HaiKhuu Daily Report - 08/23/2024
Good morning, and happy Friday! Markets are looking confused, and it looks like we hit it on the head while watching the markets make a large directional move yesterday. I think conditions are getting significantly stronger situationally, but I would continue to tread lightly. We have Jerome Powell speaking at Jackson Hole, and as a result, we expect to see sudden volatility and an irrational movement as a result of what is being said by him. I think that, realistically, today’s going to be a great day, but there will be a lot of difficulties in navigating the general markets. Opportunities will be presented to realize gains, while opportunities will be presented to get absolutely burnt in the process. Protect your bottom line, make some smart decisions, and allocate accordingly as a result.
Also, just as a reminder, I will be completely MIA on Monday, so there will be no reports, active trades, or alerts. However, anyone in the exclusive trading community will be compensated with an extra free day of access. Thank you all for understanding, and I appreciate the support!
Good luck trading, and let’s see if $SPY is able to make a full recovery today!
The updated $SPY daily levels are as follows:
Conversion Line Support: $547.07
Baseline Support: $536.72
Psychological Support: $550
Daily Cloud Support: $553.37
Thoughts & Comments from Yesterday - 08/22/2024
Yesterday was another generally disgusting day for the markets. Selling was not the absolute worst, but it was not good in any way. There were many opportunities to attempt to catch a falling knife; the question is, were you able to catch it and not get cut?
We started the day with $SPY opening at $562.54, looking relatively strong. We watched as $SPY moved up beautifully at open, going on and making the official high of the day trading at $563.18, up beautifully, continuing to edge closer and closer to the previous all-time high. We were within a $2 range at the top, but conditions only got weaker and weaker throughout the morning.
$SPY quickly sold off from the top, and within the first hour of the day, it was hovering relatively black for the day, hovering right above $560. Conditionally, markets could have been significantly better, but welp, that is just life. $SPY sold off leading into the lunchtime lull, continually making new lows of the day before quickly bouncing back up and testing the $560 resistance level for the last time in the day.
Once we watched as $SPY rejected that $560 level, conditions only continued to get worse and worse as $SPY sold off and continued to make new lows of the day. We watched as $SPY made the official low of the day, trading at $554.98, down almost $10 from the top, and continued to hover around that level until the markets closed.
We ended the day with $SPY trading at $556.22, down $4.40 for the day, or down 0.8%. It was an extremely rough day for the general markets that provided us with opportunities to trade, opportunities to follow the momentum, and opportunities to simply sit on your hands. I hope you all were able to come out and realize significant gains with relative ease yesterday, realizing gains in the process and making some strong positions you are comfortable and confident in. It will be interesting to see where the markets take us today, so let’s prepare accordingly and realize gains while we can!
S&P 500 Heat Map - 08/22/2024
Thoughts & Comments for Today - 08/23/2024
Today is setting up to be an extremely fun day for the markets, with a significant amount of strength across the board. $SPY is displaying confidence during the pre-market session at the time of writing this report, and it would be beautiful to see a solid recovery in the markets, providing us with comfort and confidence that market conditions will only continue to get better and better over the trading day. Hopefully, that is the case. We are able to watch as $SPY rips new all-time highs, and Jerome Powell says that market conditions only continue to get better, but it is just a matter of time until we do see some general movement in the markets and do what we can to take advantage of these scenarios.
Please be extremely cautious and skittish in these market conditions. I think we will see a significant amount of volatility in the markets today as a result of general statements being made at Jackson Hole, and it is for us to be able to anticipate when those moves happen, whether or not they will be in our favor.
For trades you attempt to take today, please look to actively scalp and day trade while setting stops to limit your downside risk as much as you can. When given an opportunity to realize gains, at least set a stop at break-even to be able to comfortably and confidently ride the market momentum with little to no downside. Yes, it will be unfortunate the multiple times that you stop out of your positions, but the stops are there to save you, in case you need to be saved. It's never ideal to close out a position for zero gains, but zero gains are better than any form of loss.
Just something to consider that I just got my eyes on. I just allocated into $FIVE. This is not a signal to buy or sell any position, nor am I a professional financial advisor, so please take this position at your own risk and do your own due diligence. But $FIVE has had an extremely tough year, being down over 60% YTD. 2024 has been a rough year for the organization as it went from trading at $216 all the way back down to $65. But, we are starting to see signs of a reversal on the daily, with a bounce from the bottom and a weak bullish TK crossover. We are grasping for straws with this allocation, praying that this is the bottom, but realistically, $FIVE has earnings next week on the 28th. Assuming that earnings do well, I think we can see a significant move in our favor. It should be a lot of fun, but understand that there are a lot of risks that are involved with taking an earnings play on a failing company. I would never advise it to others, but, this is one of those few scenarios where I really do like this gamble, the question is are we about to take a significant loss, or are we going to be able to generate a significant amount of gains with ease. Who knows, we will see exactly what happens over the next couple of days with $FIVE.
I will say on top of my previous statement I still do believe that $DG is the superior discount/dollar store, but at the end of the day, $FIVE is providing us with an extremely interesting setup that I am a fan of, compared to $DG at the moment.
TLDR; $DG > $FIVE, but $FIVE opportunity right now > $DG
But continue to capitalize on these market conditions. Opportunities will be amongst us, so realize some gains today and have an amazing time!
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, $RIVN, $FIVE
LONG OPPORTUNITIES:
Long-Term Dividend - $GAIN / $JEPI
Long-Term Investment - $INTC
Economic News for 08/23/2024 (ET):
New Home Sales - 10:00 AM
Notable Earnings for 08/23/2024
Pre-Market Earnings:
Gold Fields (GFI)
Wrap up
Hopefully, market conditions only continue to get better today, and we will be able to watch as $SPY rips and provides us with both comfort and confidence in the process. Market conditions are strong, and traders are optimistic, but this is no reason for you not to be able to capitalize on these market conditions. Tread lightly, follow the general momentum, and as always, practice safe risk management! This is going to be a great day, so let’s have some fun!
Just a reminder, I will be COMPLETELY MIA on Monday, meaning there will be no daily report, and I will not be around to trade. Thank you all for understanding, and wish me luck on Sunday!
Good luck trading, and let’s end this week strong!!!