HaiKhuu Daily Report 07/12/2024
Good morning, and happy Friday! Hope you all are doing well, and have survived another day! Markets have been extremely strong, but we’ve seen better days. Markets slipped slightly yesterday, but the fall was not bad, and I hope you all were able to come out of yesterday unscathed. I would equate the fall that we’ve seen yesterday to slipping down the final step on the stairs, where you kinda forgot there was one more step, so it took you by surprise, but you end up being totally fine.
But I think that yesterday was a real warning for all of us that the markets can, and will be getting significantly worst, but it is just a matter of being able to predict and prepare for when that ultimately happens. Please tread lightly and practice safe risk management today, but look for opportunities to capitalize on this dip. Buy the dip, and watch as the markets treat you to a nice steak dinner this weekend.
Let’s end this week strong, we’ve continued to make new all-time highs, and let’s see where the markets take us today!
Good luck trading, and make sure to practice safe risk management today!
Thoughts & Comments from Yesterday, 07/11/2024
Yesterday was a disgusting day for the markets, with the majority of stocks pushing nicely, but the megacaps absolutely decimating the markets. Conditions were great and optimistic, but trading was extremely difficult for the overall markets.
We started the day with market conditions looking great, opening at $561.45, and moving up to make the official high of the day, and all time high trading at $562.32. Conditions were looking beautiful as we were coming up to test the pre-market highs, before ultimately starting to come down, and reversing roughly a half hour into the trading day.
At roughly 10AM EST, the markets reversed from the top, and afterwards it was game over. A slight reversal would have been acceptable, but with the conditions of the markets, coming down heavily going into the lunchtime lull, smelled terribly, making trading extremely inconsistent and difficult, leading into one of the larger sell offs that we’ve seen recently.
Selling only expedited going into the lunchtime session, going on to make new lows of the day continually dropping, and being extremely inconsistent in the afternoon.
We went on to make the official low of the day trading at $555.83, before continually chopping around until market close, where we were able to move up ever so slightly, to end the day trading at $556.48. Down −$4.84 or down roughly 0.86%.
$SPY dropped roughly $6.50 from the high to the low. I hope you all were able to capitalize on the opportunities that were presented to us, and listened to the warnings to tread lightly, and practice safe risk management, because I can tell you for certain, that many traders felt the heat of yesterday, with $SPY only dropping just 1% in the process. The interesting thing, is that the majority of the heat, came from all of the mega caps, as roughly 70% of stocks were green, but the blood was shed from semiconductors, mega caps, and worst of all, $TSLA.
Let’s see where the markets take us today, and go from there!
Heatmap - $SPY 07/11/2024
Thoughts & Comments for Today, 07/12/2024
Today is genuinely going to be a toss up for the direction we ultimately go. With the way that they markets looked yesterday, I wouldn’t be too optimistic, as we do have economic news coming out during the pre-market session, and traders are going to be fearful, but one thing I will say to look out for, is a nice bullish movement in the markets. With the way the markets are looking at the moment, there has been weakness in the megas, but this has been necessary. I do believe we came down too quickly though without any major justification, where you should get many great opportunities today to buy a dip, and ride the reversal.
There is no reason why market conditions should remain less than optimal, despite the strength in the markets. Now it is just a matter of is the selling over? If not, how far can we drop down, and how much can we recover in a short period of time. Please continue to tread lightly, and just remember that days like yesterday are the reason why we practice safe risk management.
I am not saying that we’ve topped out the markets, because we have not, we can easily continue to run, but what I am saying is that yesterday is just a teaser for what the markets can realistically do, and is the entire reason why I’ve been warning traders about limiting risk, hedging their portfolios, and not taking on too much risk.
If you are attempting to trade, please stick to trading equities for the time being, mostly with the current state of the markets. Conditions can, and will get worst with time, so overleveraging yourself may increase your profit potential in the short term, but realistically, can and will be the your demise. Be smart with your allocations and protect your bottom line.
With the markets moving down leading into today, one thing that I would highly advise you all to look into, is allocating into 0-DTE CSPs. It has been a while since I have recommended this, but with the state of the markets, you should be able to sell 0-DTE CSPs on the mega caps that have fallen yesterday and be able to realize gains with relative ease. Just make sure that you are limiting your general exposure, and doing what you can to sell an OTM strike, with little to no assignment risk, to realize some money to enjoy this weekend. You won’t make any life changing money, but free and consistent money, is free and consistent money. Look into an opportunity to sell OTM CSPs on $INTC, $AAPL, and $MSFT. Or, if you wanna take on some risk, sell a CSP on either $TSLA or $NVDA. Just please, be smart with your positions and understand possible assignment risk!
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, $INTC, $AAPL, $MSFT, $TSLA, $NVDA, Bitcoin
LONG OPPORTUNITIES:
Long-Term Dividend - $GAIN / $JEPI
Long-Term Investment - $BA
Economic News for 07/12/2024 (ET):
Producer Price Index (PPI) - 8:30 AM
UMich Inflation Expectations - 10:00 AM
UMich Consumer Sentiment - 10:00 AM
Notable Earnings for 07/12/2024
Pre-Market Earnings:
JPMorgan Chase (JPM)
Wells Fargo (WFC)
Citigroup (C)
Bank of New York Mellon (BK)
Fastenal (FAST)
Ericsson (ERIC)
Wrap up
Hopefully, markets move up from here, but please make sure to tread lightly and practice safe risk management. Take advantage of the opportunities that are available to us, and look to sell some CSPs and collect some easy realized gains to enjoy this weekend. This is gonna be a fun and interesting day for the markets, so let’s see what happens!
Good luck trading, and let’s end this week strong!