HaiKhuu Daily Report - 10/08/2024
Good morning, and happy Tuesday! $SPY has broken below the daily conversion line support, and I hope you traders are having a wonderful time and are extremely excited about the opportunities that are going to be presented to us in these market conditions. Please remember that traders right now are skittish and are both watching and waiting for FOMC Minutes to be released tomorrow. It will be difficult to navigate these conditions in the short term, but opportunity will be available. So please continue to capitalize on these market conditions, but tread lightly as these conditions will get interesting.
Hopefully, market conditions will improve today, but with everything going on, including the hurricane, news about the Middle East, and general investor fears, as always, please make sure to tread lightly and practice safe risk management today.
And again, final warning. FOMC minutes will be released TOMORROW at 2 PM EST.
Good luck trading today, and let’s see where the markets take us!
The updated $SPY daily levels are as follows:
Conversion Line Resistance: $569.99
Baseline Support: $557.08
Psychological Support: $570
Daily Cloud Support: $547.99
Thoughts & Comments from Yesterday - 10/07/2024
Yesterday was a disgusting and bloody day for the overall markets. Conditions were tough unless you were in $SMCI or $NVDA. Traders had opportunities to capitalize on the markets, but it was disgusting and generally extremely inconsistent if you attempted to trade. Hopefully, you all realized gains trading yesterday, but looking at the heat map, it looks rather disgusting.
So, we started the day with $SPY opening at $571.30 and watched as we remained within a $1 range from open for the majority of the day. We watched as $SPY went on to make the official high of the day, trading at $571.94, approximately an hour into the trading day, but that was all of the bullish momentum we got. We watched as $SPY chopped around and trickled for the majority of the day, only breaking below the $570 support level in the back half of the trading day, and this is where things started to become bearish.
During the back half of the trading day, $SPY started to sell off, and we sold off extremely quickly; where we watched as $SPY quickly went from trading at $570 to quickly selling off, going on to make the official low of the day trading at $566.64, dropping approximately $4 in roughly an hour. Thankfully, we did see some slight recovery into the close. We officially ended the day with $SPY trading at $567.80, down $5.18 for the day or approximately 0.9%.
I will say that is one of the tougher trading days that I’ve seen in the markets. At least on bloody days in the markets, there is momentum to keep everyone on their toes, but with $SPY slowly trickling down for what felt like forever during the beginning of the trading day, it was rather unfortunate and honestly disgusting as traders who attempted to allocate, consistently were chopped around like there was no tomorrow, but hey. It’s life and the markets. We will see where the markets take us from here and make the most of it!
S&P 500 Heat Map - 10/07/2024
Thoughts & Comments for Today - 10/08/2024
Today is setting up an interesting time for the markets. After the bearish momentum we saw yesterday, we are either about to see a continuation of the disgusting conditions or a beautiful recovery. Ideally, we recover and rally from here, but what the markets decide to do and what they actually end up doing are two completely different stories that we have to account for.
I would not advise taking on a significant amount of risk in these market conditions, but I would look to take advantage of these opportunities. I believe that many organizations were oversold yesterday, providing us an opportunity to buy the dip, but my one concern is that this bearish momentum can easily be sustained, and we can continue to drop with ease, mostly leading to FOMC. So please continue to remain smart and solvent in these conditions, but do what you can to take advantage of the opportunities that are being presented to us. Many traders will be able to realize a significant amount of gains with ease, while others, unfortunately, have a terrible time. If you attempt to trade these conditions, please tread lightly and practice safe risk management.
In my opinion, the best ways to capitalize on these conditions are either by simply allocating into the markets and holding long plays or by being extremely quick with your allocations and consistently realizing gains. Each allocation style has upsides and downsides.
Allocating long into the markets when everything is at a discount allows you to navigate short-term chop with relative ease without worrying about the small intraday movements that stress many traders out. However, the downside is the general risk exposure you have against the markets, mostly if the markets are displaying a sign of weakness in the short term. Going long is great until the dip keeps dipping. So, look to allocate to organizations that you are confident in while the price is down and capitalize on the market conditions.
Scalping, on the other hand, is the most consistent way to generate either realized gains or losses. Scalping provides you an opportunity to capitalize on short-term momentum in the markets, where you are not able to realize a significant amount of gains while holding, but because we are scalping, it at least provides us an opportunity to realize gains when there is that short term opportunity, and simply move on afterward. This is great, assuming everything works out. But in the case markets continually chop around, with no direction, IE, the majority of the day yesterday, you will unfortunately not be presented with many opportunities to realize gains, but for the majority of the day, you’ll get chopped around, and realize losses while consistently being stopped out in the process.
Regardless, though, life is good, and market conditions are looking extremely favorable for us. I am excited to see where these market conditions take traders like us, and I am excited to see what opportunities will be presented today. For my allocations, I will say that I do intend to remain relatively passive in the market conditions today. With the way that everything has gone down, I am expecting to see a lot of traders having difficulties, and I do not want to partake. I’ll obviously attempt to take advantage of these conditions while I can, but at the same time, I do not want to do anything that may jeopardize my portfolio. So I’ll attempt to scalp and trade, but unless there is a major shift in the market direction and momentum, I’ll have some fun but not attempt to do anything overly risky.
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, $BA, $RIVN, $AIFF, $NVDA, $SMCI, $TSLA, $AMZN
LONG OPPORTUNITIES:
Long-Term Dividend - $GAIN / $JEPI
Long-Term Investment - $INTC / $BA / $RIVN
Economic News for 10/08/2024 (ET):
Trade Deficit - 8:30 AM
Fed Bostic Speaks - 12:45 PM
Notable Earnings for 10/08/2024
Pre-Market Earnings:
PepsiCo (PEP)
Accolade (ACCD)
After-Market Earnings:
Saratoga Investment Corp (SAR)
Wrap up
Hopefully, markets decide to rally today, but please continue to tread lightly and practice safe risk management. Markets can easily push, but after the weakness we saw yesterday, anything can genuinely happen. Do not forget that Bostic is speaking at 12:45 PM EST, so prepare accordingly, mostly if you are attempting to trade around that time. Let’s realize some gains today and have some fun.
Good luck trading, and let’s see where $SPY takes us today!