HaiKhuu Daily Report 01/29/2024
Good morning, and happy Monday! Hope you all had an amazing weekend and congratulations to the Chiefs fans and the 49ers fans!
Markets are neutral at the time of writing this report. We have major economic news this week including the FOMC’s decision on the interest rates and many organizations have earnings this week including $AMD, $MSFT, $AAPL, $AMZN, and $META, so tread lightly on these market conditions but expect to see large movements in the markets. Look to realize as many gains as possible and prepare to react to any movement we see. This is going to be a week full of opportunities, so let’s have some fun and realize some gains in the process!
Good luck trading today, and let’s see what this week has in store for us!
The updated $SPY daily levels are as follows:
Conversion Line Support: $479.50
Baseline Support: $477.78
Strong Psychological Support: $480
Daily Cloud Support: $461.14
$SPY Daily Candles - [01/26/2024]
Thoughts & Comments from Last Week
Last week was a wild time for the markets with opportunities to trade in both directions. Many people had difficulties, but $SPY continued to push new all-time highs in the process. Markets were extremely inconsistent and made it difficult to navigate with both comfort and confidence in the process. Many organizations did move heavily on both general news as well as earnings, with some of the largest movers of last week being $TSLA and $INTC, both dropping heavily on earnings, while $NFLX moved up almost 20%. Many people did realize a significant amount of gains trading last week, so hopefully, you all were able to realize a significant amount of gains in the process!
We watched as markets remained extremely neutral on a day-to-day basis, but watched as there were some relatively larger intraday movements. Monday was a tight day for the markets as we watched the markets have a change in open-to-close price of $0.56, but had a wide intraday range. We opened the week with $SPY trading at $484.01, making the official high of the day trading at $485.22 and making a new all-time high, but watched as the markets sold off after and made the low of the day trading at $482.78. There was a large intraday movement that was easy to capitalize on, but watching as $SPY remained relatively neutral made it difficult to trade with confidence.
Tuesday was an alright day for the markets, but watching the intraday movement was confusing. We opened the day trading at $484.01 again, just like we did on Monday, and watched as $SPY went on to make the official low of the day trading at $482.89, before pushing up and making the official high of the day trading at $485.11, just below the all-time high, and remaining strong as markets closed at $484.86 and looking strong in the process.
Wednesday was a significantly better day for the markets though as we were able to capitalize on stronger market conditions. We opened with $SPY making a new all-time high, opening the day at $487.81, and pushed to make new highs in the process. The high of the day on Tuesday was $488.77 but watched as the markets continually sold off throughout the day, where we made the official low of the day trading at $485.01 five minutes before close, ending the day trading at $485.39, down $2.76 from open, but up $0.53 from the previous close. $SPY continued to remain relatively neutral on a larger timeframe, despite having an extremely large intraday movement.
Thursday was the weirdest day for the markets though. Traders could have capitalized on both directions but had an extremely difficult time in the process. We opened the day at $487.52, up nicely from the previous close, but watched as markets continually sold off leading into the afternoon making the official low of the day trading at $485.41. During the back half of the trading day though, $SPY did rally into close, where we ended the day trading at $488.03, up nicely from the previous close, but retaining the extremely tight intraday movement.
Friday’s movement was at least a little bit more interesting. We opened the day trading at $487.59 but watched as $SPY pushed up to make the official all-time high trading at $489.12, but watched as we did sell off to make the official low of the day trading at $486.54. Conditions were not perfect in any way shape or form, as $SPY recovered into close, ending the day trading at $487.41, down $0.18 from open. It was a great day full of opportunity, but a tough day overall.
Overall for the week, market conditions were not optimal, but it provided us with opportunities to actively navigate and realize some gains in the process. Many traders were able to capitalize on some larger movements in the markets, and many people got burnt attempting to take risks at the wrong times. Hopefully, you all were able to capitalize on the general market momentum in the markets and hopefully, you all had a great time in the process, but it is just a matter of realizing gains with confidence and being comfortable doing so in the process. Let’s see what the markets have in store for us today, and let’s have an amazing time in the process!
Heatmap - $SPY [01/22-01/26]
Thoughts & Comments for Today, 01/29/2024
Today should be a lot of fun to start the week off. We are seeing greed in the markets as $SPY is testing all-time highs again, meaning that there will be great opportunities to trade, but is a sign of fear for many traders. There is too much confidence in the markets at the moment, meaning many organizations are overbought and are at a point of extreme confidence, meaning that realistically many companies are grossly overvalued and difficult to allocate into with confidence. There will be opportunities to trade, and there will be opportunities to allocate long into the markets, but it is just a matter of navigating these conditions with confidence and remaining consistent in the process. We do have major economic news and earnings this week, so be careful and tread lightly as we are expecting to see large movements in the markets that we can capitalize on.
One big earnings I will be watching today will be $SOFI. They have earnings pre-market which means by the time open happens, the initial movement will have already happened, meaning that we get to react to the movement and capitalize on the opportunities available. The expected move on $SOFI is currently $1.25. This is a crazy expected move and is already up nicely during the pre-market session. In the case that $SOFI does decide to sell off, this in my opinion is going to give us an amazing opportunity to scalp equities towards the upside, and sell CSPs at the bottom to collect a significant amount of premium in the process. In the case that $SOFI continues to move up through earnings, this will be a great time as there will be strength in the equity in the short term where you can ride the position long, and exit the position you are riding. Many people will have a great time in the process and realize a significant amount of gains, but there is an absurd amount of risk with this position at this time. I do not recommend inexperienced traders to attempt to capitalize on this general $SOFI movement, but if you are looking to take on some risk, or you are confident in your ability to navigate the markets, this will be an extremely fun play to watch and capitalize on throughout the day.
The biggest thing that I want to bring up right now is to practice risk management in these market conditions. I know I’ve said this before, and I will consistently say it again, but please tread lightly on these conditions. Many people will be able to capitalize on these conditions extremely easily, but many more people will be burnt in the process. I would not advise any of you to allocate long into the markets at this point, mostly in overvalued positions. Yes, you may be able to realize gains by buying high and selling higher, but you have to remember that eventually, once the Jenga blocks start to fall, it is game over and you don’t want to be riding that wave when everything comes crashing down.
For my allocations today, the biggest play that I will be watching, and I’ve already brought this up, is $SOFI. There is a lot of potential within that organization to move up over time, and I am extremely excited to watch as it moves, but I will be reactionary towards the organization, and play with the trend. In the case that $SOFI drops heavily, I will look to sell CSPs to capitalize on the downside and look to scalp towards the upside, and in the case $SOFI moves up, I’ll allocate long with a tight stop, and simply ride the momentum. I am nervous about watching a drop, but in the case that the position works out accordingly, I believe that we should all be able to realize gains with ease in that position. When I decide to get into any side of that play, I’ll be posting it live in the HaiKhuu Discord.
HaiKhuu Proprietary Algorithm Report:
Stats of the Intraday Bot since release:
Largest Win:
$APTV - Short
Took profit @ +5.14%
Largest Loss:
$WBA - Long
Stopped out @ -2.15%
If you took every position, the Expected return throughout the month: 2.82%
Total Trades: 768
363 Long Positions
405 Short positions
Average Returns:
Winners: +0.74%
Losers: -0.47%
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, $SOFI, $RIVN, $LCID, $TSLA, $NVDA, $AMD, $MSFT, $AAPL
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 01/29/2024
Dallas Fed Mfg. Bus. Index - 10:30 AM ET
6-Month Bill Auction - 11:30 AM ET
Notable Earnings for 01/29/2024
Pre-Market Earnings:
Sofi (SOFI)
Franklin Resources (BEN)
Alliance Resource Partners (ARLP)
Bank of Marin (BMRC)
Royal Phillips (PHG)
Pacific Premiere Bancorp (PPBI)
Provident Financial Holdings (PROV)
After-Market Earnings:
SuperMicro (SMCI)
Cleveland-Cliffs (CLF)
Nucor (NUE)
Celestica (CLS)
F5 Networks (FFIV)
Whirlpool (WHR)
Crane (CR)
Graco (GGG)
Alexandria Real Estate (ARE)
Wrap up
This will be an extremely interesting week with many major earnings and economic news coming out. So tread lightly on these market conditions, not only today but throughout this entire week. Don’t over-allocate into the markets, and do what you can to maximize the opportunities that are available to you. We should be presented with some great volatility and movements in both the markets and individual stocks, so prepare accordingly and practice safe risk management in the process!
Good luck trading, and let’s see what the markets have prepared for us!