HaiKhuu Daily Report 02/20/2024
Good morning, and happy Tuesday! I hope you all enjoyed the long weekend and are ready for a fun, shortened week for the markets! I am expecting to see interesting movements in the markets, and this should be an extremely fun time. Let’s hope $SPY breaks out and makes a new all-time high and look out for great opportunities across the board.
Markets are down at the time of writing this report, and $SPY is testing the daily conversion line support, so please be careful in these market conditions but look for opportunities to capitalize on this general market momentum.
Good luck trading today, and let’s see what the markets have in store for us this week!
The updated $SPY daily levels are as follows:
Conversion Line Support: $497.11
Baseline Support: $486.69
Psychological Resistance: $500
Daily Cloud Support: $469.25
$SPY Daily Candles - [02/16/2024]
Thoughts & Comments from Last Week
Last week was an interesting time. We saw a large movement down on Tuesday on economic news, a test of daily support, and a beautiful bullish recovery. Markets were extremely optimistic and presented us with many phenomenal organizations. Hopefully, you were able to capitalize on the market momentum and profit in the process.
We started the week with $SPY trading at $501.21, looking strong and moving up instantly; we made a new all-time high trading with $SPY trading at $503.50. Conditions were looking good, but I watched as $SPY did sell off into the close, ending the day trading at $500.98. It was only a small overall intraday movement, but we did watch as $SPY sold off heavily from the top.
Tuesday was an extremely bloody day for the markets. We dropped heavily during the pre-market session on CPI numbers, and watched as $SPY continually sold off throughout the day. We opened the day trading at $494.08, down significantly from the previous close, and made the official low of the day trading at $490.72, down over $10 for the day. We watched as the markets recovered to end the day trading at $494.08, down $0.49 on an intraday basis and down $6.90 overall, making that one of the largest bearish movements we’ve seen in the markets for a long time. This did give us an amazing dip-buying opportunity, though.
Wednesday was an alright day for the general markets as we did start to recover after buying the dip. The markets bounced nicely above the daily conversion line and moved up accordingly, where we started the day trading at $496.79 and watched as we pushed to test the $500 resistance, making the official high of the day trading at $499.07. Conditions were not perfect, but it was a beautiful recovery, providing us with an amazing opportunity to buy the dip.
Thursday was another great day for the markets; $ SPY broke back above $500, displayed confidence, and reaffirmed that the dip we saw on Tuesday was not concerning. $SPY opened the day trading at $499.29, broke above $500, and ended the day with $SPY trading at $502, testing the all-time high and providing the markets with confidence despite many traders actively fearing the current conditions.
We ended the week with some general bearish momentum on Friday as $SPY did slip back below $500. We started the day with $SPY trading at $501.70, down slightly from the previous close but displaying strength at the level not incurring a significant amount of general bearish momentum in the markets. We watched as $SPY heavily fluctuated intraday, selling off multiple times but recovering in the process, where we made the official high of the day trading at $502.86, but dropping heavily leading into power hour. We ended the day with $SPY trading at $499.51.
Overall, for the week, $SPY dropped $1.70, or approximately 0.35%, which realistically is not a significant movement overall, but it did provide us with a new all-time high, an amazing dip buying opportunity, and a significant amount of weakness coming from the magnificent seven. It is extremely interesting looking at the heatmap for the week, as market conditions remained relatively neutral, but general tech was extremely red, with $MSFT down almost 4%, $GOOGL down almost 6%, and $AAPL down almost 3.5%.
Let’s see what the markets have in store for us this week, we either will sell off after breaking below the daily support, or watch as the markets recover and breakout nicely and possibly make a new all-time high!
Heatmap - $SPY 02/16/2024
Thoughts & Comments for Today, 02/20/2024
Today is going to be a fun day for the markets. With the way everything stands at this moment, this is going to be extremely confusing and difficult to gauge which direction we ultimately go. Markets are either going to move up nicely as we bounce off this major support, or we ultimately are going to break below this support on the daily, and get sent to a place of confusion. Regardless of which direction we take, this is going to be an extremely interesting move with many opportunities to trade and realize gains. I think that this is going to be a great dip-buying opportunity, but it is just a matter of catching the right organization and being a little bit lucky in the process.
Realistically, I would be careful looking at semiconductors and some of these major tech organizations but look at them for a leading indicator on both how and where the markets will move. If we see both semis and major tech moving up, we will be in a strong position in the general markets, but it is just a matter of timing out the allocation correctly and finding the right position.
Do not look for organizations that are not trending, and don’t try to become a magician who can predict what is going to start moving. Find an organization that is trending, and find a way to capitalize on the strong general momentum in the process. Many individuals will have a difficult time realizing gains, but if you simply just follow the market momentum, you should have an extremely easy time capitalizing on these current conditions.
One organization that I do want to put on your radar today is $GRYP. I do want to say I personally have a large allocation in the organization at this moment, and they are a smaller organization, so tread lightly, but they are a Bitcoin miner that produces, on average, 2 BTC a day and is heavily undervalued right now. This is a great opportunity to capitalize on BTC and get some crypto exposure without having to buy BTC at these 52-week highs and praying. Please do your research on this organization prior to purchasing, and practice safe risk management if you do attempt to purchase. Just remember this is not financial advice, nor a signal to buy or sell any securities, and that I personally do have a vested interest in the success of this organization.
My plans for today are honestly to sit back and watch the markets. I believe that there are going to be many opportunities to allocate and trade in the markets, but I am not confident in these conditions to attempt to be hyper-aggressive. I may attempt to scalp and trade, but I am not comfortable nor confident enough in these market conditions to want to overallocate and force any positions. I’ll call out the allocations I am confident in, but just know that I am not overly ambitious to force any positions, mostly on a shortened week for the markets.
If I do see any opportunities, I’ll let you all know in real-time in the HaiKhuu Discord.
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, $GRYP, $CACI, $RIVN, $TSLA, $BABA, $SMCI, $MSFT, $AAPL
LONG OPPORTUNITIES:
Long-Term Dividend - $GAIN / $JEPI
Long-Term Investment - $KO / $BA
Speculative Re-Entry - $DIS / $RIVN
Economic News for 02/20/2024
Leading Economic Indicators - 10:00 AM (ET)
3-Month Bill Auction - 11:30 AM (ET)
6- Month Bill Auction - 11:30 AM (ET)
52-Week Bill Auction - 11:30 AM (ET)
Notable Earnings for 02/20/2024
Pre-Market Earnings:
Walmart (WMT)
Home Depot (HD)
Axsome Therapeutics (AXSM)
Medtronic (MDT)
LGI Homes (LGHI)
Barclays Bank PLC (BCS)
Tri Pointe Homes (TPH)
Armstrong World Industries (AWI)
CenterPoint Energy (CNP)
KBR Inc (KBR)
After-Market Earnings:
Palo Alto Networks (PANW)
SolarEdge Technologies (SEDG)
Teladoc Health (TDOC)
Realty Income (O)
RingCentral (RNG)
Caesars Entertainment (CSR)
Public Storage (PSA)
Diamondback Energy (FANG)
Medifast (MED)
Toll Brothers (TOL)
Wrap up
This should be a fun time for the markets. Look for opportunities to be available, but make sure to practice safe risk management in the process. Many people will be able to realize a significant amount of gains with ease, and others will have an extremely difficult time capitalizing on these conditions. Look to be consistent throughout the day, practice safe risk management, and limit your downside risk. Don’t forget this is going to be a shortened week, so people are going to want to be irrational and over-trade today. Don’t get emotional and take advantage of the people who are over-trading.
Good luck trading, and let’s see what the markets do this week!