HaiKhuu Daily Report - 09/09/2024

Good morning, and happy Monday! I hope you traders all had a wonderful weekend and are ready for what should be another extremely exciting and stressful week for the markets! Conditions are going to continue to be volatile and difficult to navigate this week, but I believe there are going to be some amazing opportunities to trade and realize a significant amount of gains. Please continue to tread extremely lightly and watch out for opportunities to take advantage of these conditions. Just remember, many traders are going to have an extremely difficult time as a result of these conditions, so tread extremely lightly and make sure to practice safe risk management!

This is a slower week for economic news, but some of the larger news events are as follows: 

• Today: Wholesale Inventories - 10 am EST / Apple Event 1 PM

• Tomorrow (Tuesday): Earnings - $ASO / $GME

• Wednesday: CPI Data - 8:30 am

• Thursday: Jobless Claims / PPI Data - 8:30 am

• Friday: Import Price Index / Consumer Sentiment

It is a lighter week for earnings and economic news, providing the markets with more stability but making trading more difficult. If you’d like to see all of the earnings and economic news prepared for this week, check out our WEEKLY PREVIEW!

Regardless of everything, though, this should be a fun time for the markets, so please do what you can to maximize your profit potential and realize as many gains as possible. This should be a fun time for the markets, so let’s have an amazing week and make the most of it! 

The one thing I will say that will be extremely interesting today is that we have the Apple event going live. People are expecting to see a new iPhone and a new pair of AirPods. It will be interesting trading Apple, and I’ll talk about how to navigate it later in the report! 

Good luck trading this week, and let’s see where the markets take us! 

The updated $SPY daily levels are as follows:
Conversion Line Resistance: $551.24
Baseline Support: $537.24
Psychological Support: $540
Daily Cloud Support/Resistance: $541.76

Thoughts & Comments from Last Week

Last week was a disgusting week for the overall markets, with a significant amount of weakness, difficulty, and confusion. We went from testing a new all-time high to continually selling off, causing fear and panic. Conditions were looking great as we were testing a new all-time high, but by the end of the week, all traders felt dread and despair. Hopefully, you all were able to survive trading last week, but man, that was an extremely tough week for the majority of traders.

We started the week with market conditions looking pretty great. Traders were optimistic after the long weekend, $SPY was ready to make a new all-time high, and traders were excited to take advantage of the conditions. We opened the week with $SPY trading at $560.59 and watched as $SPY continually dropped on Tuesday throughout the rest of the day and the rest of the week, slowly knee-capping traders. By the end of Wednesday, $SPY dropped to test $550, to inevitably break below that level on Thursday, and watch as $SPY sold off again to bounce off of $540 on Friday.

Friday, in my opinion, was the toughest day for the markets last week. We started the day with $SPY opening right below that $550 resistance level, opening at $549.88, and looking honestly not terrible. Traders were optimistic that we were about to see a bounce in the markets, but oh boy, that bounce genuinely never came. We watched as $SPY moved up for a brief moment early in the morning, to continually selling off throughout the entire day, only to slow down at the $540 resistance level and continue to hover there for the rest of the afternoon. There were minor moments where you were able to scalp, trade, and realize gains, but in reality, conditions were not optimal in any way, shape, or form and provided us with a terrible time for both general market conditions, and we ended the week, thankfully above that resistance level, but watched as $SPY smashed through the daily cloud in a single trading day.

We officially ended the week with $SPY trading at $540.36, down $9 on Friday, and down over $20 from open on Tuesday.

Last week was one of the worst weeks we’ve seen in the markets in a while, and coincidently, lined up perfectly with the beginning of September, thus perpetuating the September effect. It was an extremely difficult week for the markets. If you unfortunately generated some losses or are not feeling extremely comfortable or confident in these market conditions, just remember that this is not you that is the root of these losses being generated but that market conditions have not been as blindly bullish as they were over the previous couple of months, as well as the fact that the previous three weeks for the markets have been extremely tough to navigate. Regardless, though, look to actively trade this week and do what you can to make up for any general losses that may have been generated!

S&P 500 Heat Map - 09/06/2024

Thoughts & Comments for Today - 09/09/2024

Today is setting up to be a confusing time for the general markets. We sold off heavily last week; the question is, do we continue to sell off, or is $SPY $540 a major support level that we can all capitalize on while the markets bounce from here? That is the true question, which no one knows the answer to. At the time of writing this report this morning, markets did bounce up slightly, providing us with an amazing opportunity to actively trade, but just because these conditions are looking good during the pre-market session does not mean that it is going to be able to retain this level throughout the rest of the day. Please, continue to tread lightly in these market conditions, but do what you can to maximize the number of gains that you are going to be able to generate here in the short term. 

The last level of major daily support is the baseline support on $SPY. That level is currently trading at $537, and hopefully, we will be able to respect that level as well as $SPY $540, but just know that is my personal line of comfort, where as long as we are able to retain these levels of support, I’ll be comfortable enough navigating these conditions but treading lightly, to getting to the point where I am not comfortable or confident enough to allocate accordingly once we are below that level. 

If we break below that daily support level, I will start to become slightly fearful and bearish about these market conditions. We can very easily snap back up, and that is what I ideally want to happen, but as you all know, as I say, no one cares about our feelings and sentiments in the markets. We have to navigate the markets accordingly, not based on our feelings but on the thoughts of the other traders. So look to simply follow this general market momentum and not fight the trend. 

I think in the case that the markets do sell off, there is going to be an amazing opportunity to allocate with general comfort and allocate more with confidence. Once you are able to do both, then you will be in a place where you should be able to realize gains relatively consistently and with confidence. But until we get to that point, who knows what is about to happen? 

So, with Apple’s launch event happening today, we are going to see a significant increase in the volatility and the movement in the markets. There are going to be a lot of thoughts and feelings going into this event, and it’s going to be a mixed bag of reactions when the new products are being released, to either negatively or positively impact the markets. Realistically, I do not believe that this new iPhone is going to do anything of any major significance to Apple, where they are not going to be able to revolutionize what they’ve already created, but I believe that it will heavily impact the markets. Historically, we’ve seen on days like today, where the markets push Apple up as people start to FOMO into shares, to watch as Apple sells off slightly into the event as people are selling their shares, only to pop off again at the beginning of the event, to watch as shares either top out and come down after the iPhone release, or watch as Apple continually rallies afterward as a result. 

I am not going to be trading Apple, but if I were, this would be my game plan. 

I would not advise touching Apple early in the morning. If Apple follows historical movement, we should see a nice movement up early in the morning, mostly as there is strength and confidence in the general markets, but we will watch as Apple starts to sell off once it is overbought. This would be my first time advising an entry is to short Apple once it is overbought, wait until the lunchtime lull to cover that position, and reverse it leading into the event. Capitalize on the momentum leading into the event, and hopefully, provide you with a cushion to set a stop in profit on your position, retain that position into the beginning of the event, and hold through until DURING the iPhone presentation. Once the iPhone has been announced, the large majority of people will start to tune off of the event, eyes will be lost, and this will be a great time to exit your position and move on with your life. I would not advise attempting to actively trade Apple after this, but if you are attempting to trade, at least follow the general market momentum and set stops to minimize the amount of risks that you take in the process. Regardless, though, please just be smart and safe if you are attempting to trade the Apple event today! 

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, $AAPL, $NVDA, $INTC, $AMD, $TSLA, $AIFF

LONG OPPORTUNITIES:

• Long-Term Dividend - $GAIN / $JEPI

• Long-Term Investment - $INTC

Economic News for 09/09/2024 (ET):

• Wholesale Inventories - 10:00 AM

• Apple Event - 1:00 PM

• Consumer Credit - 3:00 PM

Notable Earnings for 09/09/2024

Pre-Market Earnings:

• No Earnings Scheduled

After-Market Earnings:

• Rubrik (RBRK)

• Mission Produce (AVO)

• Calavo Growers (CVGW)

• Matrix Service (MTRX)

• Skillsoft (SKIL)

Wrap up

Hopefully, market conditions only continue to get better over the next couple of trading days as we come and test the daily cloud.  If we are not able to break back above these levels, it will seem that the September effect has come to fruition once again, but we continue to remain optimistic. Tread lightly as these trading conditions are difficult, even for some of the more experienced traders out there, so do what you can to realize gains, but just understand that realistically, in these current scenarios, regardless of everything, life goes on.

We can always hope for the best, but we have to remain realistic with our sentiments. Make sure to protect your bottom line and your portfolio with your allocations today. It will be an interesting time to see where the markets take us. 

Good luck trading, and hopefully, we will see $SPY reverse this week!