and will be looking to actively minimize my risk and secure as much profit as possible. The biggest thing I want to make sure to do is to time out the allocation properly, enter in on a dip when there is a sign of reversal, adjust my stop to be at break even and ride the exposure up with confidence, securing profit in the process. I will have little to no risk in the markets today because each entry will be calculated with a tight stop set under my entry, just for general safety reasons. I may purchase multiple allocations, but just know that I have zero anticipation of holding any of these allocations until tomorrow. All entries that are generated today with the specific anticipation of being a day trade, will remain a day trade.
As I have been saying, just make sure to practice safe risk management in these market conditions, and be smart and safe in the process.
If you want to watch any of my allocations, they will be posted live in the HaiKhuu Discord.
HaiKhuu Proprietary Algorithm Report:
With updates to the algorithm and our systems, I have come to the executive decision to ultimately cut the current algorithm in favor of adjusting towards our new intraday trading bot versus the buy-at-open, sell-at-close system. We will update you more on this system in the next couple of days and will be working on phasing out our active algorithm. I will be discontinuing this portion of the report with the previous format and will have this fully updated next week once we have completed this upgrade and overhaul. I hope you all are excited about this new product because it should provide significantly more consistency and opportunity in the markets.
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, $BA, $AAPL, $SOFI, $MSFT, $NVDA
Position Opportunities:
Follow market momentum
Take profit on positions
Limit your downside risk
LONG OPPORTUNITIES:
Long-Term Dividend - $GAIN / $JEPI
Long-Term Investment - $KO / $WMT / $BA
Long-Term Auto Sector - $F
Speculative Re-Entry - $DIS / $RIVN
Economic News for 01/18/2024
Jobless Claims - 8:30 AM ET
Philadelphia Fed Business Index - 8:30 AM ET
Building Permits & Housing Starts - 8:30 AM ET
Notable Earnings for 01/18/2024
Pre-Market Earnings:
Fastenal (FAST)
Trust Financial Services (TFC)
M&T Bank (MTB)
First Horizon National (FHN)
KeyCorp (KEY)
Home Bancshares (HOMB)
Insteel Industries (IIIN)
Northern Trust Corp (NTRS)
WNS Holdings (WNS)
After-Market Earnings:
PPG Industries (PPG)
JB Hunt Transport (JBHT)
Bank OZK (OZK)
FNB Corp (FNB)
Banner Corp (BANR)
Independent Bank (INDB)
Wrap up
Markets should be a lot of fun today assuming that the momentum is able to last. Look to make smart decisions and practice safe risk management, but many people are going to be able to realize some gains with relative ease. Follow the market momentum, ride the opportunity, and look to minimize risk in the process. We should all have a great time, so be smart and safe, but capitalize on the opportunity that is presented to us.
Good luck trading today, and let’s make the most out of these conditions!