HaiKhuu Daily Report 02/21/2024

Daily Report
Written By Allen Tran

Good morning, and happy Wednesday! Market conditions have been extremely confusing yet extremely profitable. I hope you all have enjoyed these opportunities and are capitalizing on this general market momentum! $SPY is currently under the daily conversion line resistance, so please look to be careful in these market conditions and practice safe risk management in the process.

We have the FOMC minutes coming out today, which will heavily impact the general market direction, so tread lightly and practice safe risk management. Many traders are going to have a difficult time navigating these conditions both consistently and confidently, so simply follow the general market momentum and watch if we ultimately break out and push or come down to the next level of support. 

This is going to be a fun trading day, so be smart, be safe, and do not get greedy. 

Good luck trading today, and let’s see where $SPY goes. 

The updated $SPY daily levels are as follows:
Conversion Line Resistance: $497.11
Baseline Support: $486.69
Psychological Resistance: $500
Daily Cloud Support: $469.49

$SPY Daily Candles - [02/20/2024]

Thoughts & Comments Yesterday, 02/20/2024

Yesterday was a tough day to navigate. There was significant bearish momentum across the board that made it extremely difficult to trade with confidence. There was a small bearish movement in the overall markets, but major tech, and semiconductors got completely slaughtered. We watched as $SMCI dropped over $100 intraday, $NVDA breaking below $700, yet watched as $SPY chopped around and did not display major bearish signals in the process. Hopefully, you all were able to capitalize on $GRYP as it moved up 25% yesterday. 

We started the day with $SPY looking weak, opening at $497.69, down from the previous close, and displayed bearish momentum right away. $SPY made the high of the day, trading at $498.41, and started to sell off, bringing a significant amount of bearish momentum in the process. We watched as $SPY continued to sell off, leading into the lunchtime lull, where we watched it make the official low of the day, trading at $494.45. 

There was a slight recovery in the afternoon. The conditions were choppy, but we did see some general bullish momentum that we could have capitalized on with relative ease. Markets recovered and moved normally until halfway through power hour, where $SPY quickly dropped and recovered everything leading to close. We ended the day with $SPY trading at $496.76, down $2.75 for the day, or down approximately 0.5%, with an intraday bearish movement of just under $1. 

It was a tough day to watch the markets, and even more difficult for the individuals who are stuck in major tech, but on an overall basis, we take yesterday as a relative wash in terms of movement. The significant thing I see as a result of the movement we’ve seen is the new placement in the markets. $SPY broke below the daily conversion line support, which is not a sign of confidence. Hopefully, you were able to capitalize on the opportunities available to us and ride the momentum in the process! 

Heatmap - $SPY 02/20/2024

Thoughts & Comments for Today, 02/21/2024

Today is going to be another generally confusing and difficult day to navigate. As I said before, we have FOMC minutes today at 2 pm EST, which will be the major catalyst for the markets to move today. Anything that happens prior will primarily be reactionary to people preparing and allocating accordingly for the minutes. I would not be overly ambitious or attempt to force allocations around that time. It will be difficult to trade once the minutes are released, but there is going to be opportunities across the board. 

Please be careful if you are attempting to trade today, and as always, practice safe risk management. These are not the conditions that you should be overly ambitious or aggressive while trading, mostly as we are under major support levels and are displaying weakness leading into economic news. Minutes might be a saving grace for the markets or maybe the final nail in the coffin. We’ve reacted well in the past to minutes, and we’ve also watched as the markets fell heavily as a result. Tread lightly, protect your bottom line, and do not get greedy. 

If you are in $GRYP with us, the position has already moved up heavily in the first official day of allocation, my PT remains the same at $4-5, but we have seen $3 during the pre-market session. I would advise caution while allocating into this organization, and I would not recommend attempting to allocate here at the relative top. This position can easily continue to move with a peer-comp value of $7. This is an amazing opportunity, but just remember to take profits when you are happy, set stop losses to limit your downside risk and allocate with confidence. There is a lot of potential in this organization, but it is a matter of how far this will run and how quickly it will do so.

For my allocations today, I will be looking for opportunities to capitalize on the weakness in the markets. I will be looking for opportunities to scalp and trade on an intraday basis and will be looking to allocate with $RIVN. $RIVN has earnings after hours today, so I will be looking for opportunities to capitalize on earnings. The expected move is approximately $2, so depending on the premium that is available, I am looking to sell CSPs right outside the expected range and have plans on how to navigate the position regardless of the direction. In the case $RIVN drops, I will plan on getting assigned on my CSPs, purchase leaps, and allocate deeper into equity, and in the case that $RIVN moves up nicely, I will cover the CSP and continue to hold my leaps, with the anticipation of exiting them closer to $20/share. If I decide to get into any other plays and see opportunities, though, I’ll announce what I see 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, $GRYP, $RIVN, $BABA, $SMCI, $NVDA, $AMD, $TSLA, $MSFT

LONG OPPORTUNITIES:

  • Long-Term Dividend - $GAIN / $JEPI

  • Long-Term Investment - $KO / $BA

  • Speculative Re-Entry - $DIS / $RIVN

Economic News for 02/21/2024

  • MBA 30-Year Mortgage Rate - 7:00 AM (ET)

  • Redbook YoY - 8:55 AM (ET)

  • Fed’s Barkin Speaks - 9:10 AM (ET)

  • Fed’s Bowman Speaks - 1:00 PM (ET)

  • 20-Year Bond Auction - 1:00 PM (ET)

  • FOMC Meeting Minutes - 2:00 PM (ET)

Notable Earnings for 02/21/2024

Pre-Market Earnings:

  • Vertiv Holdings Co (VRT)

  • HF Sinclair (DINO)

  • Analog Devices (ADI)

  • Phototronics Global-e Online Ltd. (GLBE)

  • Wix Ltd. (WIX)

  • Wingstop (WING)

  • Exelon Corp (EXC)

  • HSBC Holdings (HSBC)

  • Alight Inc (ALIT)

After-Market Earnings:

  • NVIDIA (NVDA)

  • Rivian Automotive (RIVN)

  • Etsy (ETSY)

  • Synopsys (SNPS)

  • Lucid Group (LCID)

  • Trip.com Group (TCOM)

  • Dutch Bros (BROS)

  • Mosaic (MOS)

  • Marathon Oil (MRO)

  • Suncor Energy (SU)

Wrap up

This will be a fun day, with FOMC minutes coming out at 2 pm EST. Please be careful and cautious, tread lightly, and practice risk management. Many traders are going to be able to realize a significant amount of gains with ease today, and many more will realize significant losses. Be smart, don’t get greedy. Let your winners ride, and cut your losers quickly. The markets are not a game of poker, you cannot bluff your way into winning a position. Make good positions, take on smart risk, and profit in the process. Let’s have some fun today. 

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

Allen Tran
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Highlighted Trades: 02/21/2024
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Highlighted Trades: 02/20/2024