HaiKhuu Daily Trading Report

Good morning and happy Thursday! I hope you are all ready for what is going to be an extremely confusing and tough time to gauge. Please look out for opportunities to buy the dip, but protect your bottom line and practice safe risk management. $SPY is up at the time of writing this report, but markets are in a state of confusion at the moment as a result of the heavy bearish move we’ve seen across the board.

This has been one of the largest single day bearish movements we’ve seen in a while, and as I warned about last week, in the case of certain death, it will be quick and unexpected. $SPY is currently trading at the daily conversion line support, so expect to see either a dip in the markets, or watch as we bounce off of support, and rip to new all-time highs as market conditions remain strong. So please protect your bottom line, prepare accordingly, and watch out for opportunities to capitalize on this momentum. Prepare to sell CSPs tomorrow to attempt to capitalize on these market conditions, and hope that we see a recovery soon.

Let’s see what happens today, and good luck trading, we are going to need it in these conditions!

The updated $SPY daily levels are as follows:
Conversion Line Support: $558.14
Baseline Support: $548.61
Psychological Support: $550
Daily Cloud Support: $522.92

Thoughts & Comments from Yesterday - 07/17/2024

Yesterday was one of the more disgusting days for the overall markets with $SPY displaying significant weakness across the board, being lead by semiconductors diving. Conditions were not ideal in anyway shape or form, but realistically, this has been something we have discussed would have enevitably happened. Conditions were tough, and the only got systematically worst throughout the day. Hopefully no one was slaughtered yesterday, but that yesterday was the entire reason I’ve been warning people to hedge their portfolios and practice safe risk management.

We started the day with $SPY trading at $558.89, down significantly from the previous close of $565.86. Conditions were not looking great at all, but buying the dip at open proved favorable, as $SPY did rally to make the official high of the day trading at $560.61, before reversing and continuing the bearish momentum. That was the only great trading opportunity throughout the day, unless you were attempting to play the bearish momentum.

Markets continued to slowly bleed throughout the rest of the day, which honestly is one of the worst feelings as a trader, because opportunities were relatively amongst us, but it was more so a matter of being able to actively capitalize on the market momentum. Conditions were not great as we were slowly bleeding in the process, contining to make new lows of the day. It was not favorable, it was not forgivable, and traders continued to get burnt through slow and choppy market conditions.

We continued to dive going into close, where we ended the day officially trading at $556.94, down $7.92 for the day, or down 1.4% with an intraday bearish movement of roughly $2. There was no great opportunities to trade, but it did give us an opportunity to speculate and go long in the markets, which was a great time, and honestly something that was a gamble that I think was worth the risk. Hopefully, we see the markets bounce here and we see a beautiful buy the dip opportunity, but it is just a matter of if the markets decide to recover today, IE; What will the mega-caps ultimately do.

S&P 500 Heat Map - 7/17/2024

Thoughts & Comments for Today - 07/18/2024

Today is going to either be an amazing day for the markets, are we are about to see continued death across the board. With the way the markets are trending at the moment, we are about to either see a beautiful recovery or a disgusting sell off. There is no inbetween which is the unfortunate part about the markets. We might continually chop in consolidation until we see an actual movement in the markets, which is going to be genuinely the worst case scenerio as traders are hoping to see a breakout, but only continually seeing losses as the markets ultimately don’t move. Please, practice safe risk management, limit your downside risk, and protect your bottom line today. Many traders are going to get absolutely ***SLAUGHTERED*** if the markets ultimately do not decide to move. So please be smart, and protect yourself.

I do want to put some weight to what I just said though, the reality of these market conditions, with these mega caps coming down, we will genuinely either see a beautiful recovery or ultimate selling here over the next couple of days. Do I know which direction we are going, or what the markets are about to do? Genuinely zero clue, but I would rather be optimistic than pessimistic, but I at the same time we also have to be realistic. Look to capitalize on the strength in the markets, as $SPY and the overall markets are still extremely strong, but it is just a matter of we are starting to see signs of weakness coming from the shadows. $SPY has broken below the daily conversion line support, and will be testing it. Either we break out, and continue to look strong, or we see some short term bearish momentum that ultimately scares many traders out of the markets. This is a fair warning that if you’ve not hedged your positions, its not the most ideal time to hedge right now, but hedging late is better than never hedging.

Please just be careful, that is genuinely the one worry I have about you all right now. Many traders don’t understand the amount of risks that are involved in these market conditions. I personally am holding the majority of my portfolio in cash waiting for a dip buying opportunity, and we are starting to see signs that the dip is dipping.

This is the time though to have a great time, and try to capitalize on this dip. Traders are going to have an amazing time, it is just a matter if YOU are able to capitalize on this momentum in the markets, while practicing safe risk management. Take advantage of this dump in the markets, and buy this dip. It should be a great time, just do what you can to maximize the opportunities that are presented to you.

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 07/18/2024 (ET):

Jobless Claims - 8:30 AM
Philly Fed Manufacturing Index - 8:30 AM
Leading Index MoM - 8:30 AM
Fed’s Goolsbee Speaks - 10:00 AM
Fed’s Logan Speaks - 1:45 PM

Notable Earnings for 07/18/2024

Pre-Market Earnings:

D.R. Horton (DHI)
Abbott (ABT)
Domino’s (DPZ)
Blackstone (BX)
Infosys (INFY)
M&T Bank (MTB)
KeyCorp (KEY)
Marsh & McLennan (MMC)
Textron (TXT)
ManpowerGroup (MAN)

After-Market Earnings:

Netflix (NFLX)
Intuitive Surgical (ISRG)
PPG Industries (PPG)

Wrap up

Hopefully, we will see a beautiful buying-the-dip opportunity today where the markets react beautifully, but it will be interesting to see how $SPY reacts to the daily conversion line support. Please make sure to practice safe risk management, limit your downside risk, and capitalize on the possible bounce we can see in the markets. This is going to be a tough day to navigate, but let’s do our best to have a great time. Many traders are going to realize gains, while others realize losses, so tread lightly and have some fun!

Good luck trading, and let’s see where $SPY takes us today!

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HaiKhuu Daily Report - 07/18/2024