HaiKhuu Daily Report 05/23/2024
Good morning, and happy Thursday!
Markets are going INSANE as a result of $NVDA earnings! We have watched as $NVDA broke above $1,000 on positive earnings and have announced that they are doing a 10:1 Stock split! $SPY is trading at an all-time high at the time of writing this report, and everyone should be absolutely LOVING these market conditions!
I hope you all are prepared and excited for what the markets have in store for us today. Please make sure to tread lightly and do not fight the momentum in these conditions.
This is going to be a great day for the markets as we push highs, so let’s realize some gains and have an amazing time!
Good luck trading, and let’s see where the markets take us today!
The updated $SPY daily levels are as follows:
Conversion Line Support: $526.24
Baseline Support: $513.30
Psychological Support: $500
Daily Cloud Support: $510.90
$SPY Daily Candles - [05/22/2024]
Thoughts & Comments from Yesterday, 05/22/2024
Yesterday was a tough day to attempt to capitalize on. Markets were extremely neutral leading into the FOMC minutes release and provided us with momentum that was extremely difficult to navigate. Many traders unfortunately realized losses in the process, and realized losses as a result, while other people were able to thrive as a result of $NVDA earnings after-hours!
We started the day with $SPY, opening slightly down from the previous close at $530.69. Conditions were not 100% ideal, but traders were extremely optimistic about making a new all-time high. We watched as for the large majority of the morning, we navigated a significant amount of chop and slow momentum, but thankfully, as a result of market conditions remaining relatively strong, we went on to make the official high of the day with $SPY trading at $531.38, less than $0.20 away from the all-time high, and watched as $QQQ made an all-time high trading at $456.82. Conditions were not perfect in any shape or form, but at least traders did attempt to remain as optimistic as they could as $SPY was within striking distance of making a new all-time high.
Leading into the afternoon, conditions remained extremely neutral, not providing traders with any confidence but not fearing anything at all, which is a very clear double-edged sword. Going into FOMC, $SPY started to drop roughly a half hour before the minutes came out, breaking below the $530 support for the first time throughout the entire day, and once the minutes were released, $SPY continued to drop, going on to make the official low of the day trading at $527.62. Conditions were not ideal in any way, shape, or form, but thankfully, we were able to see a nice recovery afterward.
$SPY went on to recover roughly $2 into close, ending the day at $529.83, down $1.53 overall, or down roughly 0.3%. Conditions were not perfect, but it provided us with what was an amazing opportunity not only to realize a significant amount of gains but provided us with the ability to play both sides of the momentum. Traders should have had a difficult time navigating the morning despite having many scalping opportunities, and thankfully, we were able to remain relatively neutral from the open price.
The fun thing that happened though, is after markets closed, $NVDA had their earnings, and traders absolutely DECIMATED the markets as $NVDA ripped to new all-time highs, and $SPY has followed suit. This is setting up the markets for a new high, and we should continue to capitalize on these opportunities when presented a chance! Let’s see what happens today, and have a great time!
Heatmap - $SPY 05/22/2024
Thoughts & Comments for Today, 05/23/2024
Market conditions today are going to be absolutely amazing, and I hope you all are excited. As a result of the $NVDA earnings today, I am expecting to see a significant amount of bullish momentum and sentiment in the markets, providing us with an amazing opportunity not only to day trade and scalp but also the ability to realize gains by simply buying and holding strong equity positions. This is NOT the time to attempt to fight any of the strength in the markets and it is the time to simply ride the momentum and enjoy the process.
One thing I do want to warn everyone about at this point is attempting to allocate into $NVDA, not only at this price but with the current momentum that is going on. $NVDA, in my humble opinion, is extremely overvalued. We just watched as $NVDA rallied on earnings, and as a result, many traders are going to attempt to allocate into $NVDA right now, which is risky, yet many traders do not understand the risks that are involved with allocating here. I am not saying that $NVDA cannot continue to go up, as it really has been defying gravity over the previous year, but just understand that this is a game of Jenga, and once the bricks start to fall, it’s game over, and the only thing that will lose is your portfolio. So continue to enjoy the ride, but please, if you are attempting to allocate into $NVDA long at this point, be careful as there’s a chance that you get burnt. Just remember that between Q3 21 - Q3 22, $NVDA fell roughly 65% during that time. Conditions are obviously significantly different now, but with the underlying equity being so heavily overvalued, traders are going to have an extremely difficult time capitalizing on this movement with both confidence and safety.
Fun side note: if $NVDA hits $1100, assuming no movement in $AAPL, it will overtake the spot for the 2nd most valuable company, and at $1200 under the same conditions, $NVDA will overtake $MSFT as the most valuable company in the world!
Just make sure to tread extremely lightly on these market conditions and practice safe risk management. Today should be an amazing day for the markets, as everyone is overly excited about the $NVDA earnings. However, it will be extremely interesting to see how the markets continue to perform over the next couple of days after people start to come down from the high.
For my allocations today, I will be looking for opportunities to capitalize on this bullish momentum we’ve seen in the markets. The main organizations I will be watching today are all of the semis. I do not anticipate allocating into $NVDA, but I would like to see how $INTC and $AMD perform today as a result of $NVDA. This is not a direct play on the mover but a sympathy play, as the other semis should move in suit with $NVDA. Conditions are going to be interesting today, and it would be almost dumb not to attempt to take advantage of it. So look to be able to capitalize on these conditions with the least amount of risk possible.
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, $INTC, $TSLA, $RIVN, $GWAV, $BNED
LONG OPPORTUNITIES:
Long-Term Dividend - $GAIN / $JEPI
Long-Term Investment - $BA
Economic News for 05/23/2024
Building Permits - 8:30 AM
Initial Jobless Claims - 8:30 AM
S&P Global US Manufacturing PMI
4&8 Week Bill Auction - 11:30 AM
Fed’s Bostic Speaks - 3:00 PM
Notable Earnings for 05/23/2024
Pre-Market Earnings:
Ralph Lauren (RL)
Endava (DAVA)
BJ's Wholesale Club (BJ)
Medtronic (MDT)
TD Bank Group (TD)
Titan Machinery (TITN)
KE Holding (BEKE)
CSW Industrials (CSWI)
Atour Lifestyle (ATAT)
Bilibili (BILI)
After-Market Earnings:
Intuit (INTU)
Deckers Brands (DECK)
Ross Stores (ROST)
Maxeon Solar (MAXN)
Workday (WDAY)
Silvercorp Metals (SVM)
American Woodmark (AMWD)
Emeren Group (SOL)
StepStone Group (STEP)
Wrap up
This is going to be an awesome day to be a trader, so look to capitalize on the opportunities that are available to us, do not fight the trend, and look to realize as many gains as possible. Traders should have an amazing time attempting to allocate in these market conditions, so do what you can to maximize the opportunities that are presented to us, and let’s watch as $SPY rallies!
Good luck trading, and let’s see what $NVDA rips to!