HaiKhuu Daily Report - 09/05/2024
Good morning, and happy Thursday! Market conditions are looking rough as we’ve sold off from the top, and I hope you all are ready for another turbulent and tough day for the general markets. We have some major economic news coming out today during the pre-market session, and market conditions are only going to become more turbulent as a result of this. Please tread extremely lightly at this time, as we are at two levels of major daily support. Either we are going to sell off, or we will watch as $SPY rallies beautifully from here. Regardless of what the markets do, please protect your bottom line and practice safe risk management.
September historically is a difficult time for market conditions; I would not have this negatively impact your general market sentiment or your active positions, but I would keep this in the back of your mind if you are attempting to allocate long into the markets and do not have the confidence to execute the position.
Continue to tread lightly. We are at this major support level and can very easily break through and sell off.
This should be another fun day for the markets, so good luck trading today, and let’s see if $SPY is able to break out!
The updated $SPY daily levels are as follows:
Conversion Line Support: $556.83
Baseline Support: $537.24
Psychological Support: $550
Daily Cloud Support: $549.90
Thoughts & Comments from Yesterday - 09/04/2024
Yesterday was a rough day for the overall markets. Traders could have capitalized in either direction; it was just a matter of consistently realizing gains or not in the process. $SPY definitely chopped out some traders and forced some traders to generate some losses, but regardless of market conditions, that is just life. Thankfully, opportunities were amongst us to realize gains, and life thankfully moves on, but man, was that a tough day for the overall markets.
We started the day with $SPY opening at $550.22 and watched as the markets rallied right from open. Conditions were looking great, traders were optimistic, and we were watching as the markets moved up beautifully from open, making traders both optimistic and excited. $SPY went on and continued to rally for the first half of the morning, going on to make the official high of the day, trading at $554.42, before starting to come back down and sell off during the lunchtime lull. $SPY went on to make a relative low trading right below $552, but thankfully, conditions were able to get slightly better, as $SPY recovered and went green again for the day as volume came back into the markets, but this was the last time $SPY was green for the day.
During the afternoon, we watched as $SPY continued to slowly trickle down, taking out many traders with them in the process. Conditions were not ideal in any way, shape, or form, but thankfully, we were able to retain the level we were at versus mindlessly selling off. We watched as $SPY went on to make the official low of the day, trading right below the $550 support, trading at $549.46. Thankfully, markets were able to move back up slightly in the process, which was a great time, but the movement up was nothing of any major significance. $SPY ended the day trading at $550.95, down $1.13 for the day, or down 0.20%.
Market conditions yesterday were not the worst possible results, but realistically, it was not a great day either. Hopefully, you all capitalized on the general market conditions and realized gains in the process, but regardless, it’s life. We move on and do what we can to see another day! Let’s see what the markets have in store for us today and do what we can to make the most of it!
S&P 500 Heat Map - 09/04/2024
Thoughts & Comments for Today - 09/05/2024
Today is setting up to be another rough day for the overall markets. With $SPY testing major support and major economic news coming out during the pre-market session, I believe that we are finally going to be able to see the directional move that we are waiting for at this level. The real question is, do we break down, or do we sell off?
Every trader who wakes up this morning and prepares for the day will ask this question, but no one knows the right answer. A lot can happen in an extremely short period of time; it is just a matter of whether people will be able to capitalize on these conditions, regardless of where the economic news takes us.
My recommendation for all of you, as it has been for a while, is that if you are attempting to trade in these market conditions, you simply should not fight the trend. It is a lot easier to follow the general market momentum, mostly at this point, and follow the trend. The only time I would ever recommend considering fighting a trend, is in the scenario where we see a confirmation of a reversal from the direction the markets are headed, and you are both comfortable and confident allocating into the general markets. This is great for the individuals who are actively attempting to scalp in the short term, but just remember that regardless of how bearish the markets look here in the short term, market conditions are still extremely strong, but these conditions make trading both extremely difficult and unrealistic to be able to capitalize on with confidence.
If you could not tell; I am advising everyone to practice extreme caution in these market conditions, mostly with the way the markets are moving at the moment. If conditions get better, then obviously do what you can to capitalize on the momentum, but tread extremely lightly. Scalpers and day traders are going to get burnt as a result of tough market conditions and elevated volatility, while people who are attempting to allocate long into the markets are now purchasing at an extreme premium. With the way the markets are looking at the moment, it is hard to be extremely optimistic until conditions get better. So tread lightly and prepare accordingly for anything that may happen here in the short term.
For my allocations today; I do plan on attempting to actively scalp and day trade where I can, but I will say that I am not the most comfortable in these market conditions. I will do what I can to maximize my profit potential, but in reality, with the way the markets are looking at the moment, I will not make any decisions on how I personally want to allocate today until economic news is dropped and we see the directional move in the markets. If we break out and show strength, I will look to allocate into higher beta long positions like $TSLA, $AMD, and $NVDA, but in the case that market conditions look extremely weak, I will be looking to short a couple of organizations like $TSLA, $META, and $AMZN.
Regardless of what happens, please make sure to practice safe risk management and do what you can to maximize your profits while minimizing your risk in these 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, $TSLA, $AMD, $INTC, $AAPL, $MSFT, $RIVN, $AIFF
LONG OPPORTUNITIES:
Long-Term Dividend - $GAIN / $JEPI
Long-Term Investment - $INTC
Economic News for 09/05/2024 (ET):
ADP Employment - 8:15 AM
Initial Jobless Claims - 8:30 AM
Services PMI - 9:45 AM
ISM Services - 10:00 AM
Notable Earnings for 09/05/2024
Pre-Market Earnings:
Toro Company (TTC)
Science Applications (SAIC)
Methode Electronics (MEI)
SecureWorks (SCWX)
VersaBank (VBNK)
NIO (NIO)
Hooker Furniture (HOFT)
After-Market Earnings:
Broadcom (AVGO)
UiPath (PATH)
Samsara (IOT)
DocuSign (DOCU)
Planet Labs (PL)
Braze (BRZE)
Rent the Runway (RENT)
Guidewire Software (GWRE)
Quanex Building (NX)
Wrap up
Hopefully, the economic news is strong enough to cause the markets to move up; please tread lightly, as we are at the $550 daily resistance level. Markets will be difficult to navigate here, but just look to simply follow the general momentum. Practice risk management, realize gains, and do what you can to simply not fight the market momentum. Conditions could get better here in the near future, so just continue to do what you can to make the most out of these conditions while, again, protecting your bottom line. This should be a fun time to trade, so let’s have a great time and realize some gains today!
Good luck trading, and let’s see if $SPY is able to bounce here!