HaiKhuu Daily Report - 07/25/2024
Good morning, and happy Thursday!
$SPY is looking gross during the pre-market session, so I hope that you all have been listening in and preparing accordingly as this bearish momentum in the market continues. We are seeing the first official signs of a reversal towards the downside as a bearish TK cross-under is forming on the daily chart. Bearish traders who listened to our warnings yesterday did phenomenally, traders who listened to hedge their portfolios have been doing great, and the traders sitting on the side, waiting for an opportunity to allocate, are happy as traders can start to allocate on this dip.
Life moves on, and so do the markets, so I hope that you all have been able to capitalize on the movement we’ve seen in the markets over the previous couple of trading days and are prepared accordingly for the next couple of weeks. This will be a fun time with opportunities consistently amongst us, now we see who’s fluid enough to remain solvent during this time, and can capitalize on this bearish movement with us!
Make sure to practice safe risk management and limit your downside risk, but let’s have some fun and do what we can to maximize our profit potential today!
Good luck trading, and let’s see where $SPY takes us today!
The updated $SPY daily levels are as follows:
Conversion Line Resistance: $552.72
Baseline Resistance: $552.72
Psychological Support: $540
Daily Cloud Support: $536.04
$SPY Daily Candles - [07/24/2024]
Thoughts & Comments from Yesterday - 07/24/2024
Yesterday was one of the worst days we’ve seen in the markets in almost two years, and it was easily predicted. I hope that you all prepared accordingly and are in a place where you were able to realize a significant amount of gains in the process with relative ease. Obviously, conditions could have been significantly worse, but we’ve needed a day like yesterday for a long time now. It is unfortunate to see the market conditions, but realistically, the movement we saw yesterday was significant but should not have been in any type of place to cause any significant harm or difficulty. Life moves on, conditions will get better and opportunities will be amongst us!
We started the day with $SPY looking disgusting, opening at $548.85, down significantly from the previous close of $553.78. Conditions were not great as we were below all levels of major support on $SPY and the selling momentum reassured that all of the way. We continually sold off throughout the day, continually making new lows in the process, killing traders who were expecting to catch a recovery and making bearish traders a significant amount of realized gains. $SPY continued to dive throughout the morning, only slowing down around $545 during the lunchtime lull, and continued to sell off towards the back half of the trading day.
Once $SPY started to sell off again, we continued to sell off slowly but surely into close, where we went on to make the official low of the day trading at $540.29, before recovering ever so slightly into close, ending the day trading at $541.23, down $12.55 for the day, or down 2.27%, with an intraday bearish movement of roughly $7.50. That was one of the largest movements we’ve seen in the markets in a while and has been by far the largest bearish movement we’ve seen since 2022. I hope that you all listened to our warnings yesterday, as we called out throughout the entire morning that the markets were going to continue to sell off; hopefully, you were able to capitalize on that sentiment and realize a significant amount of gains as a result. Regardless, though, life moves on, the markets move on, and we have a fun time in the process.
Hope that you all are ready for what is going to be another interesting and possibly scary day for the markets, and have prepared to navigate these conditions accordingly!
S&P 500 Heat Map - 7/24/2024
Thoughts & Comments for Today - 07/25/2024
Today is going to be a wild wild day for the markets. With a significant amount of economic news coming out during the pre-market session, it will be extremely hard to judge the markets during the time of writing this report, but I will do my best to give you the full rundown of what I am seeing.
With the state of the markets right now, we are seeing a significant amount of weakness come out, which is never a good sign, but at the same time, this is going to be one of those days where we are going to be able to find a dip in the markets and capitalize on it. The markets will bounce when it does bounce. The question really is, where do we find the bottom, and where will we have enough strength and confidence for us to be able to consistently realize gains in the process? I would not advise that anyone look to allocate into the markets at the moment, as people who are trying to short here are late to the party, but anyone who wants to go long is early to the party. There are a lot of inconsistencies in the markets at the moment that make it extremely hard to justify any allocations at this point. My best advice for the large majority of you is to attempt to scalp and day trade the small movements in the markets today, and if you are attempting to find a day trade or anything that has a longer timeframe, to please be careful, practice risk management, and have stops in place in the case that your position goes against you. This is not the time to take on a significant amount of risk in the markets, but this is the time that, realistically, we prepare to strike.
I think that this selling is going to be over soon, and institutions just want to scare out some traders here in the short term. Markets have been too strong, people have been paying too much of a premium to allocate, and these major financial institutions want to take advantage of that. Traders are going to either profit a bunch here or watch from the sidelines as others get absolutely slaughtered by not practicing safe risk management or over-allocating into higher-risk option plays.
If you do not have the confidence to allocate in these market conditions, do not worry because the confusion in the markets right now is what will ultimately attempt to kill a lot of traders. I am expecting to see a reversal soon, but I am expecting to see some continued bearish momentum in the markets until we bounce on the daily support levels. (Assuming we don’t absolutely rip during the pre-market economic news)
Just continue to tread lightly on these market conditions, though, as $SPY has displayed a bearish TK cross under on the daily, and $SPY has broken through many levels of major support. The next level of major support to look out for on $SPY is psychological support at $540 and the daily cloud at $537. In the case that we have broken through both of those levels, that will be a confirmation of a reversal, but here’s to hoping that the markets are able to bounce before then and that we are going to be able to capitalize on the upside potential afterward.
Let’s see where the markets take us from here and realize a significant amount of gains in the process!
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, $AMZN, $TSLA, $MSFT, $AAPL, $INTC, $CRWD
LONG OPPORTUNITIES:
Long-Term Dividend - $GAIN / $JEPI
Long-Term Investment - $INTC
Economic News for 07/25/2024 (ET):
PCE Prices - 8:30 AM
GDP - 8:30 AM
Jobless Claims - 8:30 AM
Durable Goods - 8:30 AM
Notable Earnings for 07/25/2024
Pre-Market Earnings:
American Airlines (AAL)
Hasbro (HAS)
AbbVie (ABBV)
Honeywell (HON)
Southwest (LUV)
RTX (RTX)
AstraZeneca (AZN)
Keurig-Dr Pepper (KDP)
Sanofi (SNY)
Dow Chemical (DOW)
Valero (VLO)
After-Market Earnings:
Sketchers (SKX)
Texas Roadhouse (TXRH)
Juniper Networks (JNPR)
Baker Hughes (BKR)
Digital Realty Trust (DLR)
Boston Beer Co (SAM)
L3Harris (LHX)
Norfolk Southern (NSC)
Edison International (EIX)
Principal Financial Group (PFG)
Wrap up
Hopefully, the markets will be able to recover and bounce here, but realistically, it all comes down to economic news and how the markets react to it. I would not advise anyone to take on a significant amount of risk or attempt to fight the momentum, but tread lightly on these market conditions and do what you can to take advantage of them. Please practice safe risk management, because these are the kinds of days that will make traders lose their portfolio. So use logic to allocate into the markets today, and remain solvent while the markets are irrational.
Good luck trading, and let’s see what kind of emotional torture $SPY will provide us today!