HaiKhuu Daily Report - 10/23/2024
Good morning, and happy Wednesday!
Markets aren’t looking terrible, but they are not looking the best. There is a significant amount of confusion across the board as a result of the general market momentum, so continue to protect your bottom line. We are seeing a lot of general weakness in the markets at the moment, so here is the real question. Do we show weakness and disregard it as we rally to a new all-time high? Or is this where we inevitably sell off.
Regardless of sentiment, a lot can happen in an extremely short period of time, but I am extremely excited to see where the markets will be able to take us in an extremely short period of time. Expect to see a lot of volatility, with many major organizations presenting their earnings over the next couple of weeks.
The big event that everyone will watch today is $TSLA earnings after hours. So, just accept the reality of the situation and make the most of it!
Good luck trading today, and let’s see where $TSLA takes us today!
The updated $SPY daily levels are as follows:
Conversion Line Support: $580.31
Baseline Support: $573.46
Psychological Support: $580
Daily Cloud Support: $548.83
Thoughts & Comments from Yesterday - 10/22/2024
Yesterday was an interesting and tough day to navigate for the overall markets. We started the day during the pre-market session with $SPY looking disgusting but ended the day with some relatively neutral overall momentum. It was a tough day for many, but it provided us all with some amazing opportunities to make back some unrealized losses and provided others with an amazing opportunity to allocate long.
We started the morning with $SPY opening at $581.14. Conditions were looking tough as $SPY was down roughly $2.50 from the previous close, but thankfully, markets only continued to move up after opening, displaying strength leading into the lunchtime lull, as $SPY hovered around $582. Conditions at the time were not great, as momentum was slow, we only recovered slightly, and the markets continually chopped around.
Thankfully, as volume started to come back into the markets, we watched as, after the lull, the markets went on to break out and rally from $582 to go on and make the official high of the day, trading at $584.50. Conditions were great with many opportunities to trade and realize some gains, but unfortunately, the momentum was not sustainable, as for the back half of the afternoon, market conditions kind of chopped around, where we officially ended the day with $SPY trading at $583.32. Conditions were not the best, but regardless, the markets dropped roughly $0.30 from the previous close or dropped approximately 0.05%.
Conditions could have been significantly better, and there was a lot of movement for the markets to remain relatively black. But welp, it is life. I hope you all had a wonderful time trading yesterday and have done what you could to realize a significant amount of gains! Congratulations to anyone who made the most of yesterday, and let’s see where the markets take us today!
S&P 500 Heat Map - 10/22/2024
Thoughts & Comments for Today - 10/23/2024
Today is setting up to be another fun day for the overall markets. But, as you all know, just because it is set up to be fun does not mean that it will be. Market conditions are strong, but we are seeing many signs of weakness across the board, and we have many major events and speakers coming up. With all of the news and earnings, I am expecting to see a significant amount of volatility and difficulty in navigating these conditions. Traders are going to be provided with some amazing opportunities to realize a significant amount of gains, but at the same time, many people are going to allocate incorrectly and, as a result of that, generate a significant amount of losses.
So, if you are attempting to trade today, look to make smart decisions and practice risk management. I know I must sound like a busted record saying this consistently, but just know that traders will have a significant amount of difficulty allcoating here, while others get lucky. If you can follow the trend and follow the momentum, you should have no problem actively trading, but that is easier said than done.
An interesting play for today is to look into selling cash-secured puts on $MCD and $QCOM. With $MCD having headlines about an E. Coli breakout linked to the Quarter Pounders, they dropped $30 on the headlines being released, but thankfully have moved back up afterward. I would not suspect that this downtrend continues, mostly as it is $MCD, and they have recovered roughly $10 from the bottom, but I believe that put premium will be through the roof today. You can also attempt to sell a CSP on $QCOM after news that $ARM threatens to scrap their chip design license with the organization. I would not advise attempting to sell a CSP on $QCOM but to each their own. I feel that selling the CSP on $MCD is going to be significantly stronger and provide us with better opportunities to enter with confidence. One event will cause people to have digestive problems for a week. One event can possibly cause an organization to drop another 10-20%. Take your risky pick, but there is, in my opinion, the low-risk, easy play or the high-risk, difficult play. So…. Take your pick.
For my personal allocations today, I will say that I do intend on being more passive in the markets today, but that I am extremely interested in selling a near-expiration contract on $MCD, and most likely will make it a highly OTM option spread. I am not expecting to get a significant return from this position, but I am expecting to be able to capitalize on the weakness in the organization and capitalize on the premium that is available as a result. Look for an entry on my $MCD spread around open, and watch as I scale in and out of that position within the day. Ideally, I will be able to collect as much premium as possible in the shortest amount of time, so I can get in, get out, and go get some free McDonald’s with the return!
Just note, that I will not be allocating towards $TSLA for earnings today. The expected move is $15 at the moment, so expect to see a significant amount of volatility and movement in the markets, and many people getting decimated from owning options on the organization. I may trade it when given an opportunity to do so, but I will not be allocating specifically for earnings.
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, $MCD, $QCOM, $RIVN, $TSLA, $NVDA, $INTC, $AMD, $GRYP
LONG OPPORTUNITIES:
Long-Term Dividend - $GAIN / $JEPI
Long-Term Investment - $INTC / $BA / $RIVN
Economic News for 10/23/2024 (ET):
Existing Home Sales - 10:00 AM
Fed Beige Book - 2:00 PM
Notable Earnings for 10/23/2024
Pre-Market Earnings:
Vertiv Holdings (VRT)
Boeing (BA)
AT&T (T)
Coca-Cola Company (KO)
NextEra Energy (NEE)
Thermo Fisher Scientific (TMO)
CME Group (CME)
General Dynamics (GD)
NextEra Energy (NEP)
Boston Scientific Corp (BSX)
After Market Earnings:
Tesla (TSLA)
T-Mobile (TMUS)
International Business Machines (IBM)
Celestica (CLS)
Newmont Mining (NEM)
Molina Healthcare (MOH)
ServiceNow (NOW)
United Rentals (URI)
Lam Research (LRCX)
Whirlpool (WHR)
Wrap up
Hopefully, market conditions continue to become more favorable for us, but as $SPY comes down to test the daily conversion line support, bullish sentiment is weakening, and people are getting into a state of confusion. Please continue to tread lightly and take advantage of the opportunities that are being presented to us. There are many opportunities to capitalize on CSPs today, including both on $MCD and on $QCOM. So take advantage of the opportunities that are being presented to us, and make the most of these conditions!
Good luck trading, and let’s have an amazing time!