HaiKhuu Daily Report 01/23/2024

Good morning, and happy Tuesday! Hope you all are doing well! Markets are relatively flat at the time of writing this report, but we have significant earnings during the pre-market session which should impact the general momentum and sentiment during the pre-market session. Hopefully, today is more eventful than yesterday because yesterday was an extremely tough time to trade. Market conditions are strong, but attempting to trade them has been difficult, so be careful and cautious while attempting to trade. We are starting to see signs of weakness start to appear in the general markets, so tread lightly on these market conditions. Support levels are starting to get more narrow on the $SPY daily so momentum is starting to slow down. Be careful because this could easily be a fakeout as we continue to push, or we could start to see the first signs of weakness being displayed in the markets.

Let’s have a great time, but make sure to tread lightly and practice safe risk management.

Good luck trading today, and let’s see what $SPY has in store for us!

The updated $SPY daily levels are as follows:
Conversion Line Support: $477.55
Baseline Support: $475.83
Psychological Support: $480
Daily Cloud Support: $457.31

$SPY Daily Candles - [01/22/2024]

Thoughts & Comments from Yesterday, 01/22/2024

Yesterday was an interesting time for the markets. It was extremely choppy on an intraday basis and there were no great opportunities to trade, but many opportunities to unfortunately get burnt. Many traders had a difficult time trying to capitalize on the markets as a result of the lack of general momentum, but it was interesting seeing how flat the markets were despite $SPY making an all-time high.

We started the day with $SPY looking relatively strong, opening the day at a new all-time high trading at $484, and had continued bullish momentum for the first hour of the day. We made the high of the day, an official all-time high trading at $485.22, and markets were looking extremely strong. $SMCI was up over $40 at the time, and conditions were looking extremely strong until $SPY started to display weakness about an hour into the day.

$SPY started to sell off after 10:30 am EST, and dropped to make a relative low trading right above $483, and hovered around $484 for the large majority of the rest of the day. There honestly was not much general market momentum as we continually chopped within a $1 range throughout the rest of the day. I wish there was more to be said, but between 11 am EST and market close, we retained that level for the entirety of the day.

Momentum ultimately was extremely slow on $SPY and it was a difficult time attempting to trade, but scalpers would have had an extremely range-bound movement they could have capitalized on, but ultimately, there was no movement that was significant on $SPY, as we ended the day with $SPY trading at $483.45, up $1.02 for the day, and down $0.55 from close. It was a tough day to trade, with really not much to be ultimately said after making the high of the day.

It is interesting as we are seeing momentum start to slow down, but opportunities are presented to us. We did watch as $DWAC moved up approximately 88% yesterday, which was an insane time for anyone who has been bag holding that position and provided us with opportunities to scalp it intraday, but it left many hyperbulls extremely profitable and left many people who attempted to short it at the wrong time extremely hurt as many shorts were burnt with that position.

Hopefully, market momentum is better for us today, because it would be an extremely difficult time attempting to trade and scalp while conditions are strong but the intraday momentum is extremely weak and presents us with no opportunities to trade. But welp, C’est la vie. Conditions could have been better, but we survived another day and had a great time in the process. Hopefully, you all were able to realize gains trading yesterday, and let’s see what the markets have in store for us today!

Heatmap - $SPY 01/22/2024

Thoughts & Comments for Today, 01/23/2024

Today should be another interesting time for the markets. I do not want to be too optimistic as a result of the current market conditions and a result of yesterday’s market performance. There is a very good chance that the markets continue to move up as there is strength in the markets, but current conditions are starting to display signs of weakness that you should acknowledge. One day of weakness is not enough to be overly bearish, but it is enough to start considering the opportunities and making smart decisions as a result.

There are many ways you can attempt to navigate these conditions, and how everyone ultimately decides on navigating it is going to be different.

Some individuals may look to go long and take on a lot of risk by being overly bullish. This is an extremely risky decision, mostly in the case that market conditions remain neutral. Theta will burn those contracts, and it will be painful not getting the instant gratification you want if conditions are not perfect. On the flip side, in the case that you are right, these traders will be able to generate the most gains in a short period of time.

Some individuals may look to attempt to short the markets. I believe that this sentiment is correct, but it is too soon to attempt to fight this market momentum. Market conditions are still strong, and being overly bearish in the general markets is going to be extremely costly. Once there is a sign of a reversal, the bears will have their time to shine and will be able to generate significant gains, but until there is a sign of a reversal, it is difficult to enter into a bearish position with confidence.

Many individuals are holding positions long in their portfolios. These people are going to have a great time simply relaxing in the markets, mostly if they have been holding their positions over the previous three months. One thing to consider if you are holding long positions is to take off some exposure that you are up nicely on and look into the short-term performance. If there is not much more upside potential, look to reallocate into different organizations and allocate back into deep value in the markets, because there will be many opportunities to enter with confidence.

Then there are the day traders and scalpers. These traders will consistently have opportunities presented to them throughout the day, but it is just a matter of how confident they are in their allocations, and if they are going to be consistent enough in predicting short-term movements in the markets. There is a limited downside risk while attempting to scalp, but at the same time, the traders are going to have the most stress in the short term in these conditions, mostly if we are within an extremely range bound. You can scalp quickly within that range and trade accordingly, but these traders perform best when there are large directional moves we could capitalize on. If you are trading, good luck in these conditions, because you will be able to do extremely well in the short term, but just make sure to continue to follow the general market momentum and do not fight any of these trends.

For my allocations today, I do want to take a step back from the markets and sit on my hands. With the conditions we are currently presented, I am not comfortable attempting to allocate heavily in the markets. I will look for opportunities that are presented throughout the day to actively scalp and trade, but it is just a matter of in case we remain within an extremely tight range, I do not want to be caught in a cycle of realizing losses and continually getting stopped out of my position. If we do display confidence in the markets and show signs of a larger movement, I will look to trade, but I am not overly ambitious about attempting to force any trades when I am not comfortable or confident to do so. So just take what I am saying with a grain of salt, and be cautious in these market conditions.

Make sure to practice risk management and make some smart allocations while you have an opportunity to do so!

If you want to watch any of my allocations, they will be posted live in the HaiKhuu Discord.

HaiKhuu Proprietary Algorithm Report:

Stats of Yesterday:

Total Positions Taken:

• 52 Positions

  • 32 Long

  • 20 Short

Biggest Winner:

• $STT

  • +1.37%

Biggest Loser:

• $MTCH

  • -1.97%

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, $SAVE, $RIVN, $BABA, $NVDA, $AAPL, $TSLA

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

• Speculative Re-Entry - $DIS / $RIVN

Economic News for 01/23/2024

• Richmond Fed Comp. Index - 10:00 AM ET

• 52-Week Bill Auction - 11:30 AM ET

Notable Earnings for 01/23/2024

Pre-Market Earnings:

• Verizon (VZ)

• 3M Co (MMM)

• General Electric (GE)

• Haliburton (HAL)

• Johnson & Johnson (JNJ)

• RTX Corp (RTX)

• Lockheed Martin (LMT)

• Proctor & Gamble (PG)

• D.R Horton (DHI)

• Ericsson (ERIC)

After-Market Earnings:

• Netflix (NFLX)

• Intuitive Surgical (ISRG)

• Steel Dynamics (STLD)

• Texas Instruments (TXN)

• Baker Hughs (BKR)

• Canadian National Railway (CNI)

• Stride (LRN)

• East West Bancorp (EWBC)

Wrap up

This is going to be an interesting time. Hopefully, we do not see a repeat of yesterday of an extremely tight range that is difficult to navigate. Many traders are going to do well while attempting to trade today, but I believe that many people are going to have a lot of difficulties. Tread lightly on these market conditions, only trade when you have confidence, and follow the momentum and opportunities that are available. Let’s watch for a possible market breakout and a new all-time high, and at the same time, just be cautious of a possible sell-off down to daily support.

Good luck trading, and let’s see what $SPY has in store for us today!