HaiKhuu Daily Report 02/07/2024
Good morning, and happy Wednesday! This week has flown by and markets are up slightly at the time of writing this report. Market conditions remain strong, but it is just a matter of how long these conditions remain optimal. We have a couple of interesting opportunities that are going to be available to us as a result of major earnings, and I will go through them later on in this report. Just be careful and cautious in these market conditions as general momentum has been slowing down despite markets remaining in a strong position. There is a lot of risk involved with allocating here, but markets can continue to push up with ease and $SPY can make a new all-time high.
Many traders are going to have a fun time trading today, so practice safe risk management, and let’s see what happens in these market conditions.
Good luck trading, and let’s see what the markets do!
The updated $SPY daily levels are as follows:
Conversion Line Resistance: $489.46
Baseline Support: $481.24
Psychological Support: $480
Daily Cloud Support: $469.07
Thoughts & Comments from Yesterday, 02/06/2024
Yesterday was a tough day to trade because there was no solid direction in the markets, but it provided traders with many great opportunities to trade and realize gains with ease. Many traders were able to realize a significant amount of gains trading with us, with a perfect call out of a $TSLA entry at hope, and I hope you all were able to follow along, because that was an absolutely beautiful play we all caught.
We started the day with $SPY looking strong, opening at $493.50, up from the previous close, and pushing the second markets opened. $SPY continually moved up for the first half hour of the day, where we went on to make the official high of the day trading at $494.32, and coming down extremely quickly to officially go red for the day, breaking below $492.50. The selling was extremely quick, and made trading difficult for the majority of traders attempting to allocate. We chopped around the previous close for the rest of the morning, until the lunchtime lull where conditions started to get better and watched as $SPY moved up slightly.
The movement up was relatively small, and was nothing of major significance, and was quickly sold off, with chop being the majority of the movement for the rest of the day. $SPY continually chopped around the previous close price, breaking out to hit $493.50, and quickly bouncing back down to the $492.50 range. We did see some bullish momentum during the final twenty minutes of the day which was great, but it was generally an extremely tough time for the markets, despite us closing green on both an intraday and overall basis. We ended the day with $SPY trading at $493.98, up $1.43 from the previous close, or up approximately 0.3% with an intraday bullish movement of $0.48.
Markets were not favorable for many, but it provided others with amazing opportunities to trade and realize gains in the process. I hope you all were able to follow our alert on $TSLA yesterday, and realized a significant amount of gains in the process. It was an amazing day for the traders in our community, so let’s see what the markets have in store for us today!
Thoughts & Comments for Today, 02/07/2024
Today is going to be a confusing time for many traders. With the slight bullish momentum, it is difficult to gauge the sentiment in the markets. Conditions are strong in the markets, but momentum is slowing down, the real major thing to look out for is opportunity. There are going to be organizations that really don’t do much, IE $MSFT yesterday, and there will be organizations that move up nicely. IE $TSLA yesterday. It is just a matter of finding what you are confident in, and finding the organization that is trending. Part of it is luck, and the other part is being able to confidently allocate comfortably. The best traders are going to be able to find a mix of the two. Just make smart decisions and simply follow the money.
A general warning that I have been saying recently, and I do want to continue to reaffirm, is just to remember that market conditions are strong at the moment, but we can very easily come down. With the rate the markets have continued to move up, we will see a dip, it is just a matter of when. This is not us saying that $SPY is going to drop to make new 52-week lows anytime soon, but there is going to be a shift in general market momentum and confidence, mostly as interest rate conversations are happening, and we start to see rate cuts. So tread lightly and know we will see a market shift in the future, practice risk management now, and look to maximize the gains you are able to generate in these conditions.
One play that really interests me right now is $SNAP. They have fallen heavily on earnings as a result of a revenue miss. This is a terrible time for anyone who is allocated to $SNAP, but this is giving us an amazing opportunity to become vultures on this news. I am looking to sell a significant amount of CSPs on $SNAP, to collect premium against this significant movement. I personally am very excited to play this, but at the same time, I would advise extreme caution in the process. If you do not know how to sell CSPs, do not attempt to take this play as you will get burnt, but if you are a diligent trader, you should be able to capitalize on this insane movement with relative ease. I plan on selling CSPs around open, and slowly scaling in depending on the general movement of $SNAP. I will cut the position quickly, with the anticipation of closing the position out within the first hour of the day. This is an extremely risky play that I would only advise to the stronger traders, but will be an amazing opportunity to realize gains and capitalize on the death of $SNAP.
For my allocations today, the primary position I will be looking to take will be to allocate into those $SNAP CSPs at open. My concern is active selling of $SNAP after open, but with the price point that $SNAP is currently trading at, there is such a low barrier of entry that I do believe there is a great chance we see a movement up after open that gives us the ability to capitalize on what I believe is a highly oversold position. I am not hyper-bullish on $SNAP, nor would advise an allocate into the organization for the long haul, but I believe that these current conditions are presenting us with an amazing opportunity to allocate into $SNAP with confidence. I plan on exiting this position extremely quickly and realizing gains within the first hour, but it is just a matter of what strike price I decide to sell. I plan on going highly OTM, but it all comes down to the amount of premium I can generate in the process. I’ll obviously look to actively scalp and trade when given an opportunity to do so throughout the day, but the main priority of this play is allocating into $SNAP and capitalizing on this insane post-earnings sell off.
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, $SNAP, $TSLA, $BABA, $RBLX, $NVDA, $SMCI
LONG OPPORTUNITIES:
Long-Term Dividend - $GAIN / $JEPI
Long-Term Investment - $KO / $BA
Speculative Re-Entry - $DIS / $RIVN
Economic News for 02/07/2024
U.S. Trade Deficit - 8:30 AM (ET)
10-Year Note Auction 1:00 PM (ET)
Consumer Credit - 3:00 PM (ET)
Notable Earnings for 02/07/2024
Pre-Market Earnings:
Alibaba (BABA)
Uber Technologies (UBER)
CVS Health (CVS)
Roblox (RBLX)
Hilton Worldwide (HLT)
Yum! Brands (YUM)
CDW Corp (CDW)
Emerson Electric (EMR)
Carlyle Group (CG)
Fox Corp (FOXA)
After-Market Earnings:
PayPal (PYPL)
Disney (DIS)
Arm Holdings (ARM)
Mattel (MAT)
Paycom Software (PAYC)
McKesson Corp. (MCK)
O'Reilly Automotive (ORLY)
Allstate (ALL)
Paycor HCM (PYCR)
Coty inc (COTY)
Wrap up
This will be a fun day for the markets, let’s see what the markets have in store for us and maximize the opportunities that are available. Many traders are going to have a phenomenal time, it is just a matter of capitalizing on the right positions, practicing risk management, and realizing gains when possible. Look into those $SNAP CSPs and have a great time in the process. Let’s realize some gains, and follow the market momentum!
Good luck trading, and have a lot of fun trading today!