HaiKhuu Daily Report - 04/02/2025
Good morning, and happy Wednesday!! Wow, this week has FLOWN by, and traders left and right are feeling extremely confused. These market conditions have been extremely difficult to navigate but have continued to provide us with some amazing opportunities to trade and realize a significant amount of gains regardless of the direction you allocated; it all really has come down to timing your allocation properly and capitalizing on these conditions.
We are seeing some wild volatility in the markets, which has been a lot of fun, but it has made trading difficult and inconsistent. Markets can look bearish, with all signs shouting bear before the markets rally and rip to new relative highs. Watch as markets go from looking strong at a relative high to selling off stupidly hard.
Just remember to watch that daily conversion line, as any close below that level is a bearish sign for the markets, while breaking back above the conversion line is a weak bullish sign.
Volatility has impacted the markets and traders' ability to navigate over the previous couple of trading days, so do what you can to make the most out of these market conditions, and just do what you can to maximize your profit potential. There is no reason why traders should not attempt to have some fun while trading. Just as always, please make sure to practice safe risk management!
Good luck trading today, and let’s see if we break that daily conversion line!
The updated $SPY daily levels are as follows:
Conversion Line Resistance: $561.64
Baseline Resistance: $573.23
Psychological Support/Resistance: $560
Daily Cloud Resistance: $594.29
Thoughts & Comments from Yesterday 04/01/2025
Yesterday was a volatile and disturbing day for the markets. We watched like the markets were a bouncy ball yesterday. Down, UP, down…. up. There was some wild whiplash, and that whiplash was a lot of fun, and provided traders with opportunities to allocate into the markets, and hopefully capitalize on the confusion.
We started the day with $SPY looking weak, opening the day officially trading at $557.48. Overall market conditions were alright, but watched as there was almost instant weakness from open, watching as $SPY drop almost instantly and went on to make the official low of the day at $553.70 within the first half hour of the day. Market conditions were weak, traders were scared, and people thought $SPY was about to head back to 550.
Thankfully, market conditions did recover. Throughout the rest of the morning into the back half to he lunchtime lull, market conditions were extremely bullish, and $SPY rallied almost $10 from the bottom, and we watched as $SPY went on to make the official high of the day trading at $562.94. Conditions were great at the top, but we unfortunately watched as $SPY sold off throughout the first half of the afternoon to make a relative low right above $556 before moving back up into close.
We officially ended the day with $SPY trading at $560.97, up $1.58 for the day, or up roughly 0.3%. Overall, it does not seem like $SPY really moved at all in anyway shape or form, but the fact that we had a $10 move from top to bottom on $SPY is absolutely disgusting and provided us with some wild opportunities to trade, realize gains, or capitalize on these market conditions. Hopefully, you all were able to capitalize on yesterday, and are ready to trade today!!!
S&P 500 Heat Map - 04/01/2025
Thoughts & Comments for Today - 04/02/2025
Today, if I am being honest, is setting up to be a volatile day for the markets, and I hope you all are prepared. With the movement we’ve seen over the previous couple of days, $SPY does want to attempt to reclaim that daily conversion line. Will it happen or not? That is a good question, but please be careful going into today, as I expect a significant amount of volatility and possibly a large directional move. As much as I want to be bullish, conditions are showing short-term weakness at the time of writing this report. Still, things can quickly change by the time markets open and can change multiple times again on an intraday basis. So, just worry the most about market conditions being extremely volatile and simply do what you can to “survive.”
As I said before, the biggest thing that you have to focus on in these market conditions, in my opinion, is not to attempt to realize as many gains as humanly possible but to do what you can to survive simply. Yes, there will be short-term opportunities to capitalize on these market conditions, but they are not strong. If you do not feel comfortable or confident in allocating to the markets, do not force any positions. Be patient and wait for an opportunity to allocate long with general confidence. This is easier said than done, but at the same time, your comfort in the markets matters more than any strong play. If a strong play takes a little bit of time and confidence, yet you have no confidence and sell down 5%, who cares that it ran 200% after you sold because you had no confidence in either the play or the organization?
So, my recommendation for all of you is to please continue to purchase strong equities in these market conditions. Right now, today at this exact moment, it may not seem like the optimal time to do so, but in my opinion, that is the exact time to enter into long positions. Markets are displaying general weakness at the moment, and these conditions are rather unfortunate, but you all know that with enough time, these markets will inevitably reverse, and organizations will go back to all-time highs. The question is, where are you allocating, where are you the most comfortable, and where does it make the most sense to you to allocate? But as long as you are slowly scaling into fundamentally solid organizations that provide us with opportunities to allocate with confidence, let us know what positions you are picking so we can all throw it on our radar too.
Just as a warning again, please do NOT purchase option contracts as a “means to allocate long.” Hypothetically, yes, you are correct because, on principle, you are purchasing bullish exposure in an organization, and you want to use it as a method of getting the position to play out with less capital tied up. Again, you are not incorrect about that by the books. But, if you look at things in practice, you decide to take a 2-month out, 10% OTM option contract on $SPY. You believe the markets are going to move up, and they do. Over the next 2 months, $SPY rips up 8%, and as a result, it officially closes here in two months at $600. You could not capitalize on that movement realistically as theta quickly stole any profits, and your contracts expired worthless and OTM.
It's not an ideal situation at all; the person who grabbed shares is up 8% with zero timeframes, while another person is down 100% as their option contract has expired worthless.
Again, that is just the reality of the markets, mostly with attempting to allocate long here. I am not saying options are necessarily bad nor incorrect, as there are many reasons why you should look to buy/sell options, but this is one of those scenarios where, realistically, 99% of people are going to interpret incorrectly, and this was something I had to clarify. If you are purchasing leaps in these market conditions or selling CSPs, continue to do your thing because you are significantly more experienced in trading options than the 99.9% who are attempting to allocate into the markets via options.
Just please, continue to practice safe risk management and protect your bottom line. As I said before, the word to keep stuck in your mind is “survive.” As long as you are able to continue to trek through the BS of these market conditions, you will be fine, and inevitably, one of these days, markets will recover, and we will all be perfectly fine. The only issue is if you lose 100% of your portfolio now, you cannot capitalize on the conditions then. So just think about it.
If I see any opportunities, or if I decide to get into any other plays, I’ll announce what I see 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, BTC, $RIVN, $INTC, $NVDA, $TSLA, $MSFT
LONG OPPORTUNITIES:
Long-Term Dividend - $GAIN / $JEPI
Long-Term Investment - $INTC
Economic News for 04/02/2025 (ET):
ADP Employment - 8:15 AM
Factory Orders - 10:00 AM
Notable Earnings for 04/02/2025:
Pre-Market Earnings:
BlackBerry Limited (BB)
AngioDynamics (ANGO)
UniFirst Corp (UNF)
Cognyte (CGNT)
After-Market Earnings:
RH (RH)
Penguin Solutions (PENG)
Basset Furniture (BSET)
Franklin Covey (FC)
Resources Connection (RGP)
Wrap up
This should be a fun time for the markets. Please, again tread lightly and practice safe risk management. These market conditions are going to be volatile and difficult to navigate, but that is just p[art of the beauty of the markets. Be smart, be safe, realize some gains, and have some fun today. I believe that there is going to be a lot of potential on the table, so realize some gains and have an amazing time!
Good luck trading, and let’s see what Hump Day has for us!!!