HaiKhuu Daily Trading Report

Good morning, and happy Monday! I hope you all had a wonderful weekend and are ready for what should be a rather interesting time for the markets. Conditions are looking extremely strong, and opportunity is among us. We have many major earnings, Fed speeches, and economic news this week, including earnings from $DIS, $RIVN, and $RBLX. On Friday, we have the UMich Inflation Expectations coming out, so that is going to be interesting seeing how close we are to the 2% target we’ve been trying to achieve. Markets are up at the time of writing this report, so I am expecting to see another beautiful day for the markets.

Hopefully, $SPY will break out of the daily resistance and come back to test all-time highs. $SPY is less than 3% away from making that high, so just know we can achieve that with relative ease. Let’s see where the markets take us this week, so prepare accordingly, as they are going to be volatile.

Good luck trading, and let’s have an amazing time this week!

The updated $SPY daily levels are as follows:
Conversion Line Support: $505.11
Baseline Support: $509.12
Psychological Support: $500
Daily Cloud Resistance: $515.84

Thoughts & Comments from Last Week

Last week was an interesting time for the markets. There were a significant number of opportunities, but many traders had difficulties navigating the conditions confidently. We saw opportunities to capitalize in both directions and $SPY displayed the strength of the support at $500. It was an alright week for the markets with great opportunities to trade and realize a significant amount of gains. I hope you all had a phenomenal week and had some fun in the process!

We started the week with $SPY trading at $510.16 and looking relatively strong. Conditions were relatively neutral and calm to start the week off, but Tuesday is where the bearish momentum quickly set back in. $SPY went from trading above the daily baseline support to quickly dropping to $10 and testing the $500 support level for the first time. $SPY dropped $8 on Tuesday and took many people hostage, as everyone ended up selling, leading to FOMC.

On Wednesday, we did have a relatively rough day for the markets, as $SPY was down significantly leading into FOMC, and Jerome Powell was able to save the markets until he couldn’t. Conditions were relatively neutral throughout the entire day with no real momentum and a lot of chop, but leading into FOMC, market momentum picked up as rates remained the same. Once Jerome Powell took the stage, the markets went crazy, as $SPY quickly rallied to make the official high of the day, trading at $508.19, before coming right back down as Jerome Powell left the stage, where we ended the day with $SPY trading right above $500 again.

We did see a bullish recovery on Thursday. $SPY moved up nicely during the pre-market session, preparing us for what was a genuinely amazing rally. We ended the day with $SPY trading at $505.03.

Friday is where the fun really happened. On an intraday basis, there was not a significant movement at all, and we saw an almost perfect doji candle. However, we watched as $SPY gapped up on both positive economic news and bullish sentiment resulting from $AAPL earnings the night prior. Markets rallied during the pre-market session but stayed relatively neutral on an intraday basis. We opened Friday with $SPY trading at $511.13 and ended the week with $SPY trading at $511.29, up roughly $1 throughout the entire week, or up 0.2%.

Market conditions were difficult to navigate last week, but it provided us with some great opportunities to both trade and realize a significant amount of gains. I hope that all of you were able to capitalize on the insane volatility we saw in the markets, and were able to realize gains with us in the process! Let’s see what this week has in store for us and make the most out of the opportunities available!

Thoughts & Comments for Today, 05/06/2024

Today is setting up to be another fun day for the markets. As I said before, $SPY is up at the time of writing this report, and we are coming up the daily resistance, which is a general sign of confidence for the markets. With the way that everything sits right now, you should remain optimistic about these market conditions, and excited to actively trade where possible. The resistance level that you want to look out for today is $SPY $515.84. That is the daily cloud resistance, and if we are able to break back above that level, we are not out of the woods yet, but we can start to put our guard down, as $SPY would have a confirmation of a reversal, and would start to display significantly more strength.

The traders who are interested in participating in these market conditions should look to take advantage of these conditions. This is a trader's paradise with opportunities, volatility, and irrational movements that all could be very easily capitalized on. If you are attempting to trade, have some fun and do what you can to maximize your profit potential. Follow the momentum, do not fight the trend, and follow the smart money. It is extremely easy not to practice risk management in these conditions, but with that said, it is also extremely easy to lose a significant amount of gains. So, do the right thing, make the right decisions, and practice safe risk management to limit the risks that you are taking in these market conditions.

We can very easily see another breakout in the markets from here, and you should remain optimistic to watch the markets rally, but at the same time that we can easily see the markets rally from here, we can also watch as $SPY ultimately comes crashing back down. This is not the worst place to add a slight hedge to your portfolio. This is not a suggestion to hedge your entire portfolio or to be overly bearish as a result of this movement up, but if you are uneasy about a high-beta play that you are not comfortable holding through the downside, but want to have exposure, look to hedge those positions.

For my allocations not only today, but this week, I plan on being more passive in the markets until Thursday. This is due to general work going on at the moment and not being able to trade consistently. I am personally comfortable with the underlying market conditions, but I rather be safe and passive than sorry and overly aggressive when I do not have the time to watch the markets consistently. I would not expect to see the market conditions get worse, and I am extremely optimistic about the current holdings that I have, but I am going to be more passive until Thursday this week when the active day trading and scalping I will do will increase significantly. Regardless of my current conditions though, 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.

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, $ULTA, $LULU, $MSFT, $NVDA, $AAPL, $TSLA, $RIVN

LONG OPPORTUNITIES:

Long-Term Dividend - $GAIN / $JEPI
Long-Term Investment - $BA
Confirmed Re-entry - $RIVN, $ULTA, $LULU

Economic News for 05/06/2024

3-Month Bill Auction - 11:30 AM
6-Month Bill Auction - 11:30 AM
Fed's Barkin Speaks 12:50 PM
Fed's Williams Speaks - 1:00 PM

Notable Earnings for 05/06/2024

Pre-Market Earnings:

Spirit Airlines (SAVE)
Berkshire Hathaway (BRK.B)
Foot Locker (FL)
Tyson Foods (TSN)
CNA Financial Corp (CNA)
Jones Lang LaSalle (JLL)
Alpha Metallurgical (AMR)
Bowlero (BOWL)
BioNTech SE (BNTX)
TreeHouse Foods (THS)

After-Market Earnings:

Palantir Technologies (PLTR)
Symbotic (SYM)
Realty Income Corp (O)
Rocket Lab USA (RKLB)
His & Hers Health (HIMS)
Coherent (COHR)
Microchip Technology (MCHP)
Axon Enterprise (AXON)
Vertex Pharmaceuticals (VRTX)
AECOM (ACM)

Wrap up

This is going to be an extremely fun week, so look to take advantage of the market conditions, practice safe risk management, and limit your downside risk where possible. Many traders are going to have a phenomenal time and realize significant gains, so be one of those traders and do what you can to maximize your potential.

Good luck trading, and let’s see what $SPY has in store for us this week!

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HaiKhuu Daily Report 05/06/2024