HaiKhuu Daily Report - 07/24/2024
Good morning, and happy Wednesday!!! Markets are looking disgusting right now as $SPY is testing $550 while writing this report, but I hope you all are ready and excited for what is going to be an interesting time for the markets. $SPY has dropped during the pre-market session is back below the daily baseline support, and is displaying weakness as it is testing the psychological support levels.
This is going to be an interesting time as $SPY is either going to correct or look absolutely beautiful. There is absolutely no in-between, and it is just a matter of which direction that we ultimately take. There are more signs that we are coming down than recovering and moving back up, but I would rather be optimistic and hope that the markets move up, but I have to be realistic about the current situation.
Please practice safe risk management, but look to take advantage of the short-term momentum and opportunities available in these market conditions to protect your bottom line. The next couple of trading days might get a little bit bumpy, so prepare accordingly.
Good luck trading, and let’s see where $SPY takes us at $550!
The updated $SPY daily levels are as follows:
Conversion Line Resistance: $556.53
Baseline Resistance: $556.53
Psychological Support/Resistance: $550
Daily Cloud Support: $531.50
$SPY Daily Candles - [07/23/2024]
Thoughts & Comments from Yesterday - 07/23/2024
Yesterday was a mixed bag of reactions. Many traders were having a great time, but others had significant difficulty remaining consistent in the process. The difficulty shows that the performance of the markets was sporadic. We had some organizations do phenomenally, while other organizations took a back seat and got shot in the process. Hopefully, you all did alright, but situationally, things can always be better.
We started the day with $SPY opening at $554.56. Conditions were looking good despite opening relatively black for the day as $SPY moved up almost instantly in the morning, only to start to get resistance around the $556 level. We watched as $SPY dropped quickly in the morning before rallying back up to $556.73, making the official high of the day leading into lunch, but as the volume dropped, that’s where the difficulty really started. $SPY started to show weakness, and after displaying some weakness, we got extremely neutral market conditions that made it very difficult to navigate with confidence.
The afternoon was filled with neutrality. The price consolidated around the previous close price of $554.65 and remained within an extremely tight and choppy range. Conditions could have been better, but they could also have gotten significantly worse, as we dropped slightly into close, making the official low of the day trading at $553.28, before bouncing back up slightly, ending the day officially trading at $553.78. Conditions were not great at all in any way, shape, or form, but they provided us with some amazing opportunities to trade and realize a significant amount of gains.
I hope that you all had fun trading with us yesterday and realized significant gains in the process. Many traders had a phenomenal time, while the majority of traders had some difficulties. However, life moves on, and so do the markets! Let’s see what happens today and prepare accordingly.
S&P 500 Heat Map - 7/23/2024
Thoughts & Comments for Today - 07/24/2024
Today, in my opinion, is going to be a tougher day for the majority of traders. With $SPY displaying weakness and megacaps coming down, I would be extremely careful and cautious in these market conditions, because we can really start to see a free-fall in the general markets. I do not want to be the boy who cries wolf, but it is my job to remain as neutral and unbiased as possible. With the way the markets look right now, we either can bounce beautifully, or we can see a significant amount of weakness in the markets, making it extremely difficult and inconsistent to attempt to trade or realize any sort of significant gains at this time.
The biggest thing that I will continue to talk about, and started talking about a couple of weeks ago, is practicing safe risk management. This is too late to start to hedge positions in my honest opinion, but is now started to get to the point where I would consider getting some bearish positions in the markets. I don’t expect you all to take on a significant amount of bearish exposure, nor do I recommend going extremely deep, but this is one of those times where, situationally, if you are able to capitalize on the bearish momentum in the markets, even if it is short term, as a result of the weakness in the markets, I think that this is a good time.
Please just make sure that you are also following the market momentum. If we look like we are continuing to dump, there is NO reason at all why you should feel the need to try and catch the bottom, but at the same time, if the markets decide to rip and rally from here, there is no reason to be pessimistic and try to catch the top and short. The biggest thing, in my personal opinion, that you need to look out for is to make sure you are not trading during choppy consolidation periods and only allocate once you have the personal confidence not only to trade but also have the ability to be sure that the position you are in has the volume and volatility necessary to trade with confidence.
One position that I do believe will do well throughout the rest of the week, is selling CSPs on $TSLA. I would tread lightly on this play and practice safe risk management if you decide to take it, but I believe that if you sell some 2DTE CSPs, you should have no problem at all realizing gains as a result of the movement we’ve seen in the markets. Realistically, it is going to be difficult to realize a significant amount of gains with this play unless you are looking to take on a significant amount of risk. Please make sure to practice safe risk management, and if you do not understand the concept of selling CSPs, that is not a problem, just don’t partake in this play, and we will find another great opportunity for you to capitalize on!
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, $TSLA, $DIS, $GOOGL, $NVDA, $CRWD, $AAPL,$MSFT
LONG OPPORTUNITIES:
Long-Term Dividend - $GAIN / $JEPI
Long-Term Investment - $INTC
Economic News for 07/24/2024 (ET):
Goods Trade Balance - 8:30 AM
Retail Inventories - 8:30 AM
S&P Global PMI Data - 9:45 AM
New Home Sales - 10:00 AM
Fed’s Logan & Bowman Speak - 4:05 PM
Notable Earnings for 07/24/2024
Pre-Market Earnings:
AT&T (T)
Vertiv (VRT)
NextEra Energy (NEE)
Amphenol (APH)
Thermo Fisher Scientific (TMO)
Boston Scientific (BSX)
General Dynamics (GD)
CME Group (CME)
Fiserv (FI)
International Paper (IP)
GE Vernova (GEV)
After-Market Earnings:
Chipotle (CMG)
Ford (F)
ServiceNow (NOW)
International Business Machines (IBM)
Whirlpool (WHR)
O'Reilly Automotive (ORLY)
Quantum Scape (QS)
WM (WM)
KLA (KLAC)
United Rentals (URI)
Wrap up
Hopefully, the markets will be able to recover today, but with the signs I see during the pre-market session, please practice safe risk management, limit your downside risk, and do what you can to maximize your profit potential. Do not fight this momentum. Consider getting some bearish allocations, and as always, have a great time. Look into selling those $TSLA CSPs and do what you can to navigate these conditions accordingly. I’ll be sporadically trading throughout today, so let’s have some fun and realize some gains!
Good luck trading, and let’s see where the markets take us today!