HaiKhuu Daily Report 03/25/2024
Good morning, and happy Monday! I hope you all had an amazing weekend and are ready for what should be another fun week for the markets! Markets are relatively neutral right now, being down slightly, but at the same time, there is still strength in the markets that we can capitalize on. Look to take advantage of the current conditions, but just make sure to protect your bottom line, as markets are going to be volatile.
Just as a heads up for this week, Thursday is going to be significant for the markets as we have a lot of economic news, including PMI, GDP, and the U-Mich Inflation numbers coming out. This is also a shortened week as the markets are CLOSED for Good Friday.
So prepare accordingly, as we have a significant amount of economic news as well, and this is a shortened week.
To check out all of the news coming out this week, check out our Weekly Preview.
Good luck trading, 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: $516.12
Baseline Support: $508.84
Psychological Support: $500
Daily Cloud Support: $491.78
$SPY Daily Candles - [03/22/2024]
Thoughts & Comments from Last Week,
Last week was a lot of fun for the markets. We had the Reddit IPO, $SPY made a new all-time high, and we watched as many organizations rallied while many traders realized significant gains. Markets were extremely strong, and we all had a phenomenal time in the process. I hope you all were able to capitalize on the opportunities presented to us, because it genuinely was a lot of fun trading last week.
We started the week with $SPY trading at $514.10 and watched as $SPY struggled a little bit early in the week as we dropped to hit $511 on Tuesday, but thankfully recovered by market close and continually rallied. The major catalyst for a movement everyone was watching for was FOMC, as $SPY did go on to make a new all-time high on Wednesday, as rates remained the same, and watched as Jerome Powell caused the markets to continually rally.
Thursday was filled with opportunities, but it was a little bit more difficult to trade. $SPY made an official all-time high on Thursday, trading at $524.11, and we watched as the Reddit IPO happened, and many traders were able to realize gains with ease. It was an extremely fun play that was called out absolutely perfectly in the report and in real-time by our team.
Friday itself was a rather uneventful day with not many opportunities to trade in the process. We ended the week with $SPY trading at $521.21, meaning that $SPY moved up $7.11 throughout the entire week, or was up roughly 1.4%, and was able to generate a significant amount of gains for many traders in the process. It was a great week full of opportunities and a lot of fun, but difficult to navigate and remain consistent. I hope you all were able to capitalize on the market conditions and had some fun in the process, and I hope that this week continues to display strength int he markets.
Heatmap - $SPY 03/22/2024
Thoughts & Comments for Today, 03/25/2024
Today should be another interesting time for the markets. We are still neutral at the time of writing this report, but conditions are not looking optimistic. We are not down enough to be overly bearish, but conditions leading into the day are not looking strong. General market conditions are extremely strong as we are close to making an all-time high, but that does not mean you should not tread lightly and put your guard down. These conditions will remain extremely profitable for some, but there is high risk when attempting to allocate in these market conditions. As long as markets remain consistent, then everyone should be able to realize gains with ease, but in the case market conditions weaken, I am expecting to see bearish momentum to test the daily support levels. I would advise caution in these market conditions, but don’t be overly bullish or bearish, and simply follow the momentum.
If you are looking to allocate long, I would advise you to take the path less traveled on and look for undervalued organizations that are fundamentally solid organizations but are oversold for some reason. Recently, we allocated into $RIVN after watching them drop on earnings, $BA after the door flew off, and $TSLA once they were negatively impacted heavily as a result of decreased demand. One organization that has been oversold as a result of earnings that I will have my eyes on is $LULU. They have dropped heavily as a result of weak forward guidance during their earnings and have dropped heavily as a result. I am not looking to be overly aggressive with this allocation, but I am looking to take advantage of this selling by looking to capitalize on a quick dead cat bounce. I would not advise allocating long as, again, their forward guidance is not strong, but we can quickly capitalize on the overreaction today by getting some quick scalps and day trades in.
One other position you should watch today is $RDDT. They have not performed optimally since the IPO, despite trading higher than their book value, but options have just opened up on the organization. I am expecting to see a significant amount of volatility and incorrect pricing of these option contracts. If premium is significant, I will be looking to sell premium against the underlying equity, but just know that I am bearish on the organization here in the short term as I do believe they are heavily overvalued right now, but I still do believe that it is a great organization if you are able to purchase them around the $3B market cap mark, which is the high $20’s or the low $30’s.
Just continue to be smart and safe in these market conditions and practice safe risk management.
As I am back in Chicago, I do anticipate looking to actively trade again, and scalp when given an opportunity to do so. My main focus for today is to look at the active pricing of the $RDDT options and allocate into puts. The real question is, will I look to buy or sell them? In the case that puts are extremely cheap, I will be actively purchasing them, but in the case that the puts are priced incorrectly and are overpriced, I will be looking to short those contracts and sell CSPs against the organization. The other position I will be watching is $LULU. I will be grabbing shares of the organization and will be looking to capitalize on the general market momentum and try to catch a dead cat bounce. Neither of these plays will generate any sort of life-changing money, but they will at least provide me with opportunities to generate income with relative ease and little risk in the process. When I decide to get into any of these plays, I will let you all know in real-time, and if I see any other plays and see opportunities, I’ll announce what I see in the HaiKhuu Discord.
HaiKhuu Proprietary Algorithm Report:
Last week was the first time we implemented our newest intraday algorithm. The quantity of trades taken has decreased as it targets higher-quality trades. Unfortunately, we were not able to generate a profit last week, but that is not concerning as the number of trades has decreased significantly, meaning we are extrapolating data from a very small data set. We will be working on improving this system, and it should be easy to watch as it improves over the upcoming weeks.
Stats of last week:
Total Positions Taken: 33
19 Long
14 Short
Best Position:
Long $PANW - Net +0.9% Intraday
Worst Position
Short $HPE - Net -0.15% (Assuming no re-entry)
To read the full report, check out our algorithm analysis.
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, $RDDT, $LULU, $BA, $TSLA, $RIVN, $GRYP, $GOOG/L, $NVDA, $AMD
LONG OPPORTUNITIES:
Long-Term Dividend - $GAIN / $JEPI
Long-Term Investment - $BA
Confirmed Re-entry - $RIVN
Economic News for 03/25/2024
Building Permits - 8:00 AM
Chicago Fed National Activity - 8:30 AM
New Home Sales - 10:00 AM
Dallas Fed Mfg Business Index - 10:30 AM
3 & 6-Month Bill Auction - 11:30 AM
2-Year Note Auction - 1:00 PM
Notable Earnings for 03/25/2024
Pre-Market Earnings:
Bitcoin Depot (BMT)
SYRATECH (SYRA)
After-Market Earnings:
Rekor Systems (REKR)
BuzzFeed (BZFD)
Wrap up
This should be an interesting time for the markets. Plan accordingly and practice risk management, but look to follow the general market momentum and capitalize on opportunities when they are presented to us. Do not forget we have major economic news and that this is a shortened week. Prepare accordingly, as this will be a short and volatile week for the markets. Watch out for an opportunity to capitalize on $LULU, and watch out for the Reddit options that are now available!
Good luck trading, and let’s have some fun this week!