HaiKhuu Daily Report 04/19/2024
Good morning, and happy Friday! I hope you are excited about the weekend because these market conditions are looking rough. $SPY has continued to downtrend in the daily cloud, and as a result, traders are having a significant amount of difficulty realizing gains with confidence. Opportunity is among us, but treading lightly is necessary to survive these market conditions. $SPY is below $500 and we are displaying continued weakness in the markets. If we get another day or two of selling, $SPY will have broken below the daily cloud for the first time in almost six months, which is not going to be a sign of confidence at all in any way, shape, or form. Tread lightly on these market conditions, and realize gains when you can. Markets are weak, but we are due for a bounce here in the short term. Let’s do what we can to maximize the opportunities that are available to us and have a great time in the process.
Good luck trading, and let’s see what $SPY does here!
The updated $SPY daily levels are as follows:
Conversion Line Resistance: $507.86
Baseline Resistance: $509.79
Psychological Resistance: $500
Daily Cloud Resistance: $508.02
$SPY Daily Candles - [04/18/2024]
Thoughts & Comments from Yesterday, 04/18/2024
Yesterday was a tough day for the markets. It was a day full of opportunities to play both directions with ease, but it was extremely difficult to capitalize on as a result of the general confusion in the markets. Some traders were able to make money, other traders lost money, and many missed out on a significant amount of gains. It was unfortunate watching as market conditions could have been more ideal, but we cannot deny that opportunity was amongst us. There was volatility, momentum, and the ability to realize gains, it may have been a disgusting day, but again, opportunity was there.
We started the day with $SPY looking strong, opening at $501.99, up from the previous close, before quickly coming down to test $500 for the first time in the day. That was a sketchy time as $SPY continually dropped for the first couple of minutes in the day before making that low, and watched as $SPY rallied up afterward and pushed up all the way through the lunchtime lull to make the official high of the day trading at $504.12. Conditions were looking extremely strong during that time, but as volume and momentum came back into the markets, we watched as $SPY quickly sold off during the first half of the afternoon.
By 1 PM EST, markets had already sold off 100% of all gains incurred. We watched as $SPY broke below $500 and continually hovered in that area for the large majority of the afternoon. We watched as $SPY made the official low of the day while chopping around, making the official low trading at $498.57.
Not much happened by close as $SPY continued to hover within an extremely tight range, and we ended the day with $SPY trading at $499.52, down $1.03 for the day, or down 0.2%, with an intraday bearish movement of $2.50. For the overall day, not much realistically happened, but the difficult part was the fact that $SPY was extremely volatile and had crazy momentum. There were consistent opportunities, and hopefully, you all were able to capitalize on them with us!
Heatmap - $SPY 04/18/2024
Thoughts & Comments for Today, 04/19/2024
Today is going to be a difficult day for the markets. With the way that everything stands, $SPY can easily sustain itself below $500, and that is not a sign of confidence, mostly as we are getting ready to watch $SPY break below the daily cloud support. Conditions are not ideal, and we are starting to display continued weakness. We are at the lower end of fear on the fear and greed index, which is starting to make me more comfortable in these market conditions, but we can easily continue to slip and sell off with ease, assuming we get some more war headlines. Tread lightly on these market conditions, but just know that realistically, this is going to become an amazing dip buying opportunity, the only issue is when does the dip stop dipping, and when we ultimately bounce. Hopefully, we bounce here on the daily cloud support, but the markets can remain irrational longer than we can stay solvent. Don’t allocate too early into these market conditions, but prepare to allocate long when you have both the comfort and confidence to do so.
The one level that is really concerning to me at this point, is the daily cloud support. With markets not displaying the level of confidence that I want, we can easily see $SPY break below the daily cloud support, which would be the first time we are beneath the cloud since November 2023, and that is going to cause fear among many traders. Ideally, we are able to bounce before testing and breaking below that level, but in the case that we do break below the cloud support, I am expecting to see many traders be extremely fearful and possibly see accelerated selling.
I will say that I am extremely interested in purchasing at the moment. I will not start purchasing just yet, but I believe that given enough time and a confirmation of a reversal, that this is an amazing dip buying opportunity. The only issue is the uncertainty of what is about to happen. Is this the dip buying opportunity? Or is this the beginning of something that is going to be significantly worse. With $SPY displaying many signs of weakness, I am not overly excited to actively purchase, but I am excited to see where the markets go here in the short term and trade the momentum with comfort. The way that I anticipate the markets right now is what I would suggest many traders do too. Look to actively scalp and trade the general market momentum and be fluid with your direction, prepare to allocate long into the markets with some undervalued organizations, but do not anticipate purchasing until there is a confirmation of a reversal, or you are extremely confident in the play. Many traders are going to get wiped out watching the markets come down here in the short term, but opportunities will be consistently presented to people who are attempting to realize gains in the short term. So tread lightly, but take advantage of these conditions.
For my allocations today, I do plan on keeping them relatively simple. I do plan on actively trading and scalping when I have an opportunity to do so, but I am not looking to take on a significant amount of risk. Market conditions are not favorable, and I would rather remain relatively passive in these market conditions than attempt to take on a significant amount of risk when I am not comfortable or confident. I’ll still continue to allocate accordingly, but I will be treading lighter than usual as I am not comfortable with these conditions. If the overall markets are looking strong though, I will attempt to allocate long with relative confidence.
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 04/19/2024
Fed’s Goolsbee Speaks - 10:00 AM
Baker Hughs Oil Rig Count - 1:00 PM
Notable Earnings for 04/19/2024
Pre-Market Earnings:
American Express (AXP)
Procter & Gamble (PG)
SLB (SLB)
Wipro Limited (WIT)
Fifth Third Bancorp (FITB)
Huntington Bancshares (HBAN)
Regions Financial Corp (RF)
Wrap up
This will be an interesting way to end the week. Protect your bottom line, tread lightly, and prepare accordingly. There will be many great opportunities to trade with both comfort and confidence, but it is just a matter of remaining calm and collected at the same time. Do not take on a significant amount of risk, and open up opportunities for you to realize gains with confidence. Many traders are going to have a difficult time realizing gains, but many others will have a great time in the process. So maximize the opportunities that are presented to you!
Good luck trading, and let’s end this week strong!