HaiKhuu Daily Report - 07/16/2024
Good morning, and happy Tuesday!
Markets are looking neutral at the time of writing this report, and I hope you all are excited about these market conditions. We watched as $SPY ripped to a NEW all-time high yesterday, and conditions are remaining strong for the overall markets, but please tread lightly as many traders are still confused about how they want to allocate. We are seeing overall market strength, but with people not allocating at the rate necessary to maintain this level in the markets, I would advise you all to continue to practice safe risk management and limit downside risk.
Conditions can remain strong, and I hope that they do, but as I have been warned over the previous weeks, this bullish run is starting to slow down as people are not as comfortable and confident allocating at these highs compared to purchasing this time last year.
Take advantage of the strength in these market conditions while the confidence is here, but continue to tread lightly. The second this beautiful symphony comes to an end, everyone and their moms will be rushing for the doors.
Good luck trading, and let’s see a NEW all-time high on $SPY!
The updated $SPY daily levels are as follows:
Conversion Line Support: $554.24
Baseline Support: $548.44
Psychological Support: $560
Daily Cloud Support: $521.82
$SPY Daily Candles - [07/15/2024]
Thoughts & Comments from Yesterday - 07/15/2024
Yesterday was an extremely interesting day for the markets. $SPY made a new all-time high and sold off afterward, making trading phenomenal before ultimately making trading conditions tougher. We watched as confusion and conflicting sentiment throughout the day made the movement difficult to time a reversal but phenomenal if you were following the general market momentum.
We started the day with $SPY opening at $561.97. Conditions were looking great as traders were optimistic and extremely excited to trade. We watched as $SPY continued to rally throughout the morning, going on to make the official high of the day, trading at $564.82, up beautifully from opening and making the official all-time high in the process.
After making the high, conditions were great, and traders were optimistic. Unfortunately, the markets did not respect the level and ultimately started to reverse. As the selling started, conditions became tougher to navigate, but that is why we’ve talked about directional moves in the markets.
Selling continued throughout the lunchtime session as $SPY continued to come down, and traders who continued to attempt to buy the dip ultimately had a difficult time realizing gains. Thankfully, we did watch as after we bottomed out, trading right above $560, there was a slight bullish movement into the markets leading into close.
During powerhour, $SPY retained the $562 level until the final 25 minutes of the day, when it quickly dropped and made the official low of the day, trading at $559.64, before pushing back up slightly into close. It ended the day trading at $561.53, up $1.54 from Friday's close and down less than $0.50 throughout the entire trading day.
It was a very difficult day to capitalize on if you attempted to catch a reversal, but if you simply just watched the market momentum and followed the trend, you should have had zero issues with either going long at open, or going short at the top. The only issue is whether we were able to remain solvent enough to capitalize on the opportunities that were available in these market conditions. Markets are still beautiful, but the beauty is what kills traders. Let’s see what the markets have in store for us today and make the most out of these conditions!
S&P 500 Heat Map - 7/15/2024
Thoughts & Comments for Today, 07/16/2024
Today is going to be a tough day to gauge the sentiment during the pre-market session. Markets are neutral at the time of writing this report, but there is a significant amount of financial earnings that are coming out that will impact both market performance and sentiment. We have seen many financials moving up as a result of people anticipating earnings, but just because organizations have moved up does not mean that this is what will happen in real-time. Most people who will be reading this or listening to it during the pre-market session will already know what has happened, but at the time of writing this report, it is something that is going to genuinely be a toss-up that will make gauging sentiment extremely difficult.
But, what I will say is there is a lot of confusion and hesitation in the markets that will make trading not only difficult, but sentiment is extremely conflicted right now. The large majority of traders are on the sidelines, deploying cash in short-term positions, but not many people are allocating here at the top with confidence. There are going to be outliers that make trading better or worse, but overall, it is going to be extremely difficult to remain consistent in these conditions unless you have a proven strategy that works on an extremely short-term basis.
If you are attempting to trade here in the short term, I would highly advise you to look for higher beta stocks that have both momentum and volatility and either ride the momentum or scalp the volatility. There is going to be no good, consistent way for you to realize gains in the short term unless you are able to catch a movement. Find something that has legs, and run with the play. It’s that simple. Don’t attempt to play something that does not have momentum; do not look to play something that is not favorable. Find a good play with potential, and simply run with it. It is safer, it is more consistent, and there is less stress getting into a play that is guaranteed a win.
One thing that I will continue to advise though, is limiting that downside risk. If you are actively attempting to trade, setting stops below major support levels is a great way to limit that risk, and then once you are in profit, setting a stop at either break even/guaranteed profit and securing a zero-risk play is one of the best ways to retain exposure with little to no risk. Risk-free trades and exposure are going to be the best way to secure wins consistently and have little to no risk involved.
Just continue to realize gains in these market conditions and do what you can to maximize your profit potential. This should be a lot of fun trading today, and I’ll do what I can to find us the most opportunities 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, $INTC, $AAPL, $MSFT, $NVDA, $TSLA, $RIVN
LONG OPPORTUNITIES:
Long-Term Dividend - $GAIN / $JEPI
Long-Term Investment - $INTC
Economic News for 07/16/2024 (ET):
Retail sales - 8:30 AM
Import/Export Price Index - 8:30 AM
Business Inventories - 10:00 AM
NAHB Housing Market Index - 10:00 AM
Fed’s Kugler Speaks - 2:45 PM
Notable Earnings for 07/16/2024
Pre-Market Earnings:
Bank of America (BAC)
UnitedHealth (UNH)
Progressive (PGR)
Morgan Stanley (MS)
Charles Schwab (SCHW)
PNC Financial (PNC)
State Street (State Street)
After-Market Earnings:
Interactive Brokers (IBKR)
JB Hunt Transport Services (JBHT)
Hancock Whitney (HWC)
Wrap up
Hopefully, we will see a new all-time high on $SPY and realize a significant amount of gains in the process. Please make sure to tread lightly and practice safe risk management, but do not be too passive. Consider holding more cash mostly during these market conditions, and do what you can to maximize your profit potential. Many traders are going to have a lot of fun and realize gains, while others get absolutely slaughtered and realize losses. So be smart, be safe, and have a great time in the process!
Good luck trading, and let’s see what $SPY has in store for us!