HaiKhuu Daily Trading Report

Good morning, and happy Thursday! Tesla is continuing its downtrend and is having a tough time after earnings. $SPY is up slightly and this is going to be a confusing day for the markets. We can see a new 52-week high with ease, but just know that the general market sentiment going into open is pure confusion. There will be opportunities consistently presented to us, so tread lightly on these conditions, and take advantage of the opportunities that are presented to us!

Lots of losses will be generated in the markets today, so be smart and practice risk management.

Good luck trading today, and let’s see what the markets have in store for us today!

The updated $SPY daily levels are as follows:
Conversion Line Support: $479.32
Baseline Support: $477.60
Psychological Support: $480
Daily Cloud Support: $458.79

*Note, We will be testing out shortening these reports, if you have any feedback on that please message Allen on Discord

Thoughts & Comments from Yesterday, 01/24/2024

Yesterday’s market movement was tough. The bears had more opportunities to trade which is something that we haven’t been able to say for a while, and $SPY hit a new all-time high. It was a day full of opportunity, it’s just a matter of your direction and sentiment that would have caused you to realize some gains or be burnt in the process.

We started the day with $SPY opening at $487.77, up nicely from the previous close and trading at an all-time high as $NFLX created strength in the markets from their earnings. The markets dipped slightly in the morning but moved up to continually make new all-time highs leading into the lunchtime lull, and broke out of the range as volume came back into the markets.

After the lunchtime lull, $SPY made the high of the day, and the new official all-time high trading at $488.77, only up a dollar from open, but a new all-time high nonetheless. Market momentum quickly shifted in the afternoon though, as after making the new high on $SPY, we were quickly presented with bearish momentum as the markets sold off into close, making the official low of the day five minutes before the final bell, trading at $485.01. We ended the day with $SPY trading at $485.39, up $0.53 from the previous close, but down $2.76 from open.

There were many opportunities to trade both sides, but this was the first day we’ve seen in a while where I can say that the bearish traders were presented with better opportunities than the bull side traders. Let’s see what the markets do today, and see where the $TSLA takes us.

Thoughts & Comments for Today, 01/25/2024

Today is going to be a difficult day to trade with confidence. Many traders will do phenomenally, but I would tread extremely lightly as conditions are weak in the short term, and there is confusion in the markets after the movement we’ve seen with $TSLA. This is not the time to be overly bearish but is the time to prepare for possible downside in the markets. Do not look to take large risks within your portfolio, limit your exposure, and take profit on the positions you are up heavily on. Many people will have a great time attempting to trade in these market conditions, but at the same time, the individuals who don’t prepare accordingly and are overallocated will have an extremely difficult time.

One thing that I do want to warn about is the possible downside that is coming in the markets. We are seeing the range between the daily support levels continually become more narrow, meaning that general market momentum is slowing down, and we watched as volatility continued to increase throughout the trading day yesterday. Markets are still extremely strong as we are continuing to make new all-time highs, but with many organizations highly overvalued at this time, please be extremely careful allocating long into the markets. Allocating now, yes you may be able to generate realized gains in the short term, but allocating long and holding these positions and expecting to see large movements will ultimately wipe out many traders. It will be difficult to break the daily support levels we are watching, but all we need is one extremely bad day where $SPY drops 2% for people to go into panic mode. Do I think this will happen today or tomorrow? No clue, but once it does happen, because it will eventually, many people will realize significant losses.

Look for opportunities to purchase value in the markets. There are many organizations that are undervalued that are fundamentally solid that have lots of potential to move up over time, and are relatively lower risk, you will not see the same type of returns that you might see with organizations like $NVDA, but safety and allocating properly is one of the many things you have to practice to become successful and consistent in the markets.

For my allocations today, I do want to sit on my hands. I will look for opportunities that present themselves, but I am not overly ambitious in attempting to allocate long in the markets. One position I am interested in entering at this point is a highly OTM CSP on $TSLA. This is going to be a riskier allocation as $TSLA has already fallen 8%, and it can easily continue to drop. The strike that I decide on taking will ultimately come down to how much premium is available on the 2-DTE strike puts. This is not going to be a sexy play in any way shape or form, but is something I am comfortable and confident in allocating into, mostly after the significant movement we’ve seen. I’ll be able to generate passive gains with relative ease and limited risk. Outside of that CSP, I’ll be looking to scalp and day trade when given an opportunity to do so, but the primary allocation I am mentally preparing to enter right now is those $TSLA CSPs.

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
- 18 Long
- 34 Short

Largest Win:

$AWK - Short
- Took profit @ +1.56%

Largest Loss:

$DVA - Long
- Stopped out @ -1.87%

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, $NVDA, $AMD, $MSFT, $RIVN, $LCID, $BABA

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 01/25/2024

Jobless Claims - 8:30 AM ET
GDP QoQ Advance - 8:30 AM ET
PCE Prices Advance - 8:30 AM ET
Durable Goods - 8:30 AM ET
Wholesale/Retail Inventories - 8:30 AM ET
Chicago National Activity Index - 8:30 AM ET
New Home Sales - 10:00 AM ET
Kansas City Fed Manufacturing - 10:00 AM ET

Notable Earnings for 01/25/2024

Pre-Market Earnings:

American Airlines Group (AAL)
Mobileye (MBLY)
Alaska Air Group (ALK)
Dow Chemical Co (DOW)
Valero Energy (VLO)
Southwest Airlines (LUV)
Nokia (NOK)
Northrop Grumman Corp (NOC)
Comcast Corp (CMCSA)
McCormick & Company (MKC)

After-Market Earnings:

Intel Corp (INTC)
Visa (V)
Arthur J. Gallagher (AJG)
KLA Corporation (KLAC)
Western Alliance Bancorp (WAL)
Capital One Financial (COF)
T-Mobile (TMUS)
L3Harris Technologies (LHX)
Levi Strauss & Co (LEVI)
Western Digital Corp (WDC)

Wrap up

This is going to be a fun day for the markets with a significant amount of both economic news and earnings happening. So prepare accordingly and watch out for possible downside risks. Many people will generate losses while attempting to trade today, so be smart and diligent while attempting to trade, and limit your risk where possible. Let’s have some fun while trading today, but tread lightly on these market conditions and follow the general market momentum.

Good luck trading, and let’s see how the markets react today.

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HaiKhuu Daily Report 01/25/2024