HaiKhuu Daily Report 04/18/2024

Good morning, and happy Thursday! Markets are looking gross, and I am BACK.  I don’t know what you all did to the markets over the past couple of days, but things are not how I left them. $SPY has tested and broken below $500 for the first time in months, and this is looking sketchier and sketchier as time passes. We have an official bearish TK cross under on the $SPY daily, and market conditions are looking rough. Please continue to protect your bottom line and tread extremely lightly in these market conditions. Markets can move up easily after stopping some traders out, but we can very easily dive here. Tread lightly, but look to take advantage of these market conditions. 

Good luck trading, and let’s see where the markets go at $SPY $500! 

The updated $SPY daily levels are as follows:
Conversion Line Resistance: $509.94
Baseline Resistance: $511.87
Psychological Support: $500
Daily Cloud Resistance: $507.90

$SPY Daily Candles - [04/17/2024]

Thoughts & Comments from Yesterday, 04/17/2024

Yesterday was a disgusting day for the markets with $SPY breaking below $500, displaying general weakness, and stopping many traders out of their positions. It was not the worst bearish day we’ve seen, but it was one of the most significant movements as a result of the market placement. Hopefully, you all were able to survive the commotion, but that was a difficult day to dodge. 

We started the day with $SPY trading at $506.09, and markets were up from the previous close. This was a great feeling, as we have only seen continued bearish momentum in the markets. We were displaying relative confidence, but $SPY was not having it. We made the official high of the day slightly above open, at $506.22, and watched as $SPY got shot down in the process. We watched as, for the first two hours of the trading day, markets displayed significant weakness, only continuing to sell off, where we went on to make the official low of the day, trading at $499.12, guaranteeing that traders got burnt in the process attempting to buy the dip, and watched as they all got stopped out under $500. Conditions were not ideal in any way, shape, or form, but that is just part of being in the market. 

Thankfully, we did see the markets start to move up after making the official low of the day as volume and momentum came back into the markets during the back half of the trading day. $SPY quickly recovered, bouncing back up to $502 and quickly snapping up to $504 for a brief moment before starting to come back down.  

$SPY chopped around during powerhour, where we officially ended the day with $SPY trading at $500.55, down $2.98 for the day, or down approximately 0.6%, with an intraday bearish movement of $5.54. As I said before, it was not the worst bearish movement we’ve seen in the markets, as we’ve seen multiple days where $SPY has come down roughly $10, but this was the most significant day we’ve seen in a while as $SPY broke below $500 for a brief moment, showing the reality and possibility of the markets breaking down. I hope you all did alright yesterday and are ready for what is about to happen today! 

Heatmap - $SPY 04/17/2024

Thoughts & Comments for Today, 04/18/2024

Today is going to be a tough day to navigate, but there is going to be a lot of potential. With the markets where they are, I am expecting one of many different scenarios. The obvious ones that people are going to be watching for are the chances that $SPY breaks below $500 or is able to bounce. Either of these two would be ideal, as that means that $SPY is having a decisive movement, and you can capitalize on either direction by remaining fluid with your position. It is obviously not ideal in the case that $SPY does sell off, but it is at least a decisive movement down where we can capitalize on the bearish momentum in the markets and are able to find value opportunities. The perfect case scenario, though, is watching as $SPY bounces here at $500 and then is able to rally back to a point of comfort and confidence over just a couple of days ($520+). This is obviously a long shot from the position that we are in, but all we realistically need is a couple of days of strong bullish momentum in the markets. Either of these scenarios will bring confidence to both traders and the general markets, but the worst thing that could happen here is the case the markets remain relatively neutral, have no momentum, or, worst, simply chop around this level and remain inconsistent for the majority of the day. 

I will continue to say this, though: this is a traders’s paradise. Yes, these conditions are sketchy, but there are opportunities that are consistently being presented to us. Look to take advantage of those said opportunities, but protect your bottom line. Be fluid with your allocations but do not attempt to take on too much risk without being comfortable and confident in your position. 

The biggest thing that you should do at this point is to continue to practice safe risk management. By allocating into the markets now, you are taking on a significant amount of risk, and as a result, you should be looking to minimize the overall risk as much as possible. I would not advise you to attempt to take on more risks in these conditions, and if anything, you should consider hedging your portfolio, as market conditions can get worse here in the near future. There is a chance for the markets to bounce, but I would rather be overly prepared and protect my portfolio despite not needing it. Than allocating deep into the markets and taking on a significant amount of risk before the markets ultimately drop. This is something that you should realistically be considering in these conditions, and I would just make sure you limit your downside risk. 

If you are trading, make sure to define your risk before entering into any position, and make sure that you are setting stop losses on every position to limit the amount of losses that can be generated from any single position. 

For my allocations today, I do want to capitalize on these market conditions, but I do not anticipate taking on a significant amount of risk that I am not comfortable with. I will be looking to play the direction of the markets and want to look more so to follow the market momentum than speculate on anything significant. I ideally want the markets to bounce and move up, but if we break below $500, I will be looking to short the markets via an active day trade and ride it until we see any sign of a reversal. 

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 04/18/2024

• Jobless Claims - 8:30 AM

• Philadelphia Fed Manufacturing - 8:30 AM

• Fed’s Bowman Speaks - 9:05 AM

• Fed’s Williams Speaks - 9:15 AM

• Existing Home Sales - 10:00 AM

• Leading Index Change - 10:00 AM

• Fed’s Bostic Speaks - 11:00 AM

• 4&8 Week Bill Auction - 11:30 AM

Notable Earnings for 04/18/2024

Pre-Market Earnings:

• Nokia Corp (NOK)

• D.R. Horton (DHI)

• KeyCorp (KEY)

• Alaska Air Group (ALK)

• Blackstone (BX)

• Infosys Technologies (INFY)

• Elevance Health (ELV)

• Ally Financial (ALLY)

• Marsh & McLennan (MMC)

• Genuine Parts Company (GPC)

After-Market Earnings:

• Netflix (NFLX)

• Intutive Surgical (ISRG)

• PPG Industries (PPG)

• Metropolitan Bank Holdings (MCB)

• Glacier Bancorp (GBCI)

• Independent Bank Corp (INDB)

• OceanFirst Financial Corp (OCFC)

Wrap up

This will be an interesting day for the markets, with many opportunities but consistent difficulties. Please continue to tread lightly, but look to take advantage of these market conditions when you can. Practice safe risk management, protect your bottom line, and just be smart and safe in the process. Hopefully, the markets bounce here off $500, and we rally in the process, but in the case that the markets sell off, ride the momentum and capitalize on the bearish momentum. 

Good luck trading, and let’s see where the markets decide to take us!