HaiKhuu Daily Report - 10/18/2024
Good morning, and happy Friday! This has been an extremely quick week for the markets, and I hope you all are feeling amazing, and are ready for today! With the way that the markets are shaping up, this is looking like it is going to be a fun day that hopefully flies by, and we all have an amazing time in the process!
There will be many opportunities to trade presented to us, but let’s be honest. Life is a cruel mistress sometimes. So please be careful, mostly if you intend to be bullish in these market conditions. Opportunities will be amongst us, but please continue to tread extremely lightly, as anything can happen in an extremely short period of time. I think there is an extremely high likelihood that market conditions start to become harder to navigate, and I do expect to see some bearish momentum soon.
Continue to capitalize on these market conditions while they are favorable, but make some smart decisions as many traders will have a great time, while others are going to have a difficult time remaining consistent today.
So, good luck trading today. Make some smart plays, and let’s end this week strong!
The updated $SPY daily levels are as follows:
Conversion Line Support: $576.38
Baseline Support: $569.43
Psychological Support: $580
Daily Cloud Support: $546.43
Thoughts & Comments from Yesterday - 10/17/2024
Yesterday was a tough day for the overall markets. Conditions weren’t great if I am just being honest. We saw a significant amount of bearish momentum, and opportunities were amongst us to realize gains, but it was difficult to do that confidently. Many traders, fortunately, did not lose a significant amount, but we watched as many gains were quickly squandered.
We started the day with $SPY opening at $585.97, above the previous all-time high, and within that same candle, we watched as $SPY made the official all-time high, trading at $586.12, and never looked back. We instantly dropped at open, going on from trading at the new all-time high at open to being black for the day at 11 am EST, losing 100% of the gains that were generated before the markets opened. This was an unfortunate time, but thankfully, we did watch as the markets recovered beautifully, bouncing from the previous close price, going on to make relatively high trading right above $584, quickly snapping back during the lunchtime lull.
Markets remained in that area for a long while, continually throughout the beginning of the afternoon, but during the back half of the afternoon, is when the markets decided to drop again and sell off, leading into close. We went on to make the official low of the day with $SPY trading at $582.16, down significantly from open but down only slightly from the previous close, and we officially ended the day with $SPY trading at $582.35, up $0.05 for the day, or up 0.0086% overall.
If I am being honest, yesterday was a beautiful day to start with, but I was met with a significant amount of difficulty and bearish momentum. Hopefully, losses did not stack up yesterday, and it was unrealized gains that were lost, but you know how it is in these general market conditions. Opportunities will be amongst us to realize gains and generate losses. Regardless. As long as you did not wipe out yesterday, now it is the time to make the most out of today!
S&P 500 Heat Map - 10/17/2024
Thoughts & Comments for Today - 10/18/2024
Today is setting up to be an extremely interesting time for the overall markets. With the conditions that are now being presented to us, I am expecting to see more volatility and opportunity presented to us. I expect to see choppier and more difficult conditions to navigate today, but a great saying about tenacity is that smooth sailing never made an experienced sailor. You will not become a good trader by being able to get lucky with your timing and allocate at a bottom with a significant amount of bullish momentum.
If market conditions continue to strengthen, I do not see a reason why we should not watch as $SPY rallies to a new all-time high. At the same time, I am really expecting to see a significant amount of opportunity presented to us in these conditions. I would not expect overly bullish conditions and honestly expect a lot of chop. But if we get a favorable surprise, mostly with China numbers looking strong and $NFLX rallying up beautifully, we could be in for a fun ride.
I will say again that you should continue to practice risk management in these conditions. I am expecting to see a significant bearish movement in the markets in a short period of time, and as a result, I believe in the near future, anyone who is not protecting their bottom line while purchasing here at the all-time highs will be presented with a rather interesting, and depressing day for their portfolios. Again, I just want to say that I am not saying this to be bearish, but more so saying this to provide everyone with a warning for what is coming up. The harder the markets rally, the more quick and sudden this random drop becomes. I am not expecting this drop to happen today, and I am not expecting it to come in the foreseeable future. All I know, and can say, though, is that eventually, one of these days, I expect to see a significant amount of bearish momentum that will be followed by an amazing buy-the-dip opportunity as everyone is freaking out.
For those who are attempting to trade today, look to simply follow the market momentum. Conditions are going to be choppy, so either look to quickly scalp some short-term movements or look to allocate into a day trade when you are confident doing so, and just do what you can to realize gains as quickly as possible. I think it will be more difficult to navigate these market conditions today, but at the same time, there is no reason at all that we should not do what we can to maximize our profit potential.
For my personal allocations today, I will say that I do not intend on trading too much today. With the beautiful week that we’ve seen in the markets, I am not overly ambitious to try and force any positions, but I will say that if given an opportunity to allocate LONG in the markets. I will look to consider it and take it. I purchased more shares of $RIVN yesterday and have purchased more leaps. This is a long speculative allocation as I am investing in the company, and at the same time, I have purchased more $AIFF, intending to attempt to flip it at this relative bottom. Short sellers on $AIFF, in my opinion, have attempted to kill the momentum at the top despite having great news. So, I will look for another opportunity to capitalize on those short sellers, as they will inevitably have to cover one of these days. So be on the lookout for when I add more positions to my portfolio or remove something from the list!
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, $AIFF, $GRYP, $INTC, $RIVN, $NVDA, $TSLA, $AMD
LONG OPPORTUNITIES:
Long-Term Dividend - $GAIN / $JEPI
Long-Term Investment - $INTC / $RIVN / $BA
Economic News for 10/18/2024 (ET):
Housing Starts - 8:30 AM
Notable Earnings for 10/18/2024
Pre-Market Earnings:
Comerica (CMA)
American Express (AXP)
SLB (SLB)
Procter & Gamble (PG)
Autoliv (ALV)
Fifth Third Bancorp (FITB)
Regions Financial (RF)
Ally Financial (ALLY)
Simmons First National (SFNC)
Wrap up
Hopefully, market conditions only continue to get more favorable for every one actively trading and involved with the markets today. Conditions could obviously be significantly better, but at the same time, they could also get significantly worse. So tread lightly and make some smart plays, but at the same time, do what you can to maximize your profit potential and make the most out of these conditions. Many traders are going to realize a significant amount of gains today, so have some fun and realize some gains!
Good luck trading, and let’s end this week with some EASY realized gains!