HaiKhuu Daily Report - 09/19/2024
Good morning, and happy Thursday!!! I hope you traders are feeling great, as market conditions are looking absolutely AMAZING. $SPY is going on a tear as we are above the previous all-time high at the time of writing this report!
Rates have dropped by 50 bps, and I believe that this is the start of what could be an extremely profitable time for everyone. Hopefully, economic conditions won’t be obliterated over the next couple of months, but regardless, we will have an amazing opportunity to ride the market momentum and do what we can to realize a significant amount of gains. Many people will wake up to a beautiful surprise, but please do not count your eggs too soon, as anything can happen. I do not think, realistically, markets will go red today, but there will be many opportunities to get burned on an intraday basis, and death via paper cut does not sound like fun. So be smart out there today, but do what you can to ride the momentum.
I’ll post more about navigating the markets later in the report, but for now, just sit back, relax, and enjoy this NEW all-time high on $SPY!
Good luck trading today, and let’s continue to make new highs!
The updated $SPY daily levels are as follows:
Conversion Line Support: $554.14
Baseline Support: $552.49
Psychological Support: $560
Psychological Resistance: $570
Daily Cloud Support: $537.71
Thoughts & Comments from Yesterday - 09/18/2024
Yesterday was another difficult yet beautiful day for the overall marketers. There were many great opportunities to trade and many great opportunities to get burnt. Thankfully, $SPY did make a NEW all-time high. As a result of this, many traders are remaining extremely optimistic about these market conditions, mostly as we got a 50 BPS rate cut, and are expecting to see more rate cuts going into the end of the year, meaning people, in general, are going to have more cash in their pockets!
We started the day, and honestly, the market conditions were not looking the best. We opened the day with $SPY trading at $563.71, above the previous high, and watched as $SPY continued to trickle down throughout the entire morning, going on to make a relative low of the day trading right above $560, but watched as $SPY went on and moved back up leading into the interest rate discussion, and man oh man, that is the only point of the day that matters, and the only time anything of notable significance happened.
So, 2pm EST rolls around, we get the news of a 50 BPS cut, and watch the markets quickly rally to make a NEW all-time high and continually chop around before pushing back up and making the official all-time high, trading at $568.68. Conditions were beautiful, markets were great, and everyone had an amazing time until we sold off, going on to make the official low of the day, leading into close trading at $560.83 before ending the day with $SPY trading at $561.40.
Conditionally, it was an amazing day for the markets despite us ending the day with $SPY down $1.67, or down 0.3%, but that’s honestly just life. Conditions could have been significantly better if we were able to retain the gains that were generated yesterday, but regardless, it is simply just life, and I am very excited to see where the markets take us today!
S&P 500 Heat Map - 09/18/2024
Thoughts & Comments for Today - 09/19/2024
Today is looking absolutely wild, and I do not know how to start this portion of the report out today. With the way that the markets sit at the moment, we are trading well above the previous all-time high, and situationally, I think that we can easily continue to go. Does that mean we are actually going to head up and break out here? No clue. But what I can say for now is that these conditions are good, these conditions are strong, and traders should have absolutely zero issues realizing some gains while attempting to trade today.
So, where do we go from here? Realistically, I think that the markets will continue to go up while people are in a state of euphoria in the markets with the rate cuts that happened and that are planning on happening again in the near future. Conditions are strong, and people are optimistic. For now, continue to ride the momentum in the markets, look to allocate to smaller cap organizations that have a significant amount of operational debt that can be financed at a cheaper rate, increasing profitability, and again, simply follow the trend. This may sound easy to some, and this may seem difficult to others, but I know that many of these organizations will do wonderfully as people are excited to trade.
But, what will happen in the near future is when the euphoria is over, and the honeymoon phase of rate cuts is past us, that is where I think market conditions will get extremely tough. I believe we will see many organizations drop significantly in an extremely short period of time as many traders start to cut positions they have been in prior and need justification for exiting a position. Once the selling starts, it will be quick, it will be unexpected, and it will hurt many traders. Do not fear this downside, but just know that when it comes, it will come swinging.
If you want to capitalize on these market conditions, the best way I believe you can capitalize on it is by attempting to actively scalp and day trade today. Scalping will be fun as we can realize gains on an extremely quick basis due to the market momentum, but at the same time, that is why I believe day trading will be better today. Instead of capitalizing on a quick 30-second move on $AAPL, why not hold it for a couple of hours, let the position continue to run with the markets, and continually adjust your stop-up to guarantee more and more profit? One sounds like a stressful minute or two, if not longer, versus being able to practice risk management, sit back, and relax. It sounds like a no-brainer because it is.
For my allocations today, if I am just being completely honest. I don’t know what I want to do while writing this report. I do want to trade and capitalize on these market conditions, but I am still holding a significant amount of equities across the board that have done extremely well overnight. I do not want to test my luck and attempt to overtrade, but at the same time, if an opportunity presents itself to me, then I will let it run its course and do its thing, but I do not want to take on a significant amount of risk right now.
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, $AMZN, $MSFT, $RIVN, $BA, $AIFF
LONG OPPORTUNITIES:
Long-Term Dividend - $GAIN / $JEPI
Long-Term Investment - $INTC
Economic News for 09/19/2024 (ET):
Initial Jobless Claims - 8:30 AM
Existing Home Sales - 10:00 AM
Notable Earnings for 09/19/2024
Pre-Market Earnings:
Darden Resturants (DRI)
FactSet Research (FDS)
Cracker Barrel (CBRL)
Endava (DAVA)
After-Market Earnings:
FedEx (FDX)
Lennar (LEN)
MillerKnoll (MLKN)
Research Solutions (RSSS)
Wrap up
Hopefully, market conditions only continue to print money for traders today, but just remember that market conditions are favorable for now, but that does not mean you shouldn’t practice safe risk management and remain skeptical. Just continue to tread lightly and do what you can to maximize your profit potential. I think we could generate life-changing money in the markets today, so let’s see where the conditions take us today, and have a great time!
Good luck trading today, and let’s see where $SPY takes us!