HaiKhuu Daily Report - 10/07/2024
Good morning, and happy Monday! I hope you all had a wonderful weekend and are ready for what will be a fun time for the markets! Earnings season is coming up, with Financials kicking us off this Friday, and the markets are in a state of optimistic confusion. $SPY is within range of making an all-time high, but traders are starting to get skittish with the ways they want to allocate in these conditions. Please continue to tread lightly on these conditions, but do what you can to maximize your profit potential. Many traders will realize gains, while others have difficulty capitalizing on these conditions. We have FOMC minutes coming out on Wednesday at 2 pm EST, so expect to see choppier conditions on Wednesday as a result of this!
Markets were down slightly when I wrote this report, but expect to see choppy market conditions until we pick a direction to break out. Just remember that despite the strength in the markets, sentiment can easily shift in a matter of seconds.
So make some smart decisions, realize some gains, and have some fun!
For economic news this week, these are the major events to look out for!
Monday
Nothing Major - Consumer Credit @ 3 pm EST
Tuesday
Bostic Speaks - 12:45 pm
Wednesday
Wholesale Inventories - 10 am
FOMC Minutes - 2 pm EST
Thursday
Jobless Claims / CPI - 8:30 am
Friday
PPI - 8:30 am / Consumer Sentiment - 10 am
If you’d like to read the FULL Weekly Preview, click HERE to prepare for the week!
Good luck trading today, and let’s have an amazing time this week!
The updated $SPY daily levels are as follows:
Conversion Line Support: $569.99
Baseline Support: $557.08
Psychological Support: $570
Daily Cloud Support: $547.34
Thoughts & Comments from Last Week
Last week was a confusing week for the overall markets. There were opportunities to trade, but the markets were extremely choppy and inconsistent. Many traders were able to realize a significant amount of gains in a short period of time, and I am extremely happy about that, while other traders unfortunately had a tough time navigating these conditions. Regardless, opportunities were amongst us, and it was a matter of whether you were able to capitalize on them!
We started the week with $SPY trading at $570.46. Conditions were looking strong, as $SPY seemed like it was getting ready to test the previous all-time high. However, we watched as market conditions on Monday were relatively weak, followed by genuine weakness on Tuesday. The weakness on Tuesday caused $SPY to sell off and break below the conversion line on the daily, signaling traders to start becoming more skeptical and cautious in the short term.
As a result of $SPY breaking below the conversion line, markets remained relatively neutral, chopping around on both Wednesday and Thursday, making the official low of the week trading at $565.27. Thankfully, market conditions did get slightly better towards the end of the week, finally breaking out on Friday.
Markets rallied beautifully on Friday, opening at $572, up almost $5 from the previous close. Then, conditions started to get wild. $SPY showed a lot of strength in a short period of time, rallying during the pre-market session, but just because conditions were strong going into the open did not mean that they would remain that way.
We watched as $SPY dropped from $572 at open on Friday to drop and make the official low of the day trading at $568.19, below the daily conversion line, before watching as the markets thankfully recovered throughout the entirety of the afternoon, displaying general confidence in the process, and ending the day officially green, on both an intraday and overall basis, ending the week trading at $572.98. $SPY rallied up $5 from the bottom on Friday, meaning we ended the week with $SPY up roughly $2.50, or up approximately 0.5%.
I will say that last week was an extremely difficult week to navigate the markets, but thankfully, opportunities were amongst us the entire time. Choppy market conditions provided us with opportunities to actively trade and realize a significant amount of gains in the process. Congratulations to everyone who was able to realize a significant amount of gains trading with us last week, and let’s see what this week has in store for us!
S&P 500 Heat Map - Last Week
Thoughts & Comments for Today - 10/07/2024
Today is going to be an interesting time for the overall markets. As I said before, traders are optimistic as we are getting extremely close to making a NEW all-time high on $SPY, but just because conditions are strong does not mean that traders are confident in their ability to navigate these conditions. Look to take advantage of these market conditions, but at the same time, continue to make some smart decisions and remain solvent. I do not believe there is any reason why the markets are not providing us with a significant return here in the short term, but all I know is that many traders will get wiped out in the near future, and I want to prevent that from happening.
Please know that my previous warnings about a quick market correction still remain valid. Again, market conditions are strong, and I do not anticipate this happening in the near future. However, with the market strength, just know that one of these days will soon be extremely bearish, and it will take everyone by surprise. So capitalize on these strong market conditions, but at the same time, remain solvent and prepare to capitalize on a day like that.
Again, I do not expect this to happen soon, but I do anticipate it happening in the near future, so continue to capitalize on these market conditions while there is strength and confidence, but tread extremely lightly, mostly knowing that FOMC minutes are coming out on Wednesday.
To speak about those minutes, if I am being honest. One of two situations will happen due to those minutes being released. Either we are going to watch as the markets remain extremely choppy, minutes come back as expected, volatility drops, and markets remain neutral, relatively unimpacted, or at the other end of the spectrum, we will watch as markets remain confused until the release, and then make a large directional move, as the results of the minutes being released are different than expectations. Hopefully, markets will rally because of this, but I would not bet accordingly, mostly right now. I will talk more about how to allocate specifically for minutes later this week!
For my allocations today, I will say that I do not anticipate trading much at the time of writing this report, but obviously, what happens now versus what happens by the time markets open are two completely different scenarios. I will look to allocate when I am comfortable doing so, but at the moment, I am more confident in my ability to purchase equities at a heavy discount and hold them versus sitting back and attempting to quickly scalp and day trade the markets. If I am presented with an opportunity to scalp, I’ll obviously take it but just know that I am more confident in my holdings now than I am trying to navigate choppy 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, $INTC, $RIVN, $BA, $AIFF, $TSLA, $NVDA, $AAPL
LONG OPPORTUNITIES:
Long-Term Dividend - $GAIN / $JEPI
Long-Term Investment - $INTC / $RIVN / $BA
Economic News for 10/07/2024 (ET):
Consumer Credit - 3:00 PM
Notable Earnings for 10/07/2024
Pre-Market Earnings:
No Earnings Scheduled
After-Market Earnings:
Duckhorn Portfolio (NAPA)
Wrap up
Hopefully, market conditions will remain strong in the near future and provide us with opportunities to trade and realize significant gains in a short period of time. I am excited to see where the markets take us. It is just a matter of being able to capitalize on the short-term opportunities in these market conditions while remaining solvent and fluid while traders are in a state of skittish confusion.
Just tread lightly, make some smart decisions, and realize some gains. I am excited about this week, and I hope you are too!
Good luck trading, and let’s see a NEW all-time high this week!