HaiKhuu Daily Report 05/22/2024
Good morning, and happy Wednesday!
I hope you all are prepared for this week's most volatile day! Both FOMC minutes and $NVDA earnings are coming out, meaning volatility is about to increase significantly. If the markets move up as a result of either of those events, we will see another all-time high on $SPY!
Make sure to tread extremely lightly on these market conditions and prepare accordingly. Many traders are going to be able to realize a significant amount of gains, while others are going to have a difficult time. Meme season is continuing to trend as some organizations are going wild. This is going to be an amazing day for the overall markets, with opportunities consistently being presented to us, so take advantage of the momentum in the markets and have a lot of fun in the process!
As a side note, we just got featured in the Wall Street Journal again, this time in their official podcast, so if you have some free time, check it out!
Did ‘Roaring Kitty’ Just Spark a Meme Stock Sequel?
Good luck trading, and let’s see what the markets have in store for us!
The updated $SPY daily levels are as follows:
Conversion Line Support: $525.58
Baseline Support: $512.71
Psychological Support: $500
Daily Cloud Support: $513.22
$SPY Daily Candles - [05/21/2024]
Thoughts & Comments from Yesterday, 05/21/2024
Yesterday was a great day for the markets, with continued bullish momentum and a test of the previous all-time high. Markets were slightly choppy and inconsistent, but overall, we did see some continued bullish momentum that everyone should have had no problem capitalizing on. It was great to see the momentum in the markets and, even better, to realize gains in the process!
We started the day with $SPY opening at $529.33, down slightly from the previous close, but realistically, we were relatively neutral. $SPY continued to move up early in the morning, going black for the overall day within the first hour. Conditions were not overly bullish, but we saw a consistent inflow of volume, which provided us with consistency and an opportunity.
Markets remained relatively neutral around lunch, with not much going on. $SPY hovered around $530 after the initial rally in the morning. Conditions were slightly bearish but really just neutral around the $530 support, chopping around and making it extremely difficult to trade.
Thankfully, during the back half of the trading day, we started to see some bullish momentum come back into the markets. $SPY moved up, breaking out of the consolidation we saw at $530, and went on to make a high of the day, leading into close trading at $531.51, $0.05, away from the previous all-time high.
We ended the day with $SPY trading at $531.36, up $1.30 for the day, or up 0.25%, with an intraday bullish movement of $2. It was a great day to remain relatively passive in the markets while holding strong equity positions. Hopefully, you all were able to capitalize on the opportunities that were presented to us, and were able to realize a significant amount of gains in the process. It was a lot of fun enjoying the market momentum, and I hope you all are excited about what the markets have in store for us today!
Heatmap - $SPY 05/21/2024
Thoughts & Comments for Today, 05/22/2024
Today is going to be an extremely interesting time for the markets. As I said before, we have both FOMC and $NVDA earnings today. FOMC is going to impact the markets in real-time, and $NVDA earnings are going to heavily impact how the markets trade tomorrow, but both, independently, can drive $SPY to create a NEW all-time high. This is obviously exciting to know going into the trading day, but it is just a matter of being able to remain extremely consistent in the process. Many traders are going to be able to realize a significant amount of gains, while others are going to have an extremely difficult time. Do what you can to maximize your potential, but be realistic about your expectations despite this being a day where we could see some irrational movements in the markets.
I am expecting to see slower market momentum around open, and momentum to be dead around lunchtime, but look for opportunities to capitalize on the sentiment in the markets when you can. Markets should sell off after an initial movement in the morning, again emphasis on “should,” which will give us an opportunity to capitalize on some short-term bearish momentum leading into the lunchtime lull, and hopefully will bounce back as people start to allocate in anticipation of FOMC, which should result in the markets moving back up slightly. This, again, is all hypothetical as a result of the previous movements we’ve seen with FOMC, and it may not play out 100%, but just know this has happened multiple times in the past and will work out again here in the future.
Just make sure to practice safe risk management today while attempting to trade. Many traders are going to have an amazing time, while other traders are going to have an extremely difficult time, and it is unfortunate but it is just the reality of these market conditions. Tread lightly and protect your bottom line.
One thing that I do want to bring up, too, is to please be extremely careful and cautious if you are attempting to trade any meme stocks today. Everyone’s eyes will be everywhere as a result of FOMC, and that is going to lead to a significant amount of inconsistencies as people’s attention is stretched thin. Tread lightly on the memes and protect your bottom line.
For my allocations today, I have the same sentiment as the previous couple of days. I am expecting to see the markets move in an extremely irrational fashion today, mostly as $SPY is testing the previous all-time highs. I am extremely hesitant about how I want to navigate these conditions, but the one thing I do want to say is that I do not want to be overly ambitious. With FOMC happening today, I believe there is an extremely high likelihood that we make a new all-time high today, but there also is a chance that the markets sell-off. I do not anticipate allocating with the anticipation of riding the initial wave, but I will be looking for opportunities to trade the aftermath. I will not be allocating specifically for the $NVDA earnings tonight, but again, I’ll be looking to create positions tomorrow, capitalizing on the movement, regardless of the direction.
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, $NVDA, $AMD, $TSLA, $ULTA, $LULU, $BNED
LONG OPPORTUNITIES:
Long-Term Dividend - $GAIN / $JEPI
Long-Term Investment - $BA
Confirmed Re-entry - $RIVN, $ULTA, $LULU
Economic News for 05/22/2024
MBA 30-Year Mortgage Rate - 7:00 AM
MBA Purchase Index - 7:00 AM
Fed’s Goolsbee Speaks - 9:40 AM
Existing Home Sales - 10:00 AM
20-Year Bond Auction - 1:00 PM
FOMC Meeting Minutes - 2:00 PM
Notable Earnings for 05/22/2024
Pre-Market Earnings:
Target (TGT)
TJX Companies (TJX)
Analog Devices (ADI)
Dorian LPG (LPG)
Dycom Industries (DY)
Golden Ocean Group (GOGL)
WalkMe (WKME)
Petco Health and Wellness (WOOF)
Williams-Sonoma (WSM)
After-Market Earnings:
NVIDIA (NVDA)
Snowflake (SNOW)
e.l.f Beauty (ELF)
VF Corp (VFC)
Synopsys (SNPS)
Star Bulk Carriers (SBLK)
LiveRamp Holdings (RAMP)
Chemical & Mining Co (SQM)
Grupo Supervielle (SUPV)
Wrap up
Hopefully, market conditions continue to remain extremely optimal and provide us with some amazing opportunities to trade and realize some gains. There is going to be an increase in the general volatility in the markets, so just make sure to tread lightly and protect your bottom line. FOMC and $NVDA earnings are going to heavily impact the markets, so make the most out of these conditions and realize some gains!
Good luck trading, and let’s see ANOTHER all-time high on $SPY!