HaiKhuu Daily Report - 07/26/2024
Good morning, and happy Friday! I hope you all are excited and prepared for what is going to be an exciting day for the markets! We have significant economic news coming out during the pre-market session, so please tread extremely lightly, but with the way the markets have moved up during the pre-market session, I would love to see some beautiful bullish momentum as a result of strong economic numbers. Obviously, I don’t know what is going to happen until those numbers come out, so here is to our magic crystal ball praying that it’s right again. We will see what happens.
If you are attempting to trade today, look to follow the general market momentum and do what you can to maximize your profit potential. I think that there are going to be some great opportunities to trade, it is just a matter of being able to capitalize on those opportunities when you can, and realizing a significant amount of gains with us in the process.
Let’s have a lot of fun trading today, and I hope you all have a wonderful weekend!
Good luck trading, and let’s end this week strong!
The updated $SPY daily levels are as follows:
Conversion Line Resistance: $551.31
Baseline Resistance: $551.31
Psychological Support/Resistance: $540
Daily Cloud Support: $517.61
$SPY Daily Candles - [07/25/2024]
Thoughts & Comments from Yesterday - 07/25/2024
Yesterday was a gross day for the overall markets. $SPY made a new low coming down to test the daily cloud support, bounced up beautifully, and came back down leading into the close. It was an easy day to trade if you followed the market momentum, and it was even easier if you listened to us talk about the movement in the markets! Many traders in the community did wonderfully yesterday, and I hope you all were able to realize gains with ease!
We started the day with $SPY trading at $541.32. Conditions really were not the best as we opened relatively black on the day from the previous close, and dropped right away to make the official low of the day trading at $537.45. Conditions were not great at this time, but we watched as $SPY quickly rallied from the low of the day into the lunchtime lull and continued to push until the early afternoon, where $SPY went on to make the official high of the day trading at $547.45. Conditions at the top were prospectively good, but realistically, it was not a significant movement up in any way, shape, or form.
During the early afternoon, though, we started to watch as $SPY reversed from the top and continued to downtrend throughout the rest of the afternoon. We found some support around the open price, as $SPY did bounce back up during the beginning of powerhour, but ultimately was met with some bearish momentum as $SPY quickly sold off after bouncing up, selling into close where we ended the day trading at $538.41, down $2.82 for the day, or down 0.52%. The movement down was not bad as half a percent drop is not too significant, the only issue is that $SPY remained under the $540 support level, making it difficult to allocate into the markets with confidence.
Hopefully, you all were able to realize a significant amount of gains while attempting to trade yesterday, I know that some people were able to perfectly follow our trades and alerts yesterday, so congratulations to everyone who realized gains on the perfect alerts sent out yesterday!
S&P 500 Heat Map - 7/25/2024
Thoughts & Comments for Today - 07/26/2024
Today is going to be a rather interesting day for the markets. With the way that everything sits right now, I would advise you all to be cautious leading into the day but take your guard down when economic news comes out, assuming conditions are great and markets are strong. It is one of those days that sentiment is genuinely going to be a toss-up. With the way the markets sit at the time of writing this report, we are looking good, but it is now just a matter of whether we are going to be able to maintain that level of confidence throughout the day. If markets move up on strong economic news, expect to see a beautiful bullish movement in the markets. We’ve sold off over the previous couple of days, but realistically, the movement we’ve seen is not too significant. $SPY has dropped roughly 5% in the past two weeks, which is never a great time, but a minor 5% correction is not really too significant at all in any way, shape, or form. We need to see a bounce in the markets, but it is just a matter of when will it happen?
If you are attempting to trade today, I still believe that following the momentum from the sentiment during the pre-market session is going to be the best way to trade until there is a confirmation of a reversal or a shift in the market momentum. Do not attempt to fight this trend, and do what you can to maximize your profit potential. There is no reason why you should be taking on a significant amount of risk in these conditions or increasing your loss potential. Make some smart allocations, buy positions you have confidence in, and do what you can to maximize your profits.
Many traders have had a tough time over the previous couple of trading days as a result of this movement and momentum in the markets. While I feel bad that people are incurring losses, I will say that I don’t feel sympathy for the individuals who have taken on a significant amount of risk trying to fight the momentum in the markets and have been burnt in the process. I am sorry that the markets have not been favorable to some of you, but just know that if you are feeling a significant amount of heat in your portfolio after just a couple of bearish days in the markets, know that you are taking on way too much heat and that you should adjust your trading style to either limit your downside risk, or size down your positions to limit the amount of general exposure that you are taking on.
There will be a lot of confusion and volatility in the markets today, so do what you can to take advantage of the increase in volatility. I think that we will see many opportunities presented to us, and I think that option sellers will have an amazing time realizing gains, mostly at open today. If you understand selling premium, I would highly advise that you look into selling 0-DTE CSPs on positions that you are confident have hit a relative bottom. Some organizations are going to be better than others to sell premium against, but some of the plays you should look into right now are $AMD, $TSLA, and $INTC. AMD and Tesla are going to be a little bit higher risk, but if you are able to sell some OTM CSPs, assuming the markets do not absolutely tank today, you should be able to realize some nice and consistent gains in the process, with little to no effort necessary. Just attempt to sell those contracts around open and close them out within the first hour for 40-60% gains. Don’t get greedy. Take your free steak and move 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, $INTC, $AMD, $TSLA, $NVDA, $GOOGL, $META
LONG OPPORTUNITIES:
Long-Term Dividend - $GAIN / $JEPI
Long-Term Investment - $INTC
Economic News for 07/26/2024 (ET):
PCE Price Index - 8:30 AM
Personal Income & Spending - 8:30 AM
UMich Inflation Expectations & Consumer Sentiment - 10:00 AM
Notable Earnings for 07/26/2024
Pre-Market Earnings:
Bristol-Myers Squib (BMY)
Charter Communications (CHTR)
3M (MMM)
Booz Allen Hamilton (BAH)
Centene (CNC)
AON (AON)
Franklin Resources (BEN)
Colgate-Palmolive (CL)
Wrap up
Hopefully, we will watch as the markets ultimately rip and rally today and provide us with a significant amount of confidence and bullish momentum. This can obviously change throughout the day, so make sure to follow the market momentum and do what you can do to maximize your profit potential and limit your downside risk. I think, regardless, we are going to have a lot of fun while attempting to trade today, so let’s realize some gains via CSPs, scalp, and day trade throughout the day and just have an amazing time in the process!
Good luck trading, and let’s see where $SPY ends up this week!