HaiKhuu Daily Report - 09/06/2024
Good morning, and happy Friday! Man, this week has flown by, and I hope that you all are ready for today! Market conditions are not looking the best right now as a result of $AVGO earnings yesterday, which negatively impacted semiconductors and the markets. It is unfortunate that this is the current scenario, but regardless, it’s life.
Hopefully, market conditions will get better from here, as this has been an extremely rough couple of days. $SPY is back within the daily cloud and is showing weakness here in the short term. Please do what you can to minimize the general risks and exposure when attempting to trade today, but do what you can to take advantage of this bearish momentum. My primary plan for the day is not to actively scalp and trade but to look to remain more passive and sell CSPs when I am comfortable doing so. With equities down and volatility up, this is a great time to attempt to capitalize on the momentum in the markets and do what I can to maximize my profits.
Regardless of whatever happens today, please continue to tread extremely lightly on these market conditions as many traders are going to attempt to trade today, and a large majority of them will realize losses. So please attempt to be smart. Every day provides us with opportunities to trade, but today might be the day that traders should be safer and attempt to make better positions. It will be interesting to see where the markets go from here.
Good luck trading today and let’s see if $SPY can finally recover today.
The updated $SPY daily levels are as follows:
Conversion Line Support: $555.65
Baseline Support: $537.24
Psychological Support: $550
Daily Cloud Support: $549.90
Thoughts & Comments from Yesterday, 09/05/2024
Yesterday was a rough day for the general markets. I assume the large majority of traders realized some losses yesterday. Market conditions were tough, and if you did lose some money, just know that you are not the problem. These market conditions had just been extremely tough over the previous week. Regardless, though conditions could have been better, they could have also been significantly worse.
We started the day with $SPY opening at $550.85, looking relatively strong. It opened slightly below the previous close but moved up nicely during the pre-market session. $SPY quickly rallied after opening, going to make the official high of the day within the first hour or so, trading at $553.76. Conditions were alright at the top, but they quickly were shot back down.
Leading into the lunchtime lull, we watched as liquidity was pulled out of the markets, everything continually tanked, and $SPY broke below $550 with ease and went on to make the official low of the day, trading at $547.10. Conditions at the bottom were rough, but at least it did give us an opportunity to alert a $549 0-DTE call that resulted in a 130% rally in roughly an hour.
During the afternoon, markets slowly moved up, which was an amazing time, providing the markets with both the comfort and confidence to trade smaller movements and the traders who got into the $549s were printing. Markets did come back down slightly into close, officially ending the day under the $550 support level, inside the daily cloud, with $SPY trading at $549.61, down $1.34 for the day, or down approximately 0.24%.
Overall, it was an extremely tough day for the overall markets, as there was no solid momentum for us to be able to capitalize on with confidence, and market momentum was not in our favor, but regardless, this is how it feels to be within a consolidation period, making navigating the current market conditions difficult, but thankfully, once we find a direction for the markets, we can allocate accordingly! Hopefully, we start to see some real movement in the markets today and make the most out of these conditions!
S&P 500 Heat Map - 09/05/2024
Thoughts & Comments for Today - 09/06/2024
Honestly, going into today is absolutely disgusting, and I am a firm believer that many people who attempt to trade today will get absolutely slaughtered in the process. I don’t want to be the boy who cries wolf or the bearer of bad news, but that is just what I think is going to happen today. I might be wrong, and the markets absolutely rip and rally from here, but I will say that it is extremely hard to be overly optimistic after watching $SPY show the first signs of a reversal from the top after dropping the previous couple of days, to only watch as $AVGO dive on earnings. I am still optimistic about these market conditions, as we do need to move up, and I am confident that with enough time, we will, but I think that here in the short term, we should be attempting to prioritize our allocations and do what we can to maximize our profits in the process.
As I continue to warn, please make sure that you are practicing safe risk management in these conditions. Many traders are going to have an extremely difficult time, mostly if conditions are choppy and volatile. Many stops will get kissed out, and traders will become emotional when attempting to trade on a day like today; please tread extremely lightly and do not do anything that would put you or your portfolio at risk. These conditions are not worth the risk at all in any way, shape, or form; make sure to survive today so you can trade tomorrow!
The one play that I anticipate making today is selling CSPs on $AVGO. With the terrible reaction to their earnings yesterday, put premiums should be through the roof around market open. I do not know exactly which contract I want to sell, but I am anticipating selling around the $120~ strike, and ideally, I want to sell a contract on the far end of the total expected range. I do not want to be assigned on this contract, but I want to make sure that I am still able to collect premium. It will be interesting to see where these contracts open up, but that is going to be the primary position I will be watching and allocating to today!
I do not anticipate attempting to scalp or day trade today, but if given an opportunity to do so, I will do what I can to scalp when I am comfortable. I will say again that my main priority at this moment is to survive today. I don’t want to do anything that might jeopardize my portfolio, so I am planning on remaining more passive today and selling those CSPs on $AVGO and scalping organizations like $NVDA, $TSLA, and $AMZN when given an opportunity to do so!
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, $AVGO, $NVDA, $INTC, $AMD, $AMZN, $TSLA, $RIVN, $AIFF
LONG OPPORTUNITIES:
Long-Term Dividend - $GAIN / $JEPI
Long-Term Investment - $INTC
Economic News for 09/06/2024 (ET):
Unemployment Report - 8:30 AM
Unemployment Rate - 8:30 AM
Hourly Wages - 8:30 AM
New York Fed President Williams speaks - 8:45 AM
Notable Earnings for 09/06/2024
Pre-Market Earnings:
Big Lots (BIG)
ABM Industries (ABM)
BRP (DOOO)
Genesco (GCO)
Wrap up
Hopefully, markets will be able to recover from this relative low, but regardless of how market conditions treat us, please tread lightly and do what you can to maximize your profit potential. Many traders are doing what they can to maximize their profit potential, but at the same time, just protect your bottom line. It is difficult being able to actively trade in bearish and tough market conditions, so if you are not a confident swimmer, at least tread water today and don’t drown because eventually, the waves will settle down, and we will be in a significantly better spot again. Look to sell some CSPs just for relative ease today, and do what you can to protect yourself.
Regardless, this has been a rough 2-3 weeks for the markets, if you’ve had a tough time during this time, just know that it is not you, but that we’ve started to see a lot of difficulties in the markets as a result. So don’t kick yourself while your down, but pick yourself up and prepare for the next fight.
Good luck trading, and let’s see how we end this week!