HaiKhuu Daily Report - 07/31/2024
Good morning, and happy Wednesday! I hope you all are ready for FOMC and Jerome Powell today! Markets are looking confused but looking amazing during the pre-market session. $SPY is up roughly 1% at the time of writing this report, $AMD is up almost 10%, and $MSFT recovered the large majority of the losses that were incurred. Traders are going to have many phenomenal opportunities presented to us today, so please continue to tread lightly on these market conditions, but please look to take advantage of opportunities in the process. I think this is going to be a lot of fun, so please just continue to tread lightly on these conditions, but do what you can to have an amazing time in the process!
Be careful when attempting to trade today, and just make sure to follow the general market momentum. Many traders are going to have a difficult time, and many others are going to be attempting to trade around the clock, so just tread lightly, mostly around 2 pm EST, as that is FOMC, and Jerome Powell will be speaking at 2:30 pm EST. Do not fight any trends, don’t pretend to be a magician, and don’t pretend that you are the only person who understands the markets while we are seeing irrational movements in the markets. This will slaughter traders throughout the day, so protect yourself from yourself, as you will be the one who dictates your success trading today.
This is going to be an extremely fun and volatile day.
Good luck trading, and let’s see what Jerome Powell has ready for us!
The updated $SPY daily levels are as follows:
Conversion Line Resistance: $548.49
Baseline Resistance: $551.31
Psychological Support: $540
Daily Cloud Support: $517.61
$SPY Daily Candles - [07/30/2024]
Thoughts & Comments from Yesterday - 07/30/2024
Yesterday was a genuinely tough day for the overall markets, with significant weakness across the board, consistent bearish momentum, and many difficult trading opportunities. With the strength in the markets, opportunities were amongst us, but it was just more a matter of remaining solvent throughout the trading day!
We started the day with $SPY opening at $546.20, up nicely from the previous close, and watched as $SPY rallied up from opening to quickly make the official high of the day, trading at $547.34. Conditions were not the best at the top and quickly got worse as $SPY started to sell off throughout the rest of the morning. $SPY continued to make new lows of the day throughout the entire morning through the lunchtime lull, only finally reversing after $SPY hit $540, broke below the support, and made the official low of the week trading at $538.52, down significantly from the top.
Thankfully, we were able to have an almost perfect alert on the reversal on $SPY, signaling an entry as $SPY broke back above $540 and watched as $SPY rallied roughly $4, leading into close. We made a relative high trading right above $543 leading into close until $SPY quickly snapped back and sold off into close. We ended the day with $SPY trading at $542.00, down $2.76 for the day, or down roughly 0.5%. It was a nasty day for the markets, but thankfully we had some interesting opportunities presented to us with markets getting crazy. Regardless, life moves on, and opportunities will consistently be presented to us. With $SPY looking wonderful during the pre-market session, I hope you all are ready for what is going to be an extremely fun day!
S&P 500 Heat Map - 07/30/2024
Thoughts & Comments for Today - 07/31/2024
Today is going to be an interesting day for the markets, as the FOMC is impacting them heavily. If you are attempting to trade, please tread extremely lightly and practice safe risk management. Due to our underlying confusion, traders are going to have a lot of difficulty attempting to trade and allocate into the markets today. Thankfully, the markets were up during the pre-market session, which is a sign of confidence.
The biggest concern at the moment is solvency. Many traders are going to have an extremely difficult time allocating in the markets as a result of the current market conditions, and people who are allocating heavily are taking on a significant amount of risk that they realistically may not understand that they are putting themselves into. With many newer traders joining our community recently, this is one of those days that if you do not completely understand how to navigate or trade the markets, that you should not force yourself to trade, as you will be taking on a significant amount of risk.
But if history repeats itself, I would highly advise you to attempt to follow the general market momentum today. With the bullish movement we’ve seen during the pre-market session, I would highly advise that you all look to let the momentum continue to ride as conditions are strong in the markets, and then once we see momentum start to slow down around the first hour of the day, to then look for an opportunity to short. This is obviously not financial advice, nor is it a signal to blindly follow this, but assuming that history repeats itself, we should see a bearish movement leading into the lunchtime session, where you can look for an opportunity to buy the dip and go long, leading into FOMC. I would never advise anyone to blindly allocate in anticipation of FOMC, which is happening again today at 2 pm EST, but I would highly suggest that the large majority of traders simply do not trade around that time. We will see some highly irrational moves in the markets, and we will see a lot of difficulty when it comes to actively trading and allocating in the markets. What happens after FOMC and Jerome Powell? Who knows. That is genuinely a toss-up that no one realistically knows what will happen and will bring the most amount of inconsistencies to the markets. This is going to be either an amazing time or a terrible time for individuals in the markets as you will either be able to capitalize on the movement heavily or we are about to see a significant amount of bearish momentum that negatively impacts the majority of traders. There is going to be realistically no great way to navigate today, and at the end of the day, the only ones who are consistently winning are the market makers and major institutions.
Please just be extremely careful if you attempt to trade today. Make sure to practice safe risk management and do what you can to maximize your profit potential. Protect your bottom line, and follow the market momentum. There are zero reasons why you should attempt to fight the trend, but at the same time, this is one of those scenarios where, realistically, many traders will wipe out their accounts attempting to either “short the top” or “catch a falling knife.” Just continue to be smart, safe, and rational while the markets are acting irrationally.
If I see any opportunities, or 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, $AMD, $MSFT, $NVDA, $TSLA, $AAPL, $META
LONG OPPORTUNITIES:
Long-Term Dividend - $GAIN / $JEPI
Long-Term Investment - $INTC
Economic News for 07/31/2024 (ET):
ADP Nonfarm Employment Change - 8:15 AM
Employment Data QoQ - 8:30 AM
Chicago PMI - 9:45 AM
Pending Home Sales - 10:00 AM
FOMC Interest Rate Decision - 2:00 PM
Fed Chairman Powell’s FOMC Speech & QnA - 2:30 PM
Notable Earnings for 07/31/2024
Pre-Market Earnings:
Boeing (BA)
Norweigan Cruise Lines (NCLH)
Kraft Heinz (KHC)
Altria (MO)
Teva Pharmaceuticals (TEVA)
Humana (HUM)
Mastercard (MA)
Generac (GNRC)
Automatic Data Processing (ADP)
T-Mobile (TMUS)
After-Market Earnings:
Meta Platforms (META)
Arm Holdings (ARM)
Qualcomm (QCOM)
Carvana (CVNA)
Lam Research (LRCX)
Western Digital (WDC)
Riot Blockchain (RIOT)
MGM Resorts (MGM)
eBay (EBAY)
Allstate (ALL)
Wrap up
This is going to be a wild day for the overall markets as a result of FOMC and Jerome Powell speaking today. Conditions are looking great during the pre-market session, but what happens right now versus what happens at close are two different stories. Tread lightly, practice safe risk management, and do what you can do to maximize your profit potential. Do not fight this trend, and make some smart decisions in the process. I think this is going to be a lot of fun today, so let’s have a great time and realize some gains!
Good luck trading, and we will see where the markets take us today!