HaiKhuu Daily Trading Report

Good morning, and happy Tuesday! Markets are down slightly at the time of writing this report as momentum is continuing to slow down. There is still ridiculous strength in the markets, but I would be extremely cautious in these conditions. Many organizations are trending, and many will significantly outperform in the short term, so find the trend, and follow it to the best of your ability.

I would advise caution if you are attempting to force any position in these current conditions. Many people are going to be able to do extremely well, and many more will realize losses in these conditions. So make some smart plays, realize gains when you can, and tread lightly. There is a lot of downside risk in the markets, but it is just a matter of when we start a reversal. Make some smart plays, practice safe risk management, and do what you can to have a great time!

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

The updated $SPY daily levels are as follows:
Conversion Line Resistance: $489.46
Baseline Support: $481.24
Psychological Support: $480
Daily Cloud Support: $468.62

Thoughts & Comments from Yesterday, 02/05/2024

Yesterday was a confusing time to trade. There were many opportunities to trade, but there were a lot of general difficulties for the majority of traders. Many traders were profitable throughout the day, but many more realized losses. Conditions were choppy, but relatively momentum-based where if you simply followed the trend, you would have been able to realize gains.

We started the day with $SPY opening at $493,65, down slightly from the previous close on Friday. Conditions displayed weakness from the get-go as $SPY dropped instantly from open, but remained relatively neutral until 10 am EST when major economic news came out, causing the markets to quickly sell off, and make the official low of the day trading at $490.24. This was tough as market momentum was extremely weak and caused a significant amount of fear, but this did give us an amazing buying opportunity leading into the lunchtime lull.

During the lunchtime lull, we watched as market momentum shifted and there was strength being displayed as people bought the dip and markets recovered in the process. $SPY rallied in the early afternoon and continued to push where it went on to make the official high of the day trading at $494.17. Conditions were strong as markets were slightly green on the day, but we did watch as markets came down slightly leading into close. We ended the day with $SPY trading at $492.55, down $1.80 from the previous close, or down approximately 0.4%, with an intraday movement of -$1.10. It was a tough day for the markets but consistently presented us with opportunities to trade and realize gains. I hope you all had a wonderful time trading yesterday and realized gains in the process!

Thoughts & Comments for Today, 02/06/2024

Today is going to be an extremely tough day to gauge during the pre-market session. Markets are displaying signs of short-term weakness, despite having strength on a larger timeframe. I would be extremely cautious if you are attempting to trade, but at the same time, I would look for opportunities to simply follow the momentum in the markets. The markets have been extremely momentum-based recently, so look for opportunities to follow the trend. This does not mean being overly bullish or bearish just yet on a larger timeframe, but I would look for short-term positions that you are confident in, and quickly realize gains.

One position that I do want to spend a little time talking about is $TSLA. We have seen $TSLA drop 27% YTD and is down over 50% from the peak. It is starting to get back into load-up territory, but market conditions have not been favorable with this downfall. Tesla has only continued to slip as $SPY is making all-time highs, which is not a great sign, because if the markets continue to fall, this will be terrible as $TSLA will fall with the markets. We are under all major levels of technical support, and we are not at a place of confident entry yet, nor have shown signs of a reversal. But I will say that $TSLA is starting to get within entry range. It is a risky speculative position entering into a position like $TSLA, mostly with the downside risk that is involved with allocating into them right now, but the more Tesla comes down, the higher the likelihood that it has to have an extremely quick recovery. I believe that $TSLA in the $160-180 range is a risk that is worth taking but is something that you should be overly cautious entering heavily into because we can easily see continue to fall. I am looking to start to scale into Tesla slowly as we are at the upper end of the entry range now, and will continue to scale accordingly as it comes down.

Please just continue to practice safe risk management with both Tesla and general allocations in the markets. There is a significant amount of difficulty attempting to allocate into the markets with confidence at this point, but if you can find deep value in the markets, that is all you need in the short term to be able to realize gains. Find positions you are confident in, scale in where you are comfortable, and realize gains. This is not the time to be greedy, so take your winners in stride, and try to make them as consistent as possible.

For my allocations today, I personally will not be attempting to actively scalp or trade too heavily as a result of my personal confidence in the markets. I do not want to overextend myself or overtrade while conditions are not optimal. I believe there will be many opportunities that are presented to us across the board, but I do not believe they will be readily available, or easy to spot in real-time. The main priority I will have throughout the day will be to attempt to time out an initial entry on $TSLA. This will most likely be a quarter allocation I will be purchasing today, scaling in slowly when I have the confidence to do so. I do not want a full allocation in $TSLA right now, mostly because the markets are not displaying confidence. I’ll let you all know in real-time when I start entering 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, $TSLA, $RIVN, $BABA, $DIS, $MSFT, $AAPL, $NVDA, $SMCI

LONG OPPORTUNITIES:

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

Economic News for 02/06/2024

US Redbook - 8:55 AM (ET)
3-Year Note Auction - 1:00 PM (ET)

Notable Earnings for 02/06/2024

Pre-Market Earnings:

Eli Lilly & Co (LLY)
Fiserv (FI)
Spotify Technology S.A. (SPOT)
BP p.l.c. (BP)
Toyota Motor (TM)
Cummins (CMI)
Spirit AeroSystems Holding (SPR)
AMETEK (AME)
DuPont (DD)
Hertz Global Holdings (HTZ)

After-Market Earnings:

Snap (SNAP)
Ford Motor Company (F)
Enphase Energy (ENPH)
Chipotle Mexican Grill (CMG)
e.l.f. Beauty (ELF)
Fortinet (FTNT)
VF Corp (VFC)
Amgen (AMGN)
MicroStrategy (MSTR)
Gilead Sciences (GILD)

Wrap up

This should be an extremely interesting day for the markets with a significant amount of confusion making it difficult for traders to navigate with confidence. I would be extremely cautious in these conditions as markets, but look out for opportunities to allocate into the markets when comfortable. Make sure to practice safe risk management, and look to realize gains quickly if you are actively scalping or day trading. This will be a fun time, so let’s see what the markets have in store for us!

Good luck trading, and let’s have some fun!

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HaiKhuu Daily Report 02/06/2024