HaiKhuu Daily Report 04/25/2024
Good morning, and happy Thursday! Markets are down at the moment as a result of $META diving on earnings yesterday, but life moves on. Meta is down $60 a share at the time of writing this report, and I hope you all are doing well! There should be some fun opportunities to trade $META today, and I’ll bring them up later on in this report, but this is just a reminder that we are still not out of the woods yet. We have major economic news and earnings reports coming out today from both $MSFT and $GOOG/L. Both are going to impact the markets heavily, so tread lightly and protect your bottom line. $SPY has rejected the daily cloud resistance & the daily baseline resistance. This is going to be a fun time, so let’s make the most out of the opportunities available to us and realize some gains!
Good luck trading, and let’s see what the markets have in store for us today!
The updated $SPY daily levels are as follows:
Conversion Line Support: $504.58
Baseline Resistance: $509.24
Psychological Support: $500
Daily Cloud Resistance: $508.82
$SPY Daily Candles - [04/24/2024]
Thoughts & Comments from Yesterday, 04/24/2024
Yesterday was an extremely confusing day for the general markets. With the way that the markets stood, $TSLA was up significantly at open and provided the markets with strength and confidence, but throughout the day, we saw difficulties start to pile up as traders were conflicted on how to navigate the markets. We watched as some organizations did well despite the markets being in a state of confusion, and we watched as some organizations had a significant amount of downside.
We started the day with $SPY opening up slightly from the previous close, opening at $505.41. Conditions were not looking the best, but they were not looking overly bearish. As the day started, we watched as selling momentum picked up quickly, and we continued to sell off for the entirety of the morning, quickly going red for the day and selling off all of the way until the lunchtime lull, where $SPY made the official low of the day trading at $503.11. Conditions were strong, but we watched as $SPY displayed short term weakness, being lead by $NVDA.
Thankfully, in the back half of the trading day, $SPY did recover, and the recovery was extremely quick. All of the losses that were generated were recovered by the back half of the afternoon. $SPY was trading right above $506 and remained relatively neutral until close. We ended the day with $SPY trading at $505.41, down $0.24 for the day, or down approximately 0.05%, with an intraday bearish movement of a little more than $1.
Overall, yesterday was an alright day for the markets. There was no significant movement at all on either an intraday or an overall basis, but it is still great to capitalize on the general market momentum. We were presented with many great opportunities to trade and realize gains with confidence, but it was difficult to remain consistent in the process. Let’s see what the markets have in store for us today!
Heatmap - $SPY 04/24/2024
Thoughts & Comments for Today, 04/25/2024
Today is going to be an extremely fun day for the markets. There is a significant amount of pre-market news, which is going to make trading extremely inconsistent during the pre-market session and will be the catalyst for the sentiment around open. Make sure to tread lightly, as anything can happen, but be optimistic as opportunities will become available as a result. Hopefully, numbers will come back strong, and we will move up consistently, but realistically, we should just prepare accordingly and tread lightly on these market conditions, as it is better to be safe than to take on a significant amount of risk.
I do want to take a little bit of time to talk about earnings. Over the past couple of days, many individuals have had a difficult time navigating earnings, with $TSLA double missing yet rallying and then $META doing phenomenally yet absolutely cratering. This is an underlying risk that is involved with allocating specifically speculating on earnings. It is difficult to gamble on earnings as surprises can happen, and this is why I never advise people to gamble on earnings. The only time I like playing earnings is when I have confidence that I have an edge on the play or simply want to have some fun with some petty cash. It is not worth gambling on earnings, but it is extremely easy to be reactionary to the initial reaction and capitalize on the opportunity as a result. It is a lot easier to buy with confidence on a strong organization that had great earnings and is increasing investor sentiment than attempting to speculate on a coin toss, that in the end, you may be right on the sentiment but wrong on the movement. Please be careful if you are attempting to trade earnings, and just remember that, again, it is a lot easier to be reactionary toward a large movement than attempting to gamble and predict an irrational movement.
Now, let’s talk about my plans for $META. With $META double beating on earnings yet coming down significantly, I believe this is going to be an amazing opportunity to sell some CSPs against the organization. Yes, there is an underlying risk of possible assignment and capital requirement necessary to sell these CSPs, but as a result of the downside the organization has seen, I believe that this is going to be a great opportunity to capitalize on the downside. Premium is going to be increased after these earnings, and as a result, I am extremely interested in attempting to trade this where possible. I would not advise attempting to take on a significant amount of risk with this position, but this is something that I do heavily advise everyone to actively consider in these conditions.
For my allocations today, the primary position that I will be watching is $META. I am not looking to make any sort of life-changing money today, but with $META double beating on earnings and coming down, I do anticipate the put premium to be significant. My goal is to sell a CSP around open, with the anticipation of closing it within the first hour or two of the day. This is not a sexy play, and there are underlying risks involved, but I believe that this is a great way to capitalize on the premium that will be available without having much general exposure. The strike price I decide will be dependent on the premium that is available, but ideally, I can go significantly OTM and still be able to realize gains in the process. I’ll look for other scalp and trading opportunities when I can, but again, I am not overly ambitious to overallocate in these market conditions.
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, $META, $GOOG/L, $MSFT, $BA, $NVDA, $RIVN, $TSLA
LONG OPPORTUNITIES:
Long-Term Dividend - $GAIN / $JEPI
Long-Term Investment - $BA
Confirmed Re-entry - $RIVN, $ULTA, $LULU
Economic News for 04/25/2024
GDP - 8:30 AM
Jobless Claims - 8:30 AM
PCE Prices - 8:30 AM
Pending Home Sales - 10:00 AM
4 & 8 Week Bill Auction - 11:30 AM
7-Year Note Auction - 1:00 PM
Notable Earnings for 04/25/2024
Pre-Market Earnings:
Royal Caribbean (RCL)
Altria (MO)
American Airlines (AAL)
Caterpillar (CAT)
Southwest Airlines (LUV)
Bristol-Myers Squib (BMY)
Valero Energy (VLO)
AstraZeneca (AZN)
Comcast (CMCSA)
Merck & Co (MRK)
After-Market Earnings:
Microsoft (MSFT)
Alphabet (GOOGL)
Intel (INTC)
Snap (SNAP)
Roku (ROKU)
Western Digital (WDC)
T-Mobile (TMUS)
L3Harris Technologies (LHX)
Capital One (COF)
Gilead Sciences (GILD)
Wrap up
This is going to be an extremely fun day for the markets, with major economic news and earnings coming out today. Please continue to tread lightly on these market conditions, but do what you can to maximize the opportunities that are available to us. We should have a lot of fun and a great time today, so capitalize on the opportunities, and let’s realize some gains!
Good luck trading, and let’s see where the markets decide to go today!