HaiKhuu Daily Trading Report

Good morning, and happy Monday! Wow, the weekend has FLOWN by, and I hope you all are excited and prepared for another week for the markets! $SPY is up beautifully during the pre-market session while I am writing this report, and I hope you all are ready for today. There is a significant amount of strength going into today as a result of Biden announcing that he is dropping out of the election. This is extremely impactful for the markets and is going to provide us with an amazing opportunity to capitalize on strong conditions. Please continue to tread lightly on these market conditions as $SPY is still displaying weakness, but overall is extremely strong. Look to maximize the opportunities that are presented to us, and do what you can to maximize your profit potential.

This week, there will be many major earnings and economic news, so please prepare accordingly and tread lightly!

Here are the events to watch out for this week:

Monday
- Earnings: Verizon (Pre-market)
Tuesday
- News: Existing Home Sales ( 10 AM EST)
- Earnings:
  - UPS, Spotify, General Electric, Coca-Cola (Pre-market)
  - Tesla, Google, Visa (After-Hours)
Wednesday
- News: Retail Inventories / New Home Sales
- Earnings:
  - AT&T, Thermo Fischer Scientific, General Dynamic (Pre-market)
  - Chipotle, Ford, IBM, Quantum Scape (After-Hours)
Thursday
- News: PCE, GPD, Jobless Claims, Durable Goods (8:30 am EST)
- Earnings:
  - American Airlines, Southwest, RTX, Dow Chemical (Pre-market)
  - Texas Roadhouse, Boston Beer, L3 Harris, Edison International (After-Hours)
Friday
- News: PCE Price Index / Personal Spending (8:30 am ECT)

If you want to read ALL of the news events for this week, click HERE!

This is going to be a fun week trading, so let’s have a great time, and as always, practice safe risk management!

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

The updated $SPY daily levels are as follows:
Conversion Line Resistance: $556.53
Baseline Resistance: $552.38
Psychological Resistance: $550
Daily Cloud Support: $526.42

Thoughts & Comments from Last Week

Last week was a rough week for the markets as there was a significant amount of bearish momentum coming from all of the mega-cap organizations, dropping significantly in a short period of time. Many organizations were bloody red despite some organizations doing exceptionally well. Hopefully, you all have been listening to our warnings to protect your bottom line and practice safe risk management!

We started the week with $SPY opening at $562.22. Conditions were looking alright on Monday, but remained relatively neutral, slowly moving up and making the official all-time high on Tuesday, trading at $565.16, and were looking beautiful, but this is where things start to become more rough. Markets were looking good until Wednesday. On Wednesday, $AVGO had earnings during the pre-market session and absolutely got slaughtered during that process, dropping heavily and negatively impacting other semiconductors. We watched as organizations like $AMD and $NVDA got slaughtered in the process, which negatively impacted every other mega-cap organization and was the beginning of the end for the markets.

After the gap down on Wednesday, we watched as $SPY dropped heavily on Thursday, breaking below the daily conversion line support, and watched as the selling continued on Friday, where $SPY broke all of the major levels of daily support. $SPY made the official low of the week, trading at $547.91, meaning it dropped almost $18 from the top and slaughtered MANY traders in the process. This is what I’ve been warning you all about, as a minor sell-off in the markets really is not too significant, but depending on the risk, you are taking in the markets is the key to your longevity. $SPY officially ended the week trading at $548.99, down only $13.23 through the entire week, or down 2.35%, which realistically is not much at all, but many traders, unfortunately, got wiped out by not practicing safe risk management in the process. Life moves on if you unfortunately had a tough time, but again, this is why you practice safe risk management. If you allocated $100,000 into $SPY, you would have lost roughly $2,500 total, but if you allocated $5,000 into $SPY calls that went against you, you would have lost $5,000. Just something to consider in these market conditions.

S&P 500 Heat Map - 7/19/2024

Thoughts & Comments for Today - 07/22/2024

Today is genuinely going to be a toss-up for the overall markets. With the way the markets are looking, there are multiple conflicting sentiments, so please be extremely careful. Many traders are optimistic, which is a great sign but should also be a point of concern. The markets have taken a little bit of a dive over the previous couple of trading days, meaning that realistically, we do need to see a bounce in the markets, but realistically, we have also broken below both levels of support, meaning that we can see a significant amount of bearish momentum in an extremely short period of time.

Please tread lightly because the markets, when they rip, will be beautiful and extremely optimistic in that same period of time, but at the same time, there is so much difficulty now that $SPY has broken below daily support that we are going to have a tough time breaking back above all of those resistance levels. As I have said before, we are due for a bounce in the markets, but it is just a matter of whether we are able to retain that level, mostly in a short period of time. Markets are either going to be phenomenal, or we will watch as traders continually get chopped around and have a difficult time.

The biggest suggestion I have at this point is to make sure that you are practicing safe risk management. Many traders are going to have a difficult time actively trading right now while everyone is confused. Many traders are going to get chopped out in both directions. Practicing safe risk management and following general market momentum is going to be an amazing opportunity to realize gains with little to no risk. It obviously is a lot easier to say than do though, but just know it will be a lot easier to ride the momentum in the markets, regardless of direction, than attempting to call either the top or the bottom.

If the pre-market momentum lasts in these conditions, look for an opportunity to buy an organization that is heavily undervalued and ride the momentum up. As bad as this sounds, I believe that semis, despite being still heavily overvalued, have come down significantly over the previous week, where once they start to reverse, it will be an amazing opportunity to allocate and go long. A couple of organizations I personally would advise an allocation into would be $INTC, $AMD, and $NVDA.

As always, though, please make sure to practice safe risk management. Many traders in our community are going to continue to have a difficult time over the next couple of weeks unless they are able to either follow the general market momentum or get extremely lucky with an allocation.

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, $AMD, $INTC, $AAPL, $MSFT, $META, $AMZN

LONG OPPORTUNITIES:

Long-Term Dividend - $GAIN / $JEPI
Long-Term Investment - $INTC

Economic News for 07/22/2024 (ET):

Chicago Fed National Activity - 8:30 AM
3&6 Month Bill Auction - 11:30 AM
VP & Democratic Nominee Harris Speaks - 11:30 AM

Notable Earnings for 07/22/2024

Pre-Market Earnings:

Verizon Communications (VZ)
Truist Financial (TFC)
IQVIA Holdings (IQV)
Kaspi (KSPI)

After-Market Earnings:

Cleveland-Cliffs (CLF)
Nucor (NUE)
SAP SE (SAP)
NXP Semiconductors (NXPI)
Crown Holdings (CCK)
Cadence Design Systems (CDNS)
Brown & Brown (BRO)
Logitech (LOGI)
W.R. Berkley (WRB)
Alexandria Real Estate (ARE)

Wrap up

Hopefully, market conditions become more favorable for us as we watch the markets bounce back and reverse beautifully, but at the same time, we all know realistically that the markets are irrational right now. Just remember that $SPY is relatively strong but showing weakness in the short term. Make sure to practice safe risk management and do what you can to maximize your profit potential. Hopefully, we see a bounce in the markets soon, and if we are not able to bounce, just understand that the markets will continue to be in a bearish state until we see a sign of reversal. Tread lightly this week, and let’s have some fun!

Good luck trading, and let’s see if $SPY is able to recover the losses of last week!

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HaiKhuu Daily Report - 07/22/2024