HaiKhuu Daily Report - 08/21/2024
Good morning, and happy Wednesday! Are you READY TO RUMBLE???? FOMC minutes are coming out today at 2 pm EST, and traders should be EXCITED for these conditions. Please be extremely careful navigating these current market conditions, but look to take advantage of any momentum or opportunities that are presented to us. Markets are looking extremely strong throughout the recovery that we’ve seen over the previous couple of weeks. Now is a question of will the Federal Reserve will pump us to a new all-time high today or if the markets are going to, unfortunately, start to sell off. Regardless of which direction the markets take, opportunities will be amongst us, and we will be able to profit with ease.
Practice risk management and be careful trading around 2 p.m. EST, but do what you can to make the most of these market conditions. We will have an amazing time trading today, so sit back, prepare, and have an amazing time in the process!
Good luck trading, and let’s see where the Feds take us today!
The updated $SPY daily levels are as follows:
Conversion Line Support: $541.34
Baseline Support: $537.71
Psychological Support: $550
Psychological Resistance: $560
Daily Cloud Support: $552.76
Thoughts & Comments from Yesterday 08/20/2024
Yesterday was a choppy and rough day for the markets. Apologies again for having the power go out at the office. That was unexpected, but honestly, it was not the worst day to lose power for a little. Conditions yesterday were weak, bearish, and unforgiving. Many traders who overtraded got slaughtered, but situationally, trading yesterday was inconsistent. Unless you were overleveraging yourself, you should have been fine!
We started the day with the markets looking great, opening at $559.17, down slightly from the close on Monday, but conditionally still looked great. $SPY rallied up early in the morning, right after opening, to break through the $560 resistance and look extremely strong. We made the official high of the day trading at $560.83, up slightly for the day and less than 1% away from the previous all-time high.
After making the official high of the day, market conditions only got weaker and weaker, coming down after rejecting $560 and making new lows of the day the entire way down. Thankfully, we did find some support at $SPY $558, bouncing off of that level multiple times throughout the late morning through the early afternoon. We saw a small pop in the markets as $SPY attempted to go black for the day during lunch but was a bet with some almost instant bearish momentum, where $SPY was sold off again to make the official low of the day, trading at $557.33, before moving back up leading into power hour.
$SPY in the early afternoon went black for the day, officially recovering all of the losses that were incurred previously, but again was slowly sold off leading into close, where we ended the day with $SPY officially trading at $558.70, down $0.91 for the day, or down 0.16%. It was an extremely tough day to navigate, but honestly, it was not the worst possible scenario. It is unfortunate to see the markets come down, but with a 0.16% downside, it is genuinely nothing to be worried about or anything that should cause any concern. If you wiped out your account yesterday or were at risk of that happening. Just know that you are taking on too much risk and exposure in these market conditions and that you should reach out to me, my team, or the community to get some assistance in making sure that you are increasing the safety parameters that you can take!
S&P 500 Heat Map - 08/20/2024
Thoughts & Comments for Today - 08/21/2024
Today is setting up to be another interesting day for the general markets. With $SPY displaying minor strength during the pre-market session, conditions are looking strong, and traders are confused but optimistic for the day. As I said before, $SPY is in a place where it can very easily break out, but I feel that FOMC minutes coming out today at 2 pm EST is going to be a catalyst for any sort of large directional moves today. People will be allocated accordingly as a prediction of what will happen once the minutes come out, and the minutes will directly impact the general market sentiment.
Assuming that market conditions remain consistent not only throughout today but for the rest of the week, as I’ve said before, we could see a NEW all-time high be developed on $SPY as minutes come back, and rates remain unchanged, future plans look strong, and the markets react positively, we are in a great spot to capitalize on these market conditions. The only issue is when the markets start to display signs of weakness across the board. The sell-off, in the case that this happens, will be slow and drawn out, not to cause any panic, but it will be a slow bleed as markets continually sell off, making it extremely difficult to attempt to buy any dips. But that is a risk that should always be considered when not only actively trading, but realizing gains at the same time.
Be extremely careful if you are attempting to trade today. The one big thing that you should make sure you are doing is attempting to follow the larger move. Assuming that the markets are moving up, be long with a tight stop and continually adjust to guarantee more and more profits. If the markets are selling off, sell your positions, be short, and wait for that sign of a reversal.
As a result of the minutes coming out, there should be many reversals today. I am expecting to see a nice movement and reversal early in the morning and a reaction and recovery afterward, leading into lunch. This means we pump at open, dump, and recover again after lunch, or dump at open, recover beautifully, and sell off during lunch.
Anything can happen in these conditions, but I am confident we will see multiple rejections and reversals throughout the morning while everyone is preparing for FOMC minutes to be released, confusing many traders and making it difficult to allocate with confidence. If you are not confident in allocating, don’t allocate, and if you are not comfortable taking on risk and exposure but are confident in allocating, look to limit your downside risk and scale your position sizing down until the point you are confident in the position, and room to average down when necessary!
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, $MSFT, $AAPL, $GOOGL, $AMZN, $AMD, $INTC, $XOM
LONG OPPORTUNITIES:
Long-Term Dividend - $GAIN / $JEPI
Long-Term Investment - $INTC
Economic News for 08/21/2024 (ET):
FOMC Meeting Minutes - 2:00 PM
Notable Earnings for 08/21/2024
Pre-Market Earnings:
Target (TGT)
Macy’s (M)
TJX Companies (TJX)
Dycom Industries (DY)
Analog Devices (ADI)
ZEEKR Intelligent (ZK)
After-Market Earnings:
Snowflake (SNOW)
Zoom Video Communications (ZM)
Synopsys (SNPS)
Wolfspeed (WOLF)
Agilent Technologies (A)
Urban Outfitters (URBN)
Wrap up
This will be a wild day with FOMC Minutes actively impacting the general market sentiment with the people trying to navigate while being confused. Opportunity will be amongst us, so now it is just a matter of being able to navigate these conditions with comfort and confidence, but then a matter of remaining consistent in a volatile day for the markets. Regardless of anything, make sure to practice safe risk management and limit that downside risk as much as possible! Realize some gains, and let’s have some fun today!
Good luck trading, and let’s watch to see if we make a NEW all-time high on $SPY!