HaiKhuu Daily Report - 08/02/2024
Oh boy…. Good morning, and happy Friday! Market conditions are looking disgusting. Many US equities have fallen heavily, international markets are getting slaughtered, and traders are starting to panic.
Markets are not looking great, but I will say that opportunities will be amongst us. It is just a matter of remaining solvent while the markets are irrational. Do not be too aggressive, but look for opportunities to take advantage of these conditions. I think many traders are going to have a wonderful time, while others are unfortunately slaughtered in the process. It is just a part of nature and a part of trading.
We have broken back below both levels of major daily support and are actively testing the daily cloud. This is not a good sign, and people are starting to become fearful.
Please continue to tread extremely lightly and practice safe risk management when attempting to trade today. This is going to be an extremely interesting time for the markets. Let’s do what we can to take advantage of these market conditions and minimize losses while realizing some gains.
This is going to be an interesting day for the markets, so let’s see what happens.
Good luck trading today because we are going to need it…
The updated $SPY daily levels are as follows:
Conversion Line Resistance: $547.09
Baseline Resistance: $551.31
Psychological Support: $540
Daily Cloud Support: $539.55
$SPY Daily Candles - [08/01/2024]
Thoughts & Comments from Yesterday - 08/01/2024
Yesterday was one of the largest bearish days that we’ve seen in multiple years in the markets, only matched with the selling off of last week. The part that hurt the most about yesterday was that there were no gaps like what we saw last Wednesday, as the movement happened on an intraday basis versus during the pre-market session. It was genuinely a disgusting day that has set the markets back and has made us reach fear on the fear and greed index. Hopefully, you all were able to survive yesterday.
We started the day with markets looking great; $ SPY was testing the daily baseline resistance and was looking good. $SPY opened at $552.56, and we watched as $SPY slowly climbed up throughout the morning, going on to make the official high of the day trading at $554.85, but that was it once we hit the top, $SPY quickly started to sell off after the S&P Global Manufacturing PMI came out. That was the top, and the markets only continued to sell off from there.
$SPY quickly went from showing signs of strength and a reversal to instantly coming down and displaying significant weakness in the process. We continued to quickly sell off, showing only a tiny bit of support at $550, before smashing through that level with ease. The markets only continued to sell off throughout the rest of the morning, into the early afternoon, only to stop leading into powerhour as $SPY found some support trading at $540.
Leading into powerhour, $SPY did make the official low of the day, trading at $539.45, down significantly from the top, but thankfully recovered ever so slightly leading into close, where we officially ended the day with $SPY trading at $543, down $7.80 for the day, or down approximately 1.4%.
This was by far the largest intraday range we’ve seen in the markets in over two years, and conditions are continuing to display general weakness. I hope that you all were able to survive yesterday and are ready for what should be another extremely interesting day today. A lot is about to happen, so let’s see where the markets take us and try to make the most out of these conditions!
S&P 500 Heat Map - 08/01/2024
Thoughts & Comments for Today - 08/02/2024
Today is going to be a tough day to navigate. I cannot lie to you about this; it is going to be a very difficult day to navigate, and many traders are going to be in a state of mind that is not clear as a result of these market conditions. Please, this is a warning to everyone who is attempting to trade today so please be rational and level-headed. If you are overly emotional now or are in the mindset to be overly aggressive to attempt to make losses generated back, this is not the day to attempt to force any positions because the markets WILL humble you. It is just a matter of how humble you will be after the fact.
Please just tread lightly on these market conditions but look to take advantage of the situation. Realistically, the markets can easily continue to fall, which is not surprising at all in any way, shape, or form, but it is part of the reason why we have to be realistic with these conditions. We do need to see a reversal in the markets and pop as these conditions are oversold, but just because we “need” to see it does not mean it will happen. Please continue to tread extremely lightly on these market conditions and make some smart decisions when it comes to making allocations in the markets.
There are a couple of plays that I am really into today. The biggest play I am interested in is selling a bunch of 0-DTE CSPs on $INTC. Intel fell heavily as a result of earnings yesterday and is a buy that I am extremely interested in right now, but the only issue I have at the moment is the fact that we are displaying short-term weaknesses that we cannot account for. I would not allocate yet if you are waiting to enter into $INTC, but if you are already in $INTC, this is not a bad time to add, double or average in. I think that $INTC is still an amazing organization, but it is just going through a lot of short-term issues, with operations being a laggard among the other semiconductor organizations. I would proceed with caution if you are attempting to capitalize on $INTC, but the opportunities are amongst us.
I know many people are scared at the moment when it comes to attempting to trade organizations like $INTC, and from a fundamental standpoint, they are not wrong at all. But it comes down to the fact that we need to remain liquid and solvent during this time. Make smart decisions, practice safe risk management, and allocate accordingly when you have the confidence to do so.
As I said before, the markets can continue to come down, but I just have to say this: we are due for a bounce here in the short term. Will it happen today? Will it happen next week? Who knows. There are no good answers to when the markets will ultimately start moving, but regardless, please just continue to tread lightly and practice safe risk management in these conditions. But, $INTC is going to be a lot of fun.
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, $NVDA, $AMD, $TSLA, $AAPL, $MSFT, $AMZN
LONG OPPORTUNITIES:
Long-Term Dividend - $GAIN / $JEPI
Long-Term Investment - $INTC
Economic News for 08/02/2024 (ET):
Unemployment Rate - 8:30 AM
Unemployment Data - 8:30 AM
Durable Goods - 10:00 AM
Factory Orders - 10:00 AM
Notable Earnings for 08/02/2024
Pre-Market Earnings:
Exxon Mobil (XOM)
Chevron (CVX)
Sundial Growers (SNDL)
Magna International (MGA)
Enbridge (ENB)
LyondellBasell Industries (LYB)
Cboe Global Markets (CBOE)
Wrap up
This is going to be a tough day for the overall markets. Let’s see where $SPY goes and what the markets ultimately do for us. There are many opportunities to trade, but even more to get burnt. Please make sure to practice safe risk management and do what you can to limit your downside risk. The worry right now should not be to make as much as possible but more so to just make sure you are limiting your downside risk as much as possible. This will be an interesting day, so please protect your bottom line. Let’s see where the markets take us today and go from there.
Good luck trading, and let’s see how we end this week.