HaiKhuu Daily Report - 08/07/2024
Good morning, and happy Wednesday! I hope you are ready for another day of BULLISH CONFUSION because the markets are looking great during the pre-market session, and opportunities seem amongst us! Market conditions are looking for a sign of a reversal after a minor drawdown, and I hope you all are ready and excited to see what happens over the next couple of trading days. There is going to be a lot of underlying confusion as a result of the placement we are seeing in the markets right now, but at the same time, that is just a part of being in the markets and, realistically, is going to be something that we will have difficulties navigating here in the short term. In reality, the markets can continue to come down, but just because they can does not mean that they will. We do need to see a bounce in the general markets in the near future; it is just more a matter of being able to remain solvent while the markets are acting irrationally.
The best advice I can give everyone at this time is to simply follow the market momentum and trend if you are attempting to trade. $SPY is showing signs of recovery from the bottom, so there is zero reason why we should attempt to fight this trend. But if the markets start displaying weakness, either flatten your position or reverse the allocation.
Do not speculate without confidence, and do not do anything that would jeopardize your account. Make sure to practice safe risk management at this time, mostly as many traders are unfortunately going to get wiped out in these market conditions.
Let’s have some fun. Good luck trading today!
The updated $SPY daily levels are as follows:
Conversion Line Resistance: $532.57
Baseline Resistance: $537.71
Psychological Support: $520
Daily Cloud Resistance: $522.07
$SPY Daily Candles - [08/06/2024]
Thoughts & Comments from Yesterday - 08/06/2024
Yesterday was a confusing yet oddly beautiful day for the markets. We saw a beautiful recovery in the general markets before watching as $SPY rejected major technical support levels. Opportunities were amongst us to trade, and many traders in our community did phenomenally yesterday. Hopefully, you all were able to take advantage of the strength in the markets and realize gains in the process with us!
We started the day yesterday with $SPY opening at $519.42, up slightly from the previous close but down from the pre-market high. Markets continued to remain relatively neutral until roughly 15 minutes into the morning when $SPY quickly rallied up. The strong bullish momentum continued throughout the day, watching $SPY break through resistance after resistance, only coming down slightly during the lunchtime lull and continuing to rally throughout the afternoon.
The afternoon was not extremely eventful, but we watched as $SPY continued to rally throughout the afternoon. It went on to make the official high of the day, trading at $529.75 and looked extremely strong at the top. Unfortunately, $SPY was not able to retain the high, rejecting at $530 and coming down for the rest of the day.
During power hour, we only saw slight bearish momentum in the markets as $SPY did continually tumble in the process with no great opportunities to attempt to capitalize on the bullish momentum or show any signs of a recovery, and we only continued to drop, leading into close, where we ended the day officially with $SPY trading at $522.03, up $4.77 from the previous close, or up roughly 0.9% in the process. The interesting thing about where $SPY closed is it was literally right below the daily cloud resistance, watching as technical analysis continued to play it’s part in the markets, but thankfully, it was a beautiful day that provided traders with an amazing opportunity to realize gains after one of the worst selling days we’ve seen in multiple years.
As I always say, life moves on, and so do the markets, so let’s see what the markets have in store for us today and make the most out of these current market conditions!
S&P 500 Heat Map - 08/06/2024
Thoughts & Comments for Today - 08/07/2024
Today is setting up to an extremely interesting day for the markets. $SPY is moving up nicely during the pre-market session, and I think there is a high likelihood that we can see a breakout in the general markets. I am not certain that we will be able to retain this level, but I know with confidence that traders out there are going to be able to realize a significant amount of gains in a short period of time while attempting to trade today. As I said before, my advice still stands. Please tread lightly in these market conditions and practice risk management, and if you are attempting to allocate into the markets right now, simply follow the trend. If markets are looking strong, go long until the market starts to display a sign of momentum slowing down and a sign of reversal, then exit your position until there is that confirmation of a reversal, and the same goes for the inverse direction.
One of the many things you have to think about and remember in these market conditions is to make sure that you are remaining fluid with your allocations and making sure that you are not deadset on any specific direction. In the case that markets look strong, go long. In the case that the markets look weak, go short. It’s that simple: don’t be hyper-fixated on being right that you only want to go long because you will miss out on quick opportunities to short, and the same goes again for the inverse direction.
Fluidity in the markets provides short-term solvency because the market sentiment always shifts, and once there is a shift, you are able to realize the shift is happening in real-time, allowing you the ability to take off a position that you were holding and allowing you to adjust your position, providing you an opportunity to capitalize on the other direction.
If you are attempting to trade in these conditions, do not be afraid to be more aggressive and take on more exposure, but if you are attempting to do that, just again, make sure to practice safe risk management. This is not the worst time to take on some general market exposure, but the amount of risk that is in the current market conditions as a result of the placement we are seeing in the markets is wild. Just know that at any time, the markets can realistically come down, but with the strength and momentum in the markets right now, it would be almost dumb not to attempt to take advantage of these conditions.
Be smart and be safe, but genuinely do what you can to maximize your profit potential. Semis are looking amazing during the pre-market session at the time of writing this report, so simply just follow the momentum 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, $DIS, $INTC, $NVDA, $AMD, $TSLA, $RIVN, $AAPL
LONG OPPORTUNITIES:
Long-Term Dividend - $GAIN / $JEPI
Long-Term Investment - $INTC
Economic News for 08/07/2024 (ET):
MBA Mortgage Data - 7:00 AM
Fed’s Collins Speaks - 12:00 PM
10-Year Note Auction - 1:00 PM
Consumer Credit - 3:00 PM
Notable Earnings for 08/07/2024
Pre-Market Earnings:
Shopify (SHOP)
Walt Disney (DIS)
Novo Nordisk (NVO)
CVS Health (CVS)
Global Payments (GPN)
Aurora Cannabis (ACB)
Emerson Electric (EMR)
Sony Group Corporation (SONY)
Lyft (LYFT)
ODP Corporation (ODP)
After-Market Earnings:
Robinhood Markets (HOOD)
Magnite (MGNI)
AppLovin Corporation (APP)
HubSpot (HUBS)
Duolingo (DUOL)
SolarEdge Technologies (SEDG)
Aspen Aerogels (ASPN)
Occidental Petroleum (OXY)
Warner Bros Discovery (WBD)
Equinix (EQIX)
Wrap up
This should be a fun day for the markets. Take advantage of this opportunity to maximize your profit potential and minimize your risk. Market sentiment is strong during the pre-market session, so let's see if that strength is able to sustain itself throughout the rest of the day and watch as the markets break out from here. This should be a beautiful day for the markets, so let’s realize some gains and have an amazing time!
Good luck trading, and let’s see where $SPY takes us today!