HaiKhuu Daily Trading Report

Good morning, and happy Friday! This week has absolutely flown by, and I hope that you are excited about today! Markets are looking tough as we have broken below both levels of major support on the daily and see that there is a bearish TK cross undercoming in the near future. This is the time that I advise extreme caution, but look to take advantage of the opportunities that are presented as a result. Look for opportunities to capitalize on this weakness in the markets, and just tread extremely lightly. We are back in neutral on the fear and greed index despite being less than 2% away from the all-time high. This can be the beginning of the end or the beginning of the next song in this beautiful symphony we call the markets.

Just make sure to practice safe risk management and limit your downside risk. Opportunities will be presented to us, but many casualties will happen in the process. I’ll talk more about how I anticipate navigating these conditions later in the report, but this is going to be an interesting trading day.

Good luck trading, and let’s end this week strong!

The updated $SPY daily levels are as follows:
Conversion Line Resistance: $518.68
Baseline Resistance: $514.76
Psychological Support: $500
Daily Cloud Support: $499.17

Thoughts & Comments from Yesterday, 04/04/2024

Yesterday was an extremely tough yet beautiful day for the markets. Anyone who got into $ULTA with us had a phenomenal time, but markets did not have a great time in the process. We saw the largest intraday bearish movement in 2024, and there were many casualties in the process. I hope you all were able to come out of yesterday unscathed, but it was an extremely difficult time for most traders.

We started the day during the pre-market session as $SPY was up nicely and watched as economic news pushed the markets into open. We started the day with $SPY trading at $523.50, looking extremely strong, trading within roughly a $1 range from the all-time high on $SPY. The morning was great as market conditions were extremely strong, but we watched as market conditions remained relatively neutral right at open and watched as $SPY continued to slip going into the lunchtime session. Conditions were not the best, but we did see as $SPY rallied back and made the official high of the day, trading at $523.86.

Conditions were looking great, mostly at the top, but conditions were rather unfortunate afterward. In the back half of the afternoon, market conditions got significantly worse extremely quickly. We watched as $SPY went from trading relatively neutral from open, trading at $523, before watching as market conditions were slowing down and getting worse, before absolutely slipping in the process.

Kashkari stated that it was possible that the Fed wouldn’t look to cut rates this year if inflation stalls, and that was the final nail in the coffin.

$SPY dropped, dropped, and dropped some more. We went from testing the all-time high on $SPY to breaking both levels of major support on the daily, making a low of the day at $512.76 and ending the day trading at $513.07. Down $6.34 for the day, or down approximately 1.2%. We had an intraday bearish movement of $12.47, and there were MANY casualties in the process.

That was one of the largest intraday bearish movements we’ve seen in a LONG time, and many traders had a genuinely terrible time in the process. Many losses were generated, many opportunities were missed out on, and it was genuinely a terrible time. I hope you all came out of yesterday unscathed, but that was a tough movement.

Thoughts & Comments for Today, 04/05/2024

Today is going to be extremely interesting as many traders are going to have a lot of difficulties navigating these conditions with confidence. Many traders are going to be in a state of panic as a result of the bearish momentum we’ve seen in the markets, and the smart traders are going to see this as an opportunity. Yes, I do advise being overly cautious while attempting to trade today; it would be dumb if I said that risk management is not something that you should consider. But at the same time, with market conditions looking the way they are, I would advise you all to tread extremely lightly and look for opportunities to realize gains when possible. Markets are still extremely strong but are displaying weakness at the moment. We can very easily continue to fall from here, so that is a risk that you should realistically consider, but understand the involvement that is necessary in these market conditions. If you take on risks at the right time, it pays off. If this is a dip buying opportunity and we bounce, people are going to look back at this and say we missed out on a phenomenal opportunity, so seize the opportunities that are available, but protect your bottom line.

A couple of positions I am extremely interested in allocating into today are selling 0-DTE CSPs on volatile organizations. With the markets being down and volatility being high, I believe that this is a great time to attempt to sell some cash-secured puts against organizations you are confident in. I personally would not advise attempting to sell long-dated puts, as the markets can continue to come down with relative ease over the upcoming weeks, but the plan is to capitalize on this short-term momentum and realize gains as a result. This is not going to be a sexy play, and can be extremely risky in the case market conditions continue to come down. I plan on entering into these contracts at open and adjusting them, ideally taking profit within the first half hour of the day for roughly 50-60% of the premium available. The best way to do this is to look for organizations that are down heavily over the previous couple of trading days that have high volatility, that you are bullish on and see the potential for it to bounce, and then allocate accordingly. Assuming that there is a quick correction in the markets, you will be able to collect premiums with ease and remain consistent in the process. There are risks involved with this, mostly if you do not understand what is going on. I only advise this for the traders who understand how selling options work and can do it with both comfort and confidence.

For my allocations today, I do plan on keeping things extremely simple. I plan on capitalizing on the general market momentum, but I am very interested in selling 0-DTE CSPs at open and anticipate taking profits on those positions extremely quickly. This is not going to be a sexy way to realize gains in these market conditions, but it is something that realistically will remain extremely consistent despite market conditions being difficult. A c couple of organizations I am interested in selling CSPs on today, as a result of the downside yesterday, are $AMD and $GOOGL. With $AMD down roughly 8%, I believe that there should be some great premium on these contracts, but I am worried about the possible continuation of downside at open, so I will start slowly on the allocation and tread extremely lightly. I do not want to get greedy with these contracts, and I anticipate taking profit extremely quickly when possible. Today, in my opinion, is a day full of potential, but this is not one of those days where you should be overly aggressive, mostly if market conditions are not favorable for it. So tread lightly, and be smart with your positions. But take advantage of these conditions and play smart.

If I decide to get into any other plays and see opportunities, 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, $AMD, $NVDA, $LULU, $TSLA, $ULTA, $AAPL, $MSFT

LONG OPPORTUNITIES:

Long-Term Dividend - $GAIN / $JEPI
Long-Term Investment - $BA
Confirmed Re-entry - $RIVN

Economic News for 04/05/2024

Unemployment Rate & Payroll Data - 8:30 AM
Fed's Barkin Speaks - 9:15 AM
Fed's Logan Speaks - 11:00 AM
Fed's Bowman Speaks - 12:15 PM
Consumer Credit - 3:00 PM

Notable Earnings for 04/05/2024

Pre-Market Earnings:

Byrna Technologies (BYRN)

Wrap up

This is going to be an absolutely WILD day for the markets, mostly with conditions not remaining optimal. Please continue to tread lightly on these market conditions, but have fun, as these market conditions are going to be amazing and full of opportunity. Protect your bottom line, practice safe risk management, and prepare for what is going to be a confusing and fun time for the markets. Let’s end this week strong, and realize some gains in the process

Good luck trading, and let’s see where the markets go today!

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HaiKhuu Daily Report 04/05/2024