HaiKhuu Daily Trading Report

Good morning, and happy Wednesday! Hope you all have been listening to our warnings about the markets because markets are down with many major tech organizations having earnings. We have the FOMC’s decision on the interest rate coming out at 2 PM EST today and have Jerome Powell speaking at 2:30 PM EST, so be careful and cautious while treading lightly on these market conditions.

This will be an interesting day with many opportunities to trade, so make some smart decisions, practice risk management, and be careful attempting to trade leading into 2 PM EST.

Let’s have some fun trading, and see what happens!

The updated $SPY daily levels are as follows:
Conversion Line Support: $484.08
Baseline Support: $479.03
Psychological Support: $480
Daily Cloud Support: $464.85

Thoughts & Comments from Yesterday, 01/30/2024

Yesterday was an extremely interesting day for the markets. Conditions were difficult to navigate, but there were many opportunities to trade. $SPY made a new all-time high in the process, and many traders were able to realize some nice gains. It was a lot of fun attempting to scalp and actively trade throughout the day. Hopefully, you all were able to capitalize on the general market momentum and realize a significant amount of gains.

We started the day with $SPY down slightly from the previous close, opening the day trading at $490.52. Conditions were not perfect going into open, but there was bullish momentum early in the morning that traders could have easily capitalized on. We only came down as a result of economic news, causing the markets to quickly drop, but all of the losses were quickly recovered throughout the day leading into the lunchtime lull. At that time, $SPY made a new all-time high before quickly dropping again as volume started to increase and selling was expedited leading into the afternoon. During the sell-off after lunch, $SPY made the official low of the day trading at $490.11. Conditions were not ideal at that time but gave us an amazing opportunity to allocate into the markets.

In the afternoon, once the selling momentum slowed down, we did watch as there was a double bottom on $SPY as we recovered slowly leading into power hour. Conditions were not perfect, but there was general purchasing in the markets leading $SPY to quickly snap up and make a high of the day, and a new all-time high during power hour, trading at $491.61. We did end the day with the markets coming down slightly into close, where er officially ended the day with $SPY trading at $490.89, down $0.38 from the previous close, or down approximately 0.08%, with an intraday bullish movement of $0.37.

It was a difficult day for the markets, but many opportunities presented themselves throughout the day. The toughest part honestly was during the after-hours session, watching as many major tech organizations sell off on earnings news, despite numbers coming back strong. It’s funny just looking back at previous reports because this has been exactly what we have been warning people about. If you lost money trading yesterday, C’est la vie, move on and realize more gains elsewhere, and if anyone invested in overpriced bean water with us in speculation for earnings, congratulations because we are sitting pretty at the time of writing this report.

Thoughts & Comments for Today, 01/31/2024

Today is going to be a tough day for the markets. Market conditions are still extremely strong, but we are displaying signs of short-term weakness with many of these major tech organizations coming down on earnings. I would be extremely careful trying to buy this dip, but realistically, everything is going to come down to the Fed’s decision on the interest rate today at 2 PM EST. We will see movement in the markets throughout the day, but the majority of the movement we will see is directly in preparation for that decision. Yes, organizations will move accordingly just like in normal market conditions, but we will see more movement specifically with people preparing for that decision. It is genuinely a toss-up of which direction we go, and it is a matter of where you believe the interest rate will go.

We have seen that historically, rate cuts lead to a decline in the general markets, while hiking rates are not great for the economy, but have a positive outlook on general equities. I personally think there is an extremely low chance that the rates get cut this month, but what I believe does not matter in the grand scheme of things. In the case that the rates do not get cut and there is a positive outlook on the general economy, we will be in a great spot for the markets to continue to rally and hit new all-time highs. I would not advise anyone to purchase simply as a result of my sentiment because I do not have a crystal ball predicting the markets, but I can give you all insight into my beliefs.

In the case that we do see rates get cut today, please tread extremely lightly as this is a terrible sign for the markets in the short term, but will give us an amazing opportunity to allocate long into the markets. Many organizations are highly overvalued at this point, and I believe that this could be a catalyst for them to come back down to fair value. This would be an extremely tough ride down in the markets, but what it will do is allow us to load up on solid equities at a phenomenal price for us to buy and hold organizations with confidence. If we cut rates, anticipate my suggestion for the majority will be to sit on cash, actively day trade & scalp the short-term opportunities, and wait until we have finished cutting rates or have found a level of major support, to start to slowly purchase equities and simply hold them at an amazing price.

Please make sure to practice risk management while trading today, as I have been saying before. Many traders will do phenomenally today. The traders who are lucky, the traders who time their positions perfectly, and the confident traders who understand how to navigate these conditions. All of those individuals will do well, but many traders will realize losses in the process. If you are not confident in trading, today is not going to be the day you should look to take on a lot of risk.

For my personal allocations today, it all will come down to the general market sentiment after open, and if there is confidence in equities. I am personally looking to exit the $SBUX equity that I entered into yesterday, and I do not have plans to purchase this dip in tech. I will be looking for an opportunity to short around open whenever we see a reversal in the markets leading into the lunchtime lull and will be looking for an opportunity to reverse the play and allocate long leading into the Fed’s decision. I do NOT anticipate holding any positions leading into that decision at 2 PM EST, and I would not advise many traders to attempt to scalp and trade between 2-2:30 PM EST. I would rather miss out on the initial movement and be reactionary, versus attempting to enter early and speculate, and gamble on the movement.

Just be smart in these market conditions and when I get into anything, I’ll let you all know in real-time on the HaiKhuu Discord.

HaiKhuu Proprietary Algorithm Report

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, $SBUX, $RIVN, $AAPL, $MSFT, $AMD, $NVDA, $TSLA

LONG OPPORTUNITIES:

Long-Term Dividend - $GAIN / $JEPI
Long-Term Investment - $KO / $BA
Speculative Re-Entry - $DIS / $RIVN

Economic News for 01/31/2024

ADP Employment - 8:15 AM ET
Employment Cost Index - 8:30 AM ET
Chicago Business Barometer (PMI) - 9:45 AM ET
FOMC Interest-Rate Decision - 2:00 PM ET
Jerome Powell FOMC Press Conference - 2:30 PM ET

Notable Earnings for 01/31/2024

Pre-Market Earnings:

Boeing (BA)
Novo Nordisk (NVO)
Phillips 66 (PSX)
MasterCard (MA)
Roper Technologies (ROP)
Thermo Fisher (TMO)
Boston Scientific (BSX)
Automatic Data Processing (ADP)
Nasdaq (NDAQ)
United Microelectronics (UMC)

After-Market Earnings:

Qualcomm (QCOM)
Corteva (CTVA)
Align Technology (ALGN)
Wolfspeed (WOLF)
AFLAC (AFL)
AvalonBay Communities (AVB)
Century Communities (CCS)
Metlife (MET)
Nextracker (NXT)
C.H. Robinson Worldwide (CHRW)

Wrap up

This is going to be a wild day for the markets with both tech earnings negatively impacting the markets and the Fed’s decision on the interest rates. Tread lightly on these market conditions but be excited knowing about the opportunities that will be available. Don’t be overly ambitious and make sure to be safe while allocating into the markets. There are going to be many people who realize losses today, so practice risk management, and look to increase your potential, but be safe and cautious in the process. Simply follow the trend and do not attempt to trade aggressively around and after 2 PM EST.

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

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HaiKhuu Daily Report 01/31/2024