HaiKhuu Daily Report - 08/08/2024
Good morning, and happy Thursday! Man, this week has been FLYING by, and I hope you are ready for what is going to be another day of general confusion, panic, and fear! Market conditions are not looking the best at the time of writing this report, as $SPY is down slightly from the previous close. We are back in extreme fear on the fear and greed index, and I am seeing a lot of traders being uneasy after the day we had yesterday. I hope that you all are ready and prepared for what should be an extremely interesting day for the markets, but it is just a matter of whether your portfolio is prepared for what is to come. Anything can genuinely happen today. We might reject the cloud once again, we might break out on economic news during the pre-market session, or we might break back below $500 and have a terrible time in the process. Anything is genuinely possible; now it is just a matter of navigating these conditions and being confident in your ability to do so.
My advice? Just continue to practice safe risk management and simply follow the trend. If there were people listening to me yesterday about simply following the trend, you should have had a phenomenal time when $SPY was showing signs of a reversal from then top. Just continue to tread lightly and try to make the most out of these confusing times. Many traders are going to experience significant losses in case the markets continue to come down, and this is a fair warning that we can easily continue to come down with ease. Let’s see what the markets have in store for us today and do what we can to maximize our profits!
Good luck trading, and let’s see if $SPY sells off today!
The updated $SPY daily levels are as follows:
Conversion Line Resistance: $532.57
Baseline Resistance: $537.71
Psychological Support: $500
Psychological Resistance: $520
Daily Cloud Support/Resistance: $522.07
$SPY Daily Candles - [08/07/2024]
Thoughts & Comments from Yesterday - 08/07/2024
Yesterday WAS a beautiful day for the markets, with $SPY opening up nicely, giving traders confidence in the market conditions, only to be let down once again. Market conditions got tougher to navigate, and before we knew it, conditions got worse and worse as market conditions came down. These market conditions unfortunately faked out many traders, but life moves on, and opportunities will present themselves again.
We started the day with $SPY opening at $528.58, up nicely from the previous close of $522.15, and conditions were looking extremely strong. Traders were optimistic as $SPY moved up, and we watched as $SPY quickly went on to make the official high of the day, trading at $531.59, up beautifully and providing traders with an opportunity to be confident in a recovery in the markets. $SPY was trading in the daily cloud, and everyone was optimistic.
Conditions remained relatively neutral until the lunchtime session, and as volume started to slip, so did the markets. $SPY quickly started to sell off slowly, providing traders with a little skepticism, but the initial selling was not anything concerning. Just a low volume sell during lunch, but as traders started to come back from their lunch break, that is when things started to get worse and worse. We watched as $SPY dropped to make new lows, only to continue to make new lows throughout the afternoon, losing all of the gains that were generated throughout the pre-market session and then some.
Markets did quickly pop slightly during power hour, almost going black for the day, but we went on to make the official low of the day, trading at $518.06, before officially closing the day with $SPY trading at $518.66, down $3.50 for the day, or down 0.67%. It was honestly a very disgusting day for the markets, but that is just a part of the markets. It was disgusting to see how bearish the markets were despite traders being optimistic across the board.
Hopefully, the markets will be able to recover soon because if not, and we reject this cloud on the daily, that is going to be an official sign of reversal in the markets and a signal of a bearish trend forming. Let’s see where the markets go from here and navigate accordingly!
S&P 500 Heat Map - 08/07/2024
Thoughts & Comments for Today - 08/08/2024
Today is going to be one confusing day for the markets. With the markets in a state of confusion and major economic news coming out during the pre-market session. We should prepare for anything to happen. Markets are weak here in the short term, but on a larger timeframe, market conditions are still extremely strong. This is not the time to be dead set on allocating into either direction, but more so looking at being able to capitalize regardless of market conditions.
The biggest thing to prepare for is to know which direction the markets are ultimately picking. For the previous couple of months, we have been continually bullish, and this has been quite the pullback from the markets, providing traders with either confidence in allocating into the markets at a highly discounted price or this is a fake load-up zone to get more people to allocate into the markets before dropping back off. Genuinely, no one knows where the markets are ultimately going, but I will say that a lot of smart money is allocating into safer positions at the moment, with one notable investment being Warren Buffet, owning more T-Bills than the Federal Reserve.
I am not saying that Buffet being safer is not out of the ordinary, but instead of deploying capital at the moment, he is selling off positions and is doing what he can to essentially get risk-free money. Obviously, he is not going to take on any major risk by purchasing T-Bills, outside of the idea that the US government is about to blow up and they are not able to pay back the debts being incurred, but realistically, that possibility is not a reality we should consider. But this is just something to think about, if the smart money is looking to hold cash, and looking for an opportunity to sell positions, I am not saying we should sell everything all at once, but should play a part in your judgement of attempting to allocate in these conditions.
For my personal portfolio, I am really not holding much at the moment. I’ve not talked about my personal positions in the markets in a while as I have been extremely busy over the previous couple of months, but this is me confirming that the only major position I am holding at this time is my position on $INTC. Other than that position, I do have a couple of other positions, but they are not active positions that I intend on moving around anytime soon and can ride a couple of waves with. The majority of my portfolio is just sitting in cash, waiting for more opportunities to sell premium, and simply waiting until the storm is over. I think there is a great opportunity to actively trade these conditions, but the amount of risk and exposure necessary to generate any sort of significant gains in the markets is not something that I personally want to get myself into at the moment. That is just a part of the market. It sucks that I am not generating a significant amount of gains in these conditions, but thankfully I am not exposing myself to significant downside risk.
I will let you all know when I do decide to allocate long into the markets. That may be a while until I personally have the confidence in the market price to be alert that, but we are getting a lot closer to not. Once I allocate accordingly, we will have a great time and realize a significant amount of gains together. For now, though, do what you can while actively day trading and scalping to realize gains in these choppy and turbulent market conditions!
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, $AMD, $INTC, $TSLA, $AAPL, $MSFT, $HOOD
LONG OPPORTUNITIES:
Long-Term Dividend - $GAIN / $JEPI
Long-Term Investment - $INTC
Economic News for 08/08/2024 (ET):
Jobless Claims - 8:30 AM
Wholesale Inventories - 10:00 AM
4&8 Week Bill Auction - 11:30 AM
Fed’s Barkin Speaks - 3:00 PM
Notable Earnings for 08/08/2024
Pre-Market Earnings:
Eli Lilly & Co (LLY)
Vistra Energy (VST)
Datadog (DDOG)
Cheniere Energy (LNG)
SharkNinja (SN)
Liberty SiriusXM Group (LSXMA)
GoodRx Holdings (GDRX)
Viatris (VTRS)
Krispy Kreme (DNUT)
Papa Johns (PZZA)
After-Market Earnings:
SoundHound AI (SOUN)
e.l.f Beauty (ELF)
Unity (U)
Paramount Global (PARA)
Trade Desk (TTD)
Rocket Lab USA (RKLB)
B2Gold (BTG)
Array Technologies (ARRY)
Sweetgreen (SG)
Gilead Services (GILD)
Wrap up
Hopefully, markets move positively on economic news and we are able to watch as $SPY breaks out and we are able to regain confidence in the markets. We will see what happens over the next couple of days, though, and do what we can to maximize our profit potential. Please make sure to practice safe risk management, and dow hat you can to limit your downside risk. There is a non-zero chance that the markets will ultimately continue to come down, so protect your portfolio during this time of confusion, and let’s have some fun in the process!
Good luck trading, and let’s see where the markets take us today!