HaiKhuu Daily Report 02/01/2024
Good morning, and welcome to February!!! $SPY has been extremely wild since the beginning of 2024 and congratulations on surviving January. It was an amazing start to the year and markets continually hit new all-time highs. There was a significant amount of strength you could have easily capitalized on, and it was genuinely an amazing time full of opportunity. Let’s see what February has in store for us and make the most out of these strong market conditions.
$SPY is up at the time of writing this report, but down from the relative highs, this should be an interesting day for the markets as we are testing the daily support levels. It will be interesting to see if $SPY ultimately pumps or rejects in these conditions. There is an extremely high chance we bounce, but tread lightly at this support, and watch if we which direction head. Follow the general momentum and do not fight the trend.
We have major earnings after hours today, so this is going to be an extremely interesting day.
Good luck trading, and let’s see what the markets do!
The updated $SPY daily levels are as follows:
Conversion Line Resistance: $487.20
Baseline Support: $479.03
Psychological Support: $480
Daily Cloud Support: $465.13
$SPY Daily Candles - [01/31/2024]
Thoughts & Comments from Yesterday, 01/31/2024
Yesterday was a bloody day for the markets as many traders realized significant losses in the process. Some traders were extremely profitable, but it was difficult to realize any sort of significant gains with confidence. Interest rates remained the same, and $SPY did not react well to that news, as we continually fell throughout the day. It was an unfortunate time, and hopefully, you all did alright.
We started the day with $SPY down from the previous close, opening at $488.65. We were down heavily as a result of general tech earnings outperforming expectations, but markets were not confident in the process, as organizations like $MSFT, $AMD, and $GOOGL were down heavily. We exited our $SBUX position at open, realizing a significant amount of gains, but general market conditions only continued to weaken in the process. We made the official high of the day early in the morning, making the high trading at $489.08. Conditions were looking weak as we continued to sell off throughout the entire morning, and watched as selling only continued to increase into the lunchtime lull.
The interesting part of the day was leading to the Fed’s decision on the interest rates. We went into the event with the expectation that rates were to remain unchanged, and we have seen in the past when that sentiment caused the markets to rally, but yesterday was a different scenario. Markets continually came down, once the announcement was made, and made a relative low trading right above $486. We only started to recover as Jerome Powell made his remarks, and the markets rallied to test the official high of the day before ultimately selling off afterward and sealing the fate of the markets.
$SPY continually made lows of the day as organizations continually sold off during power hour, where we made the official low of the day at close, ending the day trading at $482.88, down $8 from the previous close, or down approximately 1.6%, with an intraday bearish movement of -$5.77. It was an extremely difficult day to trade, and not many traders were able to realize any sort of significant gains in the markets. If losses were incurred, it is unfortunate, but do not be upset with yourself unless mistakes were made in the process. Move on, find better trades, and make the losses back.
Hopefully, yesterday was not the worst for you. I know many traders in the community did phenomenally, so if you did well, congratulations because you are one of the few traders who was able to realize any sort of gains trading yesterday. Let’s see what the markets have in store for us and prepare to play this reaction.
Heatmap - $SPY 01/31/2024
Thoughts & Comments for Today, 02/01/2024
Today is going to be a confusing day for the markets as a result of the movement we saw yesterday. We are below the first level of daily support on $SPY, and realistically there is a lot more downside risk in the markets after breaking below this level, but at the same time, market conditions are still extremely strong. There is a high likelihood that the selling yesterday was exaggerated, and equities were oversold, so we could easily see a bounce in the markets. Tread lightly on these market conditions, but look to follow the general momentum and trend of the markets.
We are back in greed in the fear and greed index, dropping heavily from the extreme greed we were in just a couple of days ago, but we predicted that this would happen. Hopefully, you were able to allocate accordingly based on our sentiment in the markets and prepare for the drop. I am extremely liquid in my account, and I will be planning on using today to actively trade and reallocate capital where I am confident. I am not sure if the markets are going to rally from here and make new all-time highs in the near future, but all I know is many organizations are overvalued, but oversold in the short term that we can easily capitalize on in the markets today.
For the majority of traders, if you have the capital available and the day trades, I would highly suggest you look into actively day trading and scalping in these conditions. Equities are down heavily as a result of yesterday with many of them being oversold in the short term. This is going to be an amazing day to attempt to buy the dip. This is not an endorsement to go long in these market conditions and to actively buy and hold in the markets as there is not enough blind confidence in the markets at this point to do so, but this is going to be an amazing opportunity to simply buy the dip, and attempt to ride a quick movement up. This is going to be extremely risky entering here though, because market sentiment is weak in the short term, and traders are not comfortable in these conditions, but as people who understand the markets better than the majority, this is the time that we should take advantage of. Buy when people are fearful, and sell when they are cocky. Traders are starting to be fearful after the movement down yesterday, so this is the time for us to have some fun, take advantage of opportunities, and realize some gains.
My plans for today are extremely simple. I am looking to take on some risk in these market conditions, and I want to allocate heavily into the market because I think this is one of those opportunities for us to buy the dip with confidence. I do not anticipate entering into equities long at this point, but looking for opportunities to both day trade and scalp in the process. I’ll be looking for opportunities either trading $SPY & $AAPL or looking towards scalping higher-beta tech organizations like $NVDA or $TSLA. Regardless of whichever position I ultimately end up allocating into, I will realistically NOT hold any of those positions and will exit everything by the end of the day.
If you want to watch any of my allocations, they will be posted live in 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, $RIVN, $TSLA, $META, $AAPL, $NVDA, $AMZN, $AMD
LONG OPPORTUNITIES:
Long-Term Dividend - $GAIN / $JEPI
Long-Term Investment - $KO / $BA
Speculative Re-Entry - $DIS / $RIVN
Economic News for 02/01/2024
Jobless Claims - 8:30 AM ET
U.S. Productivity - 8:30 AM ET
S&P U.S. Manufacturing PMI (final) - 9:45 AM ET
ISM Manufacturing - 10:00 AM ET
Notable Earnings for 02/01/2024
Pre-Market Earnings:
Altria Group (MO)
Royal Caribbean Cruises (RCL)
Peloton Interactive (PTON)
Enterprise Products Partner (EPD)
Merck & Co (MRK)
SiriusXM Holdings (SIRI)
Cardinal Health (CAH)
Honeywell International (HON)
Stanley Black & Decker (SWK)
Tractor Supply Company (TSCO)
After-Market Earnings:
Apple (AAPL)
Amazon (AMZN)
Meta Platforms (META)
Atlassian Corporation (TEAM)
United States Steel Corp (X)
Clorox (CLX)
Sketchers U.S.A. (SKX)
Deckers Brands (DECK)
Microchip Technology (MCHP)
Orchid Island Capital (ORC)
Wrap up
This will be an extremely interesting day for the markets. There is a lot of general confusion as a result of the movement we have seen in the markets, meaning that we are going to see many people realize losses, but at the same time, there will be many opportunities to realize a significant amount buying when there is general fear in the markets. I am confident in people’s ability to navigate these conditions, but just remember to be extremely cautious and careful, and practice risk management. Do not get greedy, and be happy realizing any form of gains when attempting to trade today. This will be a good time, so let’s do what we can to maximize the opportunities that are available to us, and minimize the risks.
Good luck trading, and let’s see what direction the markets want to go!