HaiKhuu Daily Trading Report

Good morning, and happy Friday! It’s the last trading day of the month, and markets are going to be extremely volatile and confusing today. I hope you all are ready as this is going to be an interesting time. Tread lightly as market conditions are starting to display short-term weakness that could easily grow to a much larger market sell-off. Make sure to take advantage of opportunities that are presented to you, but practice safe risk management and protect your bottom line because if $SPY breaks below $520 as a result of semiconductors dropping, we could start to see some extremely disgusting conditions.

I will say that the light at the end of the tunnel is close, though. This is looking like a buy-the-dip opportunity, but the only question is, where is the bottom, and where do we buy this dip?

Proceed into these market conditions with caution, but look out for opportunities to scale into this dip when the opportunities are presented to you, and protect your bottom line

Good luck trading, and let’s end this month strong!

The updated $SPY daily levels are as follows:
Conversion Line Support: $527.20
Baseline Support: $515.28
Psychological Support: $500
Daily Cloud Support: $507.95

Thoughts & Comments from Yesterday, 05/30/2024

Yesterday was a tough day to trade and was an even worse day for the overall markets. $MSFT and $NVDA lead the overall bearish momentum, and many SaaS organizations dove as a result of $CRM diving on earnings. It was an extremely difficult day where many organizations were nicely green, but due to many of the major organizations diving the overall markets were red. There were opportunities to realize gains in the process, but traders were presented with inconsistent opportunities to trade. Hopefully, you all were able to realize gains, but it’s tough as many people were not able to do it consistently.

We started the day with $SPY, opening the day trading at $524.48, down slightly from the previous close, and watched as market conditions from the get-go were relatively tough. Within the first hour of the day, we watched as $SPY continued to slowly sell off before starting to reverse before the lunchtime lull. We made a relative bottom trading at $523 and watched as $SPY moved back up after lunch to go on and make the official high of the day trading at $525.19. Conditions were not ideal in any way, shape, or form, but thankfully, we were able to see that conditions were slightly better during the beginning of the afternoon.

Market conditions started to become rougher in the back half of the afternoon. Markets never went green for the day, and the selling momentum started to pick up right before 2 p.m. EST. Conditions were not great, but $SPY quickly started to sell off as many major tech organizations started to downtrend. Before we knew it, we were continually making new lows of the day until ten minutes before close, when we made the official low of the day with $SPY trading at $521.33.

$SPY ended the day recovering slightly, ending the day trading at $522.61, down $3.50 for the day, or down roughly 0.66%. It was a genuinely disgusting day for the markets as we watched as $SPY remained inconsistent throughout the entire day, only to lose $2 overall. Hopefully, you all were able to come out of yesterday relatively unscathed, and were able to enjoy the momentum in the markets.

Conditions are going to be tough ending this month, but let’s remain optimistic, and do what we can to maximize our profit potential.

Thoughts & Comments for Today, 05/31/2024

Today is genuinely going to be an extreme toss-up on the direction the markets are going to go, and honestly, your prediction on this movement is as valid as my personal sentiment. Anything can happen, we can go in any direction or worst case scenario, we continue to chop leading into the weekend, confusing everyone in the process. Please tread extremely lightly on these market conditions and do what you can to maximize the amount of realized gains that you are able to generate today.

As bad as it sounds, markets are going to go up, come down, or remain neutral and choppy. That is my prediction for the day.

Let me elaborate, though. With the way the markets currently sit, we are due for an extremely large directional move, but it is just a matter of which direction we ultimately end up going. $SPY is displaying a significant amount of weakness right now. We have already broken through the first level of major support on the daily chart, and we are continuing to display general weakness at the moment. In the case that $SPY is able to sell off a little bit more and break below the $520 psychological support, the next level of major technical support is at $515. This would not be an ideal scenario, but it is just a part of being in the markets and the underlying risks that are involved. This is an extremely realistic sentiment as $NVDA and $MSFT have been diving over the previous couple of days, and if that selling continues, there genuinely could be no end, as both organizations, in my honest opinion, are heavily overpriced at the current evaluations.

To bring up the good side, this dip does need to be bought back up. We have filled the gap on the daily, and are providing traders with a significant amount of confidence to allocate in the short term. If markets continue to display a level of confidence and purchasing happens here, we could see a large inflow of traders allocating into the markets, providing us with both the volume and confidence necessary to recover quickly. If the inflow is heavy, leading into the $NVDA stock split, we could very easily see a new all-time high on both $SPY and $NVDA. This is not an option that I personally would attempt to beat heavily on, but is something that would not surprise me to happen.

The final, and honestly worst-case scenario for me, is the idea that market conditions remain relatively neutral, and we continue to chop around. Over the previous couple of trading weeks, we have seen extremely neutral market conditions and a significant amount of chop. If that happens again today, many traders are going to have an unfortunate and difficult time attempting to trade and will be losing money consistently. If you are a market maker, that is exactly what you are looking for, but as retail traders in the space, this is honestly the worst-case scenario, as there are no good opportunities to realize any type of gains, but you can consistently lose with ease. So, hopefully, we do see a larger directional move in the markets today.

For my allocations, I anticipate being busy again today, so I will not be making as many allocations as usual. However, one position I am extremely interested in getting into is selling a 0-DTE CSP on $DELL. The organization has been on a tear recently, and despite having amazing earnings results, they are down $35 from open yesterday. No offense to the individuals who are going to be looking to purchase these contracts after open, but they are paying a significant premium for those said contracts. Purchasing those contracts now is going to be irrationally expensive and dumb to attempt to get into, as the large movement has already happened. Take advantage of the dumb money in the markets and have a great feast as a result. Those contracts can pay for a nice steak dinner; just look to cut and take profit ASAP when given an opportunity to do so. If you get into those CSPs, target an exit of over 50% of the collected premium or leave within the first hour of the trading day, whichever comes first.

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, $ULTA, $DELL, $NVDA, $MSFT, $CRM, $TSLA, $RIVN

LONG OPPORTUNITIES:

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

Economic News for 05/31/2024

PCE Price Index - 8:30 AM
Personal Income & Spending - 8:30 AM
Chicago PMI - 9:45 AM

Notable Earnings for 05/31/2024

Pre-Market Earnings:

BRP Inc (DOOO)

Wrap up

Hopefully, this is a better day for the markets with a larger directional move that we can capitalize on. Traders are going to have an irrationally difficult time capitalizing on the markets if conditions remain choppy. Look out for an opportunity to realize gains with $DELL 0-DTE CSPs, and just have an amazing time in the process. This is the last day of the month, so let’s end this month strong!

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

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HaiKhuu Daily Report 05/31/2024