HaiKhuu Daily Report 02/22/2024
Good morning, and happy Thursday! Markets are looking extremely strong after $NVDA earnings, and it was a beautiful saving grace that we have been waiting for. At the time of writing this report, $NVDA is trading at $763, up 13% from close, and making a new all-time high. $SPY has reclaimed $500 as a result of $NVDA moving up, and this is shaping up to be a beautiful day for the markets. There is a very high likelihood that we will see $SPY make an all-time high today.
$SPY has created a gap on the daily as a result of that beautiful bullish movement, and opportunity has been presenting itself across the board. $RIVN crashed on earnings, which is unfortunate, but it has now gotten to the lower end of the load-up zone, so this is going to be an amazing time to buy. I’ll discuss this later on in the report, and I’ll go in-depth with my plan.
But for now, make some smart decisions, realize some gains, and let’s have some fun trading today!
Good luck trading, and make the most out of these market conditions!
The updated $SPY daily levels are as follows:
Conversion Line Support: $497.11
Baseline Support: $486.69
Psychological Support: $500
Daily Cloud Support: $469.98
$SPY Daily Candles - [02/21/2024]
Thoughts & Comments Yesterday, 02/21/2024
Yesterday was a tough day for the markets, with beautiful momentum and opportunity across the board. Conditions were strong yet slow in the morning but watched as $SPY continually dropped after the FOMC minutes were released, and watched as the final hour of the day led to a significant amount of bullish momentum, resulting in the markets breaking above the daily conversion line resistance, and displaying strength in the overall markets. It was a great time trading with many opportunities.
We started the day with $SPY trading at $495.50, down from the previous close but was relatively neutral for the majority of the day. There were relatively tight and choppy conditions for the majority of the day, having a minor dip during the lunchtime lull, but it was, again, nothing of any major significance. Everyone was waiting for the FOMC minutes to come out, and that is where the fun started to happen. We initially moved up slowly after the minutes were released and then watched as the markets sold off consistently, leading into power hour, where $SPY made the official low of the day, trading at $493.56.
Once the markets made that low, it was an unfortunate time, but the last half hour of the trading day was extremely bullish. We had to get back above $497 to close above the conversion line resistance on the daily and were able to watch as $SPY moved up just under 1% in the process, as we rallied into close, making the official high of the day trading at $497.37, and ending the day trading at $497.21, up $0.45 for the day, or up approximately 0.1%. It was a beautiful day for the markets despite having relatively minimal overall movement. We were provided with some amazing opportunities to trade and realize gains in the process.
After-hours was a lot of fun with many major earnings; $NVDA was down approximately $20 or roughly 3% prior to earnings and is up roughly $100 now, while $RIVN dropped 15% after-hours and is in the load-up territory. Funny enough, $LCID, an even worse EV company, only dropped 8%. Regardless though, C’est la vie, let’s see what the markets have in store for us today, and have some fun in the process!
Heatmap - $SPY 02/21/2024
Thoughts & Comments for Today, 02/22/2024
Today should be another fun time for the markets. As I said before, there is a great chance that $SPY will hit an all-time high today and that there are going to be many opportunities across the board to realize a significant amount of gains. It would surprise me to see market conditions weaken, and this is going to be an amazing day for anyone who is participating in the markets.
Regardless of conditions, look to follow the general market momentum and practice risk management today. People that will follow the momentum and look for opportunities to capitalize on, will be rewarded heavily today. Obviously, protect your bottom line, but take advantage of these strong market conditions. Do not be reckless, but look to take on some risk to increase your profitability in these market conditions.
The one play I will be primarily watching today will be $RIVN. I know I’ve talked a lot about it in the past, but I will bring it up again. As $RIVN has fallen heavily during their earnings, I am concerned about their current operations, but I am still hyper-bullish about them in the grand scheme of things. Their production numbers missed heavily, and they announced that they are cutting 10% of their workforce as demand for their vehicles has dropped over the previous couple of months. This is a major concern for their current operations, but you have to remember my personal sentiment when it comes to $RIVN and their future outlook. To me, Rivian’s claim to fame is going to be their Electric Delivery Vehicles (EDV). They are producing trucks and SUVs right now to invest in their own research and development at the moment to provide cash flow for the organization, but I believe that in the grand scheme of things, the revenue that is generated from these vehicles is going to be dwarfed by EDV production. At the moment, the only major organization that is utilizing these EDVs on a small scale is Amazon for last-mile deliveries. This is just them actively testing the waters with new efficient vehicles. I believe in the near future, between 5-10 years, when organizations are starting to replace their sprinter vans, instead of purchasing another sprinter, they will be looking to utilize Rivian’s EDV for last-mile delivery. Amazon is the leading organization when it comes to last-mile delivery, and we can see a shift in demand for these vehicles as a follow-the-leader move, the same way that we see modern technology being relatively simplified as a result of $AAPL removing things like a disk reader & ports from their laptops. Rivian has a significant amount of short-term opportunities to capitalize on bounces and opportunities to scalp, but at the same time, assuming operations remain optimal, provide us with a great long-term outlook for the organization. There will be some short-term hurdles to get over, but assuming they are able to overcome all of those hurdles, I believe that $RIVN around the $13 range is a phenomenal hold with lots of potential. Obviously, please do your research and practice risk management with this allocation, but understand that there is a lot of opportunity that will be presented to us as a result of this selloff.
For my allocations today, I will be primarily focused on allocating towards $RIVN. There is a significant amount of risk in attempting to allocate into $RIVN right after earnings as we may see a continuation of a sell-off, but taking on risk while others are fearful will provide us with either increased losses or the potential to realize a significant amount of gains. I will be looking to sell CSPs, purchase calls, and purchase leaps. I will not be grabbing equity in $RIVN in the short term and will be utilizing CSPs as an opportunity to get assigned equity, assuming $RIVN continues to drop and have both calls and leaps as long exposure in the organization. I will be looking to sell puts around the $10-12 range. Both strike price and expiration will come down to how much premium is available in these market conditions. The calls I will be looking for will be at the money, April monthly contracts, as well as I will be looking towards The Jan 16, 2026 calls for the long exposure. Again, this strategy is extremely risky, mostly in these market conditions, but I have a significant amount of confidence in the opportunity that is presented to us in these market conditions, and I am extremely excited to see what happens. If you decide to enter into $RIVN, please make sure to do your own research and please practice risk management. There is a lot of risk involved with allocating here after a large sell-off as the selling can continue with ease, but $RIVN is at a point where I personally am comfortable and confident in allocating into the organization with a long horizon.
I’ll let you all know in real-time when I start enter 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, $BABA, $GRYP, $TSLA, $NVDA, $AMD, $SMCI
LONG OPPORTUNITIES:
Long-Term Dividend - $GAIN / $JEPI
Long-Term Investment - $KO / $BA
Speculative Re-Entry - $DIS / $RIVN
Economic News for 02/22/2024
Chicago Fed National Activity - 8:30 AM (ET)
Jobless Claims - 8:30 AM (ET)
S&P Global US Manufacturing PMI - 9:45 AM (ET)
S&P Global Composite PMI - 9:45 AM (ET)
S&P Global Services PMI - 9:45 AM (ET)
Existing Home Sales - 10:00 AM (ET)
Fed’s Harker Speaks - 3:15 PM (ET)
Fed’s Kashkari Speaks - 5:00 PM (ET)
Notable Earnings for 02/22/2024
Pre-Market Earnings:
Moderna (MRNA)
Newmont Mining (NEM)
Nikola Corporation (NKLA)
Cheniere Energy (LNG)
PG&E (PCG)
Wayfair (W)
Pioneer Natural Resources (PXD)
Quanta Services (PWR)
Dominion Energy (D)
Builders FirstSource (BLDR)
After-Market Earnings:
Block (SQ)
EOG Resources (EOG)
Carvana (CVNA)
MercadoLibre (MELI)
Booking Holdings (BKNG)
indie Semiconductor (INDI)
Intuit (INTU)
Contura Energy (CTRA)
Live Nation Entertainment (LYV)
Rocket Companies (RKT)
Wrap up
This will be a fun day for the markets; let’s look for opportunities to capitalize on these market conditions and prepare for what should be a great time. There is a high likelihood that $SPY will hit a new all-time high, so ride the momentum, look for opportunities to trade, and have some fun. Let’s realize a significant amount of gains together and prepare accordingly for what should be a profitable day. Look to increase your risk and exposure on an intraday basis and maximize the opportunities that are presented to you.
Good luck trading, and let’s see a $SPY all-time high!