HaiKhuu Daily Report - 05/05/2025
Good morning, and happy Monday!!! I hope you all had a wonderful weekend and are ready for some more confusion, volatility, and opportunity! This will be a wild week with significant earnings and economic news.
Markets are looking weak when writing this report, but short-term weakness can be easily recovered, but will impact sentiment going into open. If anything, just make sure to tread lightly and be careful when attempting to allocate. At this moment, I believe that trying to allocate today will be tougher, but opportunities will present themselves and traders can capitalize on both directions easily; it is just a matter of catching the market momentum.
If you’ve not checked out the weekly preview, I highly suggest you check it out HERE .
As I said before, there is a significant amount of earnings, with the major economic event happening this WEDNESDAY with an FOMC meeting, and Jerome Powell speaking afterward. With earnings consistently throughout the week, on top of economic news, it will make trading difficult, inconsistent, and volatile, but again, that is just the fun of the markets. Navigate that confusion, and capitalize on these conditions!!!
Good luck trading this week, and let’s enjoy this volatility!!!
The updated $SPY daily levels are as follows:
Conversion Line Support: $543.79
Baseline Support: $526.35
Psychological Support: $550
Daily Cloud Support: $572.70
Thoughts & Comments from Last Week
Last week was honestly a wonderful week for the markets. Conditions were strong, opportunities were amongst us, and traders realized significant gains in the process. Hopefully, you all had a wonderful time capitalizing on the confusion in the markets last week and continued to ride the momentum of your long, strong US equities!
So, we started the week with $SPY trading at $551.38, conditions were looking strong as $SPY was above the $550 support level, but watched as markets dropped from the get go, making Monday an extremely confusing day to navigate, with $SPY almost creaint a perfect dragonfly doji on the daily. $SPY dropped $6 from open, but essentially recovered everything before closing.
Tuesday was relatively insignificant, as there was just continued strength and confidence. But Wednesday was where things started to get fun. $SPY quickly gapped down on Wednesday, going from $554.32 at close on Tuesday, to open at $547.57 on Wednesday, to go on and make the low of the day at $541, before recovering everything, ending the day essentially black at $554.54, beautifully green from open, and green from the previous close. If anything, I would say that Wednesday was the toughest day to navigate.
Thursday was relatively uneventful overall, but we watched as the markets gapped up beautifully during the pre-market session as a result of $MSFT and $META earnings, both blew it out of the water, and $SPY gapped up from $554 to open the day at $560.37, rally to $564, and sold off into close, where we officially ended the day at $558.47, and watched as $AAPL and $AMZN die on earnings.
But hey, that is where market conditions get confusing and almost vomit-inducing. Alright, markets are selling off, looking relatively weak, and two of the largest companies in the world are selling off as a result of good earnings numbers, but tough forward guidance, which is what the majority of traders expected. So, markets should be deadly, traders should prepare for a sell off, and we are about to lose our asses right?
Wrong.
$SPY opens up on Friday, gapping up from the previous close, opening the day $6 higher than it closed the night prior. Conditions were great, traders were optimistic, and then the markets decided they did not want to do anything. Markets slowly trended up throughout the day, but conditions were less than optimal for trading on Friday. There were opportunities to scalp small movements in the markets. Still, unless you were overexposed and took on too much risk, there was no way to seriously generate any significant realized gain in a short time on Friday. Regardless, we ended the week with $SPY trading at $566.76, up $15 for the entire week or up roughly 2.8%.
I will say that last week was a great week for the market, but I will also say that it was a terrible time for those who were attempting to trade. Markets remained extremely stagnant within a consolidation as $SPY tested major support/resistance levels, but it is simply life, and these market conditions. I hope you all have been able to capitalize on these market conditions and not burned by the chop. Anyone holding strong equities with us should have had a great time last week, so let’s see what this week has in store for us!
S&P 500 Heat Map - 05/02/2025
Thoughts & Comments for Today - 05/05/2025
Today is going to be a tough day for people. With the way the markets are looking at the time of writing this report, $SPY is down $4 during the pre-market session, and I do not know if we have the strength and confidence to recover everything perfectly before open. There is no major economic news that we can count on, nor are there any major earnings that may result in the instant recovery of the markets. So, unless there is an orange swan, assume that we will open this week slightly red, and assume that traders will have less optimism going into open.
That lack of optimism is a sign of weakness for the markets, and I want to warn you all that, again, if the markets sell off, we can quickly snap back to that $550 magnet zone. We are not out of the woods yet, and they are slowly attempting to suck us back in. $SPY, in my opinion,n is out of the clear once we break $570, and realistically safe once we break $580. Until then, mostly when $SPY is in the $560~range, I am expecting a large movement in the foreseeable future, the question is how large is that movement, and which direction do we go? Obviously, any speculation is up for discussion, but in reality, the markets can genuinely go either way. I would like the markets to continue to move up, but at the same time, I understand the possible reality and risks involved in the markets.
Please tread lightly this week. Momentum is going to shift heavily due to ongoing market conditions and events people are preparing for, but at the same time, this will be a great opportunity to trade, and many will have a phenomenal time.
Do not forget, WEDNESDAY is the most important day of this week. With FOMC and Jerome Powell on Wednesday, traders will adjust allocation styles leading into the event and prepare for an extremely large directional move. The question is, where are we going from here?
One play I am interested in today is a short position on Kraft Heinz ($KHC). Recently, their operations have been impacted heavily due to inflation in the US, where they claimed that their profitability has decreased heavily. During an emergency shareholder meeting this weekend, their CEO stated that they either need to cut their dividends or heavily increase all their condiments' prices. They are currently hemorrhaging money, which is less than ideal, but at the same time, if they do increase the prices of their product, the demand for some of their largest brands will drop heavily. This is an extremely difficult problem for CEOs to have to solve, and I will say, I do not believe that this will impact their Heinz Ketchup brand, but this shift will decrease the demand for any of their products heavily. The CEO speculates that the demand for their secondary condiment projects will drop by at least 50%, and he believes that this will heavily impact their operations, so much so that he’s dubbed today “Sinko De Mayo.”
So, if you’ve read that entire thing and think I was serious, sorry. Thought that was a well-timed joke. Please do not short $KHC, and this should not be construed as financial advice, nor should it be considered a signal to buy or sell any position. If you only read the first line and entered into a position blindly. That is on you.
But in all seriousness, market conditions will be tough to navigate this week with a significant amount of volatility acoming in the near future, please continue to practice safe risk management, limit your exposure and downside risk, and realize some gains in the process of everything. Traders will be provided with opportunities to trade consistently, so please take advantage of these market conditions this week and do what you can to maximize your profit potential. No one should be in a place where they are not benefiting from this market strength, and if you’re NOT capitalizing and benefiting, change what you are doing. Hundreds of Billions of dollars were lost and made over the past week, so just do what you can to get your piece of the pie!
If I see any opportunities, or if I decide to get into any other plays, I’ll announce what I see in the HaiKhuu Discord.
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, $BRK.A, $JEPI, BTC , $GRYP, $INTC, $TSLA, $RIVN
LONG OPPORTUNITIES:
Long-Term Dividend - $GAIN / $JEPI
Long-Term Investment - $INTC / $UNH
Economic News for 05/05/2025 (ET):
Services PMI - 9:45 AM
ISM Services - 10:00 AM
Notable Earnings for 05/05/2025:
Pre-Market Earnings:
Berkshire Hathaway (BRK.B)
onsemi (ON)
Recursion (RXRX)
CNA Financial (CNA)
Axsome Therapeutics (AXSM)
Freshpet (FRPT)
Cummins (CMI)
Henry Schein (HSIC)
Zimmer Biomet Holdings (ZBH)
Tyson Foods (TSN)
After-Market Earnings:
Palantir Technologies (PLTR)
Hims & Hers Health (HIMS)
Ford Motor (F)
Realty Income (O)
Celanese (CE)
Viper Energy Partners (VNOM)
Contura Energy (CTRA)
Clorox (CLX)
AECOM (ACM)
Diamondback Energy (FANG)
Wrap up
Hopefully, market conditions will be favorable for us not only today but also for the rest of the week. Conditions will be tough to navigate, but I am excited to see where things take us, mostly with FOMC coming out this Wednesday. Again, please tread lightly, practice safe risk management, and do what you can to maximize your profit potential. This is going to be a fun time with some great opportunities to trade and realize a significant amount of gains. Make smart decisions, realize some gains, and have some fun!
Good luck trading, and let’s start this week strong!!!