HaiKhuu Daily Report 06/10/2024
Good morning, and happy Monday! I hope you traders all had a wonderful weekend and are ready for what is going to be a fun week! For some reason, NVDA is down 90%???
This is obviously a joke, as $NVDA has fully completed its 10:1 stock split! This is going to increase active trading volume significantly, and I will talk about this later in the report. For now, please continue to tread extremely lightly on these market conditions, but look to take advantage of any opportunity and realize gains wherever possible.
For now, prepare accordingly for this week. We have many major economic events happening, including FOMC this Wednesday. There is an extremely high likelihood that we will see increased volatility as a result of this, so make sure to practice safe risk management and prepare accordingly. On top of this, we also have CPI on Wednesday, PPI on Thursday, and the U Mich inflation expectation on Friday.
Conditions are going to be extremely difficult to navigate this week, so let’s have some fun and realize some gains in the process!
Good luck trading, and let’s have an amazing week!
The updated $SPY daily levels are as follows:
Conversion Line Support: $527.63
Baseline Support: $518.22
Psychological Support: $500
Daily Cloud Resistance: $509.09
$SPY Daily Candles - [06/07/2024]
Thoughts & Comments from Last Week
Last week, we saw new all-time highs, beautiful bullish momentum, and extremely consistent opportunities. With strength and optimism in the markets, we all could have easily realized significant gains; it was just a matter of seizing the opportunities that were presented to us and getting a little bit lucky on your timing. I hope you all had a lot of fun in the process of trading last week and enjoyed your realized gains!
We started the week with relative strength as $SPY was looking strong, opening the week trading at $529.11. Conditions were strong, but we watched as we continually dipped on Monday, making the official low of the week trading at $522.60. In hindsight, this was an extreme drop in the markets where $SPY broke below the daily conversion line, but thankfully, $SPY did recover roughly $5 intraday. After recovering extremely nicely, we watched as, for the remainder of the week, $SPY continued to inch up.
Tuesday was a rather uneventful day, but we did remain optimistic about the underlying market conditions as $SPY moved up. During the back half of the trading week, we watched as $SPY continued to push new all-time highs.
Wednesday was a BEAUTIFUL day for the markets. With continued bullish momentum positively impacting the markets, many organizations ran in sympathy to $NVDA. Despite market conditions being conflicting for many traders, anyone who was holding a strong equity position should have had a phenomenal time.
Thursday was relatively uneventful, but we did make another all-time high on $SPY. Friday was where the fun happened.
On Friday, $GME moved up significantly as Roaring Kitty hosted his first stream in three years, and it rallied to trade above $60 during the pre-market session. Conditions were amazing, but unfortunately, the organization announced that it was selling more equity, negatively impacting the underlying equity. $SPY made an all-time high, and traders had an amazing time. I will say that markets were rougher on Monday, but despite this, opportunities were amongst us.
We started Friday with $SPY opening up down from the previous close, opening at $533.70, but moving up nicely and extremely consistently throughout the morning, making the first relative high leading into lunch, but unfortunately dropping down early as volume dropped heavily, leading into lunch. Everyone’s eyes were on Roaring Kitty as he showed up roughly a half hour late and was joking and meme-ing the entire time. $GME dropped heavily as a result, and many, MANY people, unfortunately, got burnt as a result. Unlike $GME, $SPY did recover nicely from its drop, going on to rally after the lunchtime lull, making the official high of the day, high of the week, and ALL-time high trading at $536.89. Conditions did slow down leading into close, though, where $SPY officially ended the week trading at $534.01, down 0.12% for the day on Friday and up almost 1% throughout the entire week.
There was a significant amount of volatility in the markets that we all could have very easily capitalized on, but it is just a matter of being able to remain extremely consistent in the process. Many traders were able to have an amazing time, and realize some wonderful gains. So, I hope you all had a wonderful time last week and are ready for what should be an amazing time this week!!!
Heatmap - $SPY 06/07/2024
Thoughts & Comments for Today, 06/10/2024
Today is shaping up to be another extremely interesting day for the markets. With the way the markets are shaping up during the pre-market session, I believe that we are starting to see some signs of exhaustion. I would not be surprised if market conditions continue to display short-term exhaustion and we start to come down, but I just want to remind everyone that despite this short-term exhaustion, markets are extremely strong, and we are testing all-time highs.
I feel that the majority of the sentiment that will be derived in the markets today, all come from the underlying sentiment with $NVDA. At the time of writing this report, underlying equity is relatively neutral, which makes it tougher to write about, but it at least is still a possibility. The $NVDA stock split has done nothing to change the organization, it is more so an accounting trick to attempt to change the underlying psychology towards the pricing of their equity. For those who don’t know what a stock split is, think about a pizza. You cannot afford the $8 to buy an entire pizza, so what does the pizza shop do? They slice it up into 8 equal parts and sell you a slice for $1. The underlying cost for the amount of pizza you purchased is the exact same. You are paying $1 a slice, but what happens is that the barrier of entry is significantly lower and provides us with an opportunity to enjoy some pizza. That is what just happened to $NVDA. Now, the question I have at this point is how this is going to play out. Now that $NVDA shares are trading just north of $100 a share, will there be enough demand with the lower barrier of entry to fight against the individuals who’ve purchased this equity with the anticipation of holding it through the split, as well as the people who are looking to take profit.
Realistically, if we see an inkling of green, I believe that people will start to purchase more and more equity, resulting in us possibly seeing a new all-time high on $NVDA, but at the same time, if we see an inkling of red, that is when you have to start to get worried as the ball starts rolling, and the selling snowball beings. I do believe that $NVDA is heavily overpriced, and as a result, I do want the equity to come down, but it is just a matter of remaining solvent while the underlying equity is in a state of confusion.
Just note that I do, again, want to see $NVDA equity come down, but I do believe that in the case of a rapid sell-off, we will see their shares oversold, thus resulting in an amazing dip buying opportunity that we all can capitalize on. If you are trying to catch this dip, please be slow and cautious with attempting to purchase $NVDA long. I believe that this is going to be an amazing opportunity, but it is just a matter of not knowing if this drop is going to happen and, if it happens, when it will reverse. So, if you are like me and are waiting to enter into $NVDA on a dip buying opportunity, wait until there is a sign of a reversal on a larger timeframe, and allocate accordingly only when you are confident doing so.
For my allocations today, I will say that again, I am going to attempt to allocate whenever possible, but I honestly have been enjoying remaining more passively in the back, helping out where I can, and consistently finding opportunities that are presented to us. I will be attempting to scalp when given an opportunity to do so; it is just a matter of remaining consistent in these market conditions and getting a lot of work done in the process. Thank you all for being understanding at this time, and I hope you all are excited about the improvements we are pushing to the community!!!
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, $GME, $RIVN, $TSLA, $MSFT, $AAPL
LONG OPPORTUNITIES:
Long-Term Dividend - $GAIN / $JEPI
Long-Term Investment - $BA
Economic News for 06/10/2024
CB Employment Index - 10:00 AM
NY Fed Inflation Expectations - 11:00 AM
3&6 Month Bill Auction - 11:30 AM
Notable Earnings for 06/10/2024
Pre-Market Earnings:
FuelCell Energy (FCEL)
After-Market Earnings:
Yext (YEXT)
Skillsoft (SKIL)
Calavo Growers (CVGW)
Wrap up
Hopefully, market conditions do remain favorable, but this is a reminder that I am not seeing weakness in the markets, but just some short term exhaustion. There is economic news that is coming out over the next couple of trading days, and as a result, I am expecting to see increased volatility and opportunities being presented to us. Please continue to tread lightly but look to capitalize on the strength in the markets. Opportunities are going to be amongst us, it is just a matter of seizing the opportunities you are confident in, and maximizing the amount of gains you are able to generate. This is going to be a fun time, so let’s have an amazing week and realize a significant amount of gains!
Good luck trading and what the markets do this week!