HaiKhuu Daily Trading Report

Good morning, and happy Thursday! We are back in the Chicago headquarters and I am EXCITED about trading with you all today! Market conditions are not looking the best, but they are not looking bad. We are relatively neutral at the time of writing this report, and I am excited about today. We had many major earnings from organizations like $ARM and $HOOD last night, which will not impact the markets heavily but will provide us with some great opportunities to trade and scalp with relative ease.

We have been consistently trending at cloud resistance and have remained relatively neutral since Monday, so this is going to be an interesting time for the markets. We are going to see a movement in the markets soon, but the question is which direction we are headed. There is a good chance that we break out and rally, and there is a good chance we ultimately come back down. Remain optimistic in these conditions, but tread lightly on these market conditions and keep your fists up because anything can realistically happen.

Let’s see which direction the markets want to trend today, and hopefully, we will see a breakout we can all capitalize on!

Good luck trading, and let’s watch as $SPY breaks out!

The updated $SPY daily levels are as follows:
Conversion Line Support: $509.06
Baseline Support: $508.86
Psychological Support: $500
Daily Cloud Resistance: $517.61

Thoughts & Comments from Yesterday, 05/08/2024

Yesterday was a disgusting day for the overall markets, but it presented us with opportunities to trade on an intraday basis. We had almost no overall movement on a day-to-day basis, but traders at least had an opportunity to realize gains while attempting to trade yesterday. It was an alright day for traders, but investors really have not seen much movement over the previous couple of trading days as we have continued to remain neutral at cloud resistance.

We started the day with $SPY opening at $515.30, down roughly $2 from the previous close, looking relatively weak going into open, but conditions continued to get better throughout the early morning. Right after open, $SPY rallied for the first hour of the day, going on to make a relative high, trading above $517 and looking extremely strong throughout the morning. The overall markets went green for the day, but that confidence was short lived as despite taking an hour to quickly move up, it took three hours of slowly selling off before $SPY was able to find support again. The selling was honestly disgusting as it took place because it was a slow bleed that continually chopped around and would not bounce until the early afternoon.

$SPY made a relative low in the afternoon, trading right above $516. Conditions were not ideal in any way, shape, or form, but we did watch as the markets recovered extremely quickly once we started to reverse, leading into the back half of the afternoon.

Power hour was not exciting at all; conditions remained relatively neutral, but we did watch as $SPY made the official high of the day, trading at $517.71, and watched as $SPY continued to chop around and sell off slightly into close. We ended the day officially at $SPY $517.19, up $0.05 for the day, or up a staggering 0.01%. On an overall basis, yesterday was a blip and a wash, as there was no real movement from a day-to-day standpoint, but $SPY thankfully moved up roughly $2 on an intraday basis.

The markets provided us with opportunities to actively trade the momentum, assuming you timed out your positions correctly, but realistically, it was a relative wash for the markets for the majority of people who simply have been holding equities in their portfolios. C’est la vie: life moves on, and we should be grateful that the markets did not sell off. Hopefully, we see more movement in the markets today, and watch the markets break out accordingly.

Thoughts & Comments for Today, 05/09/2024

Today is shaping up to be an interesting day. With market conditions remaining relatively neutral, I am not expecting to see significant movement in the markets. We are in a state of confusion about the direction the markets will ultimately lead us, but I am extremely optimistic. This confusion presents us with an opportunity to pick a direction and pray that our narrative is correct.

To remain relatively unbiased, I’ll discuss the sentiment in both directions and then touch on my personal thoughts.

Bull case- To remain optimistic about these market conditions, there is a very high likelihood that the markets will break out at this point. We have seen a weak bullish TK crossover on the $SPY daily, which is a slight sign of confidence, but we have not broken above the daily cloud resistance; we are less than 2% away from making a new all-time high on $SPY, meaning we are within a striking range, and could easily see a breakout in the markets as a result of this. The markets are still displaying significant strength, and we are at a place of remaining optimistic about these market conditions, but now we need to see a breakout in the markets as $SPY pushes here at the daily resistance. In the case we break out, there is an extremely high likelihood that the markets continue to rally and make a new all-time high. Watch for a breakout of the $SPY daily cloud resistance to prepare for an opportunity to continue to ride the momentum.

Bear case- To remain neutral about sentiment, there also is a high likelihood that the markets can come down. With the movement we’ve seen over the previous couple of months, we are seeing strength in the markets, but this is the first time in a while that we are starting to see cracks form in the foundation. Realistically, many equities and sectors are heavily overpriced (Looking at you semi’s) and they need to come down. With the markets continually rejecting the cloud resistance, we could easily see another sell-off happen, and once semiconductors start to display weakness and sell-off, we will see an extremely quick sell-off in the markets. Watch for a rejection of the $SPY daily cloud to prepare for some bearish momentum.

Personal thoughts - I personally want the markets to move up accordingly, and it would be selfish for me not to want that sentiment in the markets. I do believe that there is an extremely high likelihood that the markets are able to break out, but I personally advise everyone to trade extremely lightly and would advise that you look to hedge higher-risk positions in your portfolio. We can very easily watch as the markets break out at this current resistance, but at the same time, we can very easily sell off. The best way to navigate these conditions, in my opinion, is to look for opportunities you can seize in the short term and be relatively fluid with your positions while, at the same time, still having long positions that you can hold and add to secure positions and continue to let them grow accordingly with time. It never hurts to take profits off the table if you are still holding many allocations, as it never hurts anyone to take profit. This is a great time to prepare your portfolio and adjust accordingly; just remain smart and diligent, and you’ll have a great time.

For my positions today, I will say one position I am extremely interested in taking is an $ARM CSP. $ARM had earnings yesterday, and as a result, they have dropped roughly 8% in the process. This is not the sexiest of plays, but this is going to be a play that you can look to secure with relative ease. Look for some highly OTM contracts that still have premium, and allocate accordingly. I am looking at the $90/$95 strike puts, whichever is right outside the expected range. This will give us an amazing opportunity to realize a significant amount of premium on an intraday basis, and I would advise taking this position off quickly within the first hour or two of the day as the premium on the contract craters. I would advise also scaling into this position slowly, just in case the position goes against us quickly, and you have the ability to average into your position, and adjust accordingly.

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.

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, $ARM, $HOOD, $TSLA, $RIVN, $NVDA, $AMD, $INTC

LONG OPPORTUNITIES:

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

Economic News for 05/09/2024

Jobless Claims - 8:30 AM
4-Week Bill Auction - 11:30 AM
8-Week Bill Auction - 11:30 AM

Notable Earnings for 05/09/2024

Pre-Market Earnings:

Roblox Corporation (RBLX)
Warner Bros, Discovery (WBD)
Medical Properties Trust (MPW)
Sundial Growers (SNDL)
Constellation Energy (CEG)
Viatris (VTRS)
Planet Fitness (PLNT)
Papa John's (PZZA)
Hyatt Hotels (H)
US Foods Holding (USFD)

After-Market Earnings:

Marathon Digital Holdings (MARA)
SoundHound AI (SOUN)
CleanSpark (CLSK)
Unity (U)
Credicorp (BAP)
H&R Block (HRB)
Yelp (YELP)
Akamai Technologies (AKAM)
Insulet (PODD)
Dropbox (DBX)

Wrap up

Hopefully, we will see some actual movement in the markets today. Conditions are primed to see a large movement in either direction. The real question is… which direction are we going? Do we break out of this daily cloud on $SPY, or do we reject and come back to the conversion/baseline support? Your prediction is as valid as mine, but let’s see. Hopefully, the markets can break out here with relative ease.

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

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HaiKhuu Daily Report 05/09/2024