HaiKhuu Daily Report 04/11/2024
Good morning, and happy Thursday! Market conditions have been extremely tough, but opportunities are amongst us. I hope you all are doing well and are excited about these market conditions. $SPY is starting to show serious weakness for the first time in months, and this is the first time that I personally am considering switching sides and realistically becoming slightly bearish in the markets. $SPY has broken below major daily support and is displaying general weakness across the board. We are neutral on the fear and greed index, and realistically, if the markets are not able to sustain themselves at these levels, we will come down and continue to sell off. I am not overly bearish, as a couple of tough days do not justify being overly bearish, but we are down enough here in the short term where it should be a consideration. This dip can be very easily bought up, as market conditions overall are still strong, but the confidence is slipping, and we should prepare accordingly as a result. Please make sure to practice safe risk management, not only today but in general. Protect your bottom line, and remain level-headed in the process.
Good luck trading, and let’s see what $SPY does here at daily support.
The updated $SPY daily levels are as follows:
Conversion Line Resistance: $518.24
Baseline Resistance: $516.37
Psychological Support: $500
Daily Cloud Support: $503.57
$SPY Daily Candles - [04/10/2024]
Thoughts & Comments from Yesterday, 04/10/2024
Yesterday was an extremely disgusting day for the overall markets, with significant weakness during the pre-market session, filled with opportunity and realized losses. Many traders unfortunately realized a significant amount of losses yesterday (myself included), and it was a genuinely tough time for the markets. The majority of the movement happened during the pre-market session on economic data, but regardless, it provided us with an extremely difficult trading condition. I hope you all did alright, but I know that, realistically, yesterday was a tough day for the majority of traders.
We started the day during the pre-market session at 8:30 am EST; market conditions were looking extremely strong as $SPY was trading above $520 and providing traders with comfort and confidence leading into the CPI report. The report came back hot, and the markets reacted accordingly. Within ten minutes, $SPY dropped $10 and killed any bullish sentiment leading into the day. We started the day with $SPY opening at $513.51, down $6 from the previous close. We did see some nice bullish momentum as the markets continued to recover for the first hour of the day, as $SPY made the official high of the day, trading at $516.16, before coming back down into the lunchtime lull. Market conditions were not ideal and remained relatively inconsistent for the rest of the day.
$SPY continued to chop around the $514 mark. Leading into the FOMC minutes coming out, $SPY sold off to make the official low of the day, trading at $512.09. As minutes came out, we saw some slight bullish momentum but not anything of any major significance as the markets continued to trend and chop at the $514 level. Conditions were not ideal, and it made it extremely difficult to remain consistent when attempting to trade.
Market conditions were tough going into close, where we ended the day with $SPY trading at $514.12, down $5.20 for the day, or down 1%, but we did have an intraday bullish movement of $0.61. There were great opportunities to attempt to trade around open, but despite this, it was extremely difficult to remain consistent throughout the day, mostly if you were attempting to capitalize on the market momentum. Again, I hope you all were able to come out of yesterday relatively unscathed, but what has happened has happened, and this is the time to remain defensive and realize some gains to make up for any losses that have been generated. Life moves on, and the markets move on. Let’s see where the markets take us today, and have a great time in the process.
Heatmap - $SPY 04/10/2024
Thoughts & Comments for Today, 04/11/2024
Today is going to be a tough day for the overall markets. I don’t want to lie and be overly optimistic at this time because, in all honesty, I am not optimistic about today in any way, shape, or form. Market conditions are tough and $SPY is down at the time of writing this report. There is a good chance that the markets can recover, but with the movement we’ve seen over the previous couple of trading days, I would say there is a better chance for the markets to come down. One thing you should consider in these market conditions is to hedge your positions and take on some bearish exposure. This is the first time I have said this in months, and if market conditions do not strengthen within the next week, it will be something that I continue to say.
Please be careful and cautious in these conditions. There is no reason why you should attempt to take on a significant amount of risk right now. With the current conditions in the markets, practicing risk management is going to be the key to your success. I would suggest that you look to minimize general exposure in the markets at the moment and be more cased based. I personally am allocated incorrectly for these market conditions and I will be looking to adjust my positions accordingly when I am given an opportunity to do so. Look to hedge your positions, get more into safer allocations, and hold cash. Decreasing your downside risk increases your chances of remaining consistent in these sketchy market conditions.
Again, I do not believe this is certain death in the markets, but more so the signs of early weakness. The markets can quickly rebound, but we are at a point where I personally am not feeling the most comfortable or confident. Opportunities will be presented to us consistently, and I believe there is a good chance that the markets rebound from here, but I want to plan accordingly in case that does not happen. I do not advise going 100% into hedging your portfolio or being overly bearish, but having some light bearish exposure to limit your downside risk is not a bad move, mostly with the markets displaying this short-term weakness at the moment.
For my allocations today, I plan on keeping things simpler. I do not anticipate actively scalping or trading if market conditions do not look optimal, and I am more interested in simply watching the general markets. I may look to hedge positions and start to build out a bearish allocation, but it is just a matter of how comfortable and confident I am with my current sentiment. I obviously will be watching market conditions, and in the case we do continue to display weakness, I will be looking to allocate accordingly, but until I am confident about the direction in the markets, I am not overly bearish, nor will I be attempting to fight the markets.
If I see any opportunities, or 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, $LULU, $ULTA, $RIVN, $TSLA, $BA, $NVDA
LONG OPPORTUNITIES:
Long-Term Dividend - $GAIN / $JEPI
Long-Term Investment - $BA
Confirmed Re-entry - $RIVN, $ULTA, $LULU
Economic News for 04/11/2024
Producer Price Index - 8:30 AM
Jobless Claims - 8:30 AM
Fed Williams Speaks - 8:45 AM
Fed's Barkin Speaks - 10:00 AM
4&8 Week Bill Auction - 11:30 AM
Fed's Collins Speaks - 12:00 PM
Notable Earnings for 04/11/2024
Pre-Market Earnings:
Constellation Brands (STZ)
CarMax (KMX)
Fastenal (FAST)
Lovesac Company (LOVE)
Conn’s (CONN)
Hooker Furniture Corp (HOFT)
After-Market Earnings:
No After-Market Earnings Scheduled
Wrap up
Hopefully, the markets recover, but current conditions are looking rough. Please protect your bottom line and prepare accordingly for some possible downside in these market conditions. I am not overly optimistic, but I do want to remind you all that these market conditions are strong and that we can very easily bounce from here. at the same time, this is the first time in a while that there has been a confirmation of a downside. It is a weak confirmation, but a confirmation nonetheless. Please take that with a grain of salt and prepare accordingly. Look to realize some gains and limit that downside risk wherever possible.
Good luck trading, and let’s see how many grey hairs the markets give us today!