HaiKhuu Daily Report 05/20/2024

Good morning, and happy Monday! I hope you all had a wonderful weekend and are ready for what should be another fun week! With $SPY displaying recent strength and retail traders coming back into the markets, we are going to see a significant amount of opportunity and active inflow that should positively impact the markets.

For economic news this week, the three major events to watch are FOMC minutes on Wednesday, the manufacturing PMI on Thursday, and inflation expectations on Friday! These events, in addition to continued economic speakers throughout the week, will impact the markets heavily.

The major organization with earnings this week is $NVDA, so be sure to watch their performance on Wednesday after hours. That will be an interesting day for everyone involved.

There is a lot that is happening this week, so prepare accordingly and have some fun!

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

The updated $SPY daily levels are as follows:
Conversion Line Support: $523.33
Baseline Support: $512.69
Psychological Support: $500
Daily Cloud Support: $515.42

Thoughts & Comments from Last Week

Last week was a BEAUTIFUL week for the markets, with consistent bullish momentum and NEW all-time highs on $SPY. Meme season came back, and traders were provided with insane opportunities to not only trade but realize significant gains in the process. Everyone should have had a phenomenal week and enjoyed the confidence coming back into the markets.

We started the week with $SPY trading at $522.59 on Monday and watched as conditions remained relatively neutral during that time, seeing some slight bearish momentum in the process. We, thankfully were able to continue to respect the daily cloud support throughout the rest of the day. The interesting thing that happened was that Roaringkitty, the trader that started the $GME craze, started to post again on Twitter, and as a result, we watched as $GME and $AMC rallied extremely hard as a result. Tuesday was relatively neutral, with some slight bullish momentum in the markets, watching as we were actively testing a new all-time high in the process. Again, conditions were not extremely optimal, but it set up what was a genuinely beautiful time for Wednesday.

On Wednesday, we watched as $SPY gapped up on the daily timeframe as CPI numbers came back, and conditions looked extremely great. $SPY made a new all-time high as a result, as we were watching as $SPY was testing $530. Newfound confidence came into the markets, and we continued to push as a result. We made the official all-time high after rallying on Thursday, with $SPY trading at $531.52.

We ended the week with Friday being a choppier day with no exciting opportunities other than scalping a dip towards the end of the day. Thankfully, again, conditions remained relatively optimal, and we watched as $SPY ended the week trading at $529.45. That means $SPY moved up roughly $7 in the process, or roughly 1.3%. Traders were provided with amazing opportunities to trade and realize gains in the process, and I hope that you all enjoyed what was an extremely exciting ride with both momentum and opportunity. Let’s see what this week has in store for us, but be excited about a breakout in these market conditions.

Thoughts & Comments for Today, 05/20/2024

Today SHOULD be a fun time for the markets. I will say that the one thing that really excites me going into the summer session is the fact that retail is coming back to the markets extremely quickly at the moment. If retail continues to come back at the rate that they are, and this is able to remain consistent for the next week or two, I will say it now, and I will happily say it again. I am expecting to see NEW all-time highs on $SPY continuously throughout the summer unless there is major news that we cannot account for. IE, war, laws, or something relatively unimaginable.

For now, the same sentiment remains that I’ve discussed before. I would highly advise everyone to look to hold solid organizations that they’ve already allocated into, that are fundamentally solid, and look to hold those positions and ride the market momentum. Many traders, are going to attempt to overallocate in the markets, but realistically, this is one of those times that you should attempt to keep your strategy more simplistic. I am hesitant on allocating here in the markets as $SPY has already moved up significantly, but if you are holding fundamentally solid organizations you are both comfortable and confident in, let those positions ride.

I am not saying that you should not look to take advantage of short-term momentum and opportunities, though. With these current market conditions, I am expecting to see a significant amount of both chop and opportunities being presented to us in the short term, and you should look to take advantage of those conditions where possible. It is just a matter of being able to capitalize on those opportunities with consistency. That is going to be the most difficult part of navigating these conditions. There is confidence in the larger scale, as well as comfort while holding strong positions. Navigating choppy conditions will be extremely difficult to do with comfort, mostly when it would have been significantly easier to ride market momentum.

For my allocations today, I do plan on keeping things simpler. I want to ride the general market momentum, but at the same time, I want to look out for the opportunities that are presented to us. With the strength in the markets, I do want to allocate more to higher beta stocks, but at the same time, I am stuck holding many positions that could be optimized. I have no intentions of selling either my $LULU or $ULTA for a loss, so both of those positions are plays that I will hold here in the short term while looking to scalp and trade organizations like $TSLA and $RIVN.

Please continue to protect your bottom line and practice safe risk management. Many traders will have a difficult time navigating these conditions, mostly because we will start to see some irrational movements in the markets. Consistency is key to your success in these market conditions, and limiting risk is just a part of it. So make sure to scale into positions accordingly, limit your downside risk, and consistently adjust your stops accordingly to remain profitable.

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, $TSLA, $RIVN, $ULTA, $LULU, $BABA, $NVDA, $AMD

LONG OPPORTUNITIES:

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

Economic News for 05/20/2024

Fed’s Bostic Speaks - 8:45 AM
Fed Vice Chair Barr Speaks - 9:00 AM
Fed’s Waller Speaks - 9:00 AM
Fed Governor Waller Speaks - 10:30 AM
3-Month Bill Auction - 11:30 AM
6-Month Bill Auction - 11:30 AM

Notable Earnings for 05/20/2024

Pre-Market Earnings:

Li Auto (LI)
Wix.com (WIX)
Global-e Online (GLBE)
Nexxen International (NEXN)
Compugen (CGEN)
Freightos (CRGO)
Arqit Quantum (ARQQ)
ECARX Holdings (ECX)
Sohu.com (SOHU)

After-Market Earnings:

Palo Alto Networks (PANW)
Zoom Video Communications (ZM)
Trip.com (TCOM)
James Hardie Industries (JHX)
Nordson (NDSN)
Transcat (TRNS)
Tuya (TUYA)

Wrap up

This should be an extremely exciting week for the markets with many opportunities not only to trade, but to simply ride the inconsistent market conditions. I am expecting to see a new all-time high on $SPY consistently throughout the week, so it is just a matter of capitalizing on the opportunities when I can and realizing gains in the process. Let’s see where the markets take us this week and make the most out of the opportunities that are presented to us!

Good luck trading, and let’s see new all-time highs on $SPY this week!

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