HaiKhuu Daily Report - 10/31/2024
Good morning, AND HAPPY HALLOWEEN, YOU GHOSTS AND GOBLINS!!! I HOPE YOU ARE READY FOR A FUN DAY BECAUSE THE MARKETS ARE LOOKING SPOOOOOOOOOKY.
Markets are down at the time of writing this report, and conditions are not looking strong in any way, shape, or form. We have broken below the daily conversion line, and are in the process of breaking the daily baseline support. This is going to be the first “confirmation” of a reversal that we’ve seen since the sell-off that happened in August. As I have been warning everyone, I believe that the bearish momentum is going to be extremely short-lived, but it will kill many bulls in the process. It will be tough, but this bearish momentum is going to provide us with an amazing buy-the-dip opportunity. But just tread extremely lightly, as no one genuinely knows how much downside we should expect. Just wait for a confirmation of a reversal, where you are confidently entering into a position, and then we watch as the markets rip and rally from there!
So, let’s make the most of these conditions, realize some gains, and have an amazing time!
Good luck trading today, and let’s see if the markets have either tricks or treats in store for us!
The updated $SPY daily levels are as follows:
Conversion Line Resistance: $579.90
Baseline Support: $575.69
Psychological Resistance: $580
Daily Cloud Support: $559.49
Thoughts & Comments from Yesterday - 10/30/2024
Yesterday was a tough day for the overall markets. Conditions were difficult to navigate, the market was slowly bearish, and overall, it was just a gross time with no great opportunities to capitalize on bullish momentum. Hopefully, you all were able to survive yesterday's grossness because that was not a fun time.
We started the day with market conditions looking weak as $AMD dove on earnings, negatively impacting semiconductors. We were surprised to see that $SMCI’s auditing firm decided to quit working with the organization, scaring many individuals, as it fell roughly 30% in minutes. Thankfully, I will say that both plays provided us with an amazing opportunity to sell cash-secured puts at open and capitalize on the weakness in the markets.
$SPY opened the day trading at $581.41 and quickly dropped down to go on and make the official low of the day trading at $579.30. Conditions at the bottom were not great, but thankfully, it did provide us with an amazing opportunity to buy the dip as $SPY did quickly rally back after bouncing off $580, and we watched as $SPY made the official high of the day trading at $583.32. This was the only good opportunity to be bullish yesterday, as we did watch as $SPY slowly sold off throughout the entirety of the afternoon, watching as we slipped, and slipped, and slipped some more, but it is life.
We ultimately ended the day with $SPY trading at $580.01, right above that $580 support. Yesterday did provide us with some good trading opportunities, and I am just happy that we were able to capitalize on many great opportunities together. So, we will see what the markets ultimately do today and do what we can to make the most of these conditions.
S&P 500 Heat Map - 10/30/2024
Thoughts & Comments for Today - 10/31/2024
Today should be a fun time for the markets. With things looking spooky, many traders are going to find some great opportunities to trade, while others unfortunately get caught in a vicious cycle of over-trading and realizing losses. With the large bearish movement we are seeing in the pre-market session. Please continue to tread lightly and protect your bottom line, but at the same time, I do believe that there are going to be many great opportunities to capitalize on the momentum in the markets, as well as the placement.
As I have said before, I believe that we are about to see a significant bearish movement before the elections, which is followed up by a beautiful buying-the-dip opportunity, and that thesis is starting to come to fruition. Am I right? I don’t know; we will know here in a couple of days, but all that matters is that there are going to be great opportunities to trade in these conditions, and now it is just a matter of being able to consistently take advantage of the opportunities that are available to us.
Please continue to tread lightly in these conditions, though. Many traders will unfortunately get emotional, overtrade, and realize losses in these conditions. It is not wise to be overly aggressive, but I would also be sure to be in a place where you can continue to capitalize on these conditions with relative confidence.
There are going to be many traders who ask how far the markets realistically sell off from here. I do not want to be overly bullish or bearish, but I would love to see another 2-3% sell-off in the markets before I am confident in entering in the long lead into the elections. I am still holding the majority of the long positions that I have been holding despite exiting some of those plays recently. I do not advise attempting to be too aggressive attempting to load up on this dip, but I still do believe with 100% confidence that once we’ve found the true bottom, the markets will be overly bullish afterward as a result, but the question is how many traders are going to get wiped as a result of that movement.
One play that I am really loving right now is $INTC. I know many people will disagree with me on that sentiment, but in reality, with their earnings coming up today, I personally am not going to be selling any of my positions. Either $INTC continues to absolutely print, and traders are able to realize a significant amount of gains on their position that they’ve been holding, or $INTC drops and provides us with an amazing opportunity to purchase more shares. There is going to be no in-between, but regardless, I’ll be alright with the results. Obviously, I would prefer we ripped, but I wouldn’t be upset with a great dip-buying opportunity.
For my allocations today, I will say that I do plan on keeping things a little more simple today. I am not overly confident about these conditions, nor am I in a place where I want to attempt to be overly aggressive. With the bearish sentiment setting in, I am going to tread extremely lightly today and not attempt to force any position that I am not comfortable or confident in.
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, $META, $NVDA, $AMD, $TSLA, $RIVN, $INTC, $BA
LONG OPPORTUNITIES:
Long-Term Dividend - $GAIN / $JEPI
Long-Term Investment - $INTC / $RIVN / $BA
Economic News for 10/31/2024 (ET):
Personal Income - 8:30 AM
Personal Spending - 8:30 AM
Initial Jobless Claims - 8:30 AM
Notable Earnings for 10/31/2024
Pre-Market Earnings:
Uber (UBER)
Peloton Interactive (PTON)
Merck & Co (MRK)
SiriusXM Holdings (SIRI)
Estee Lauder (EL)
Kellanova (K)
Mastercard (MA)
Altria Group (MO)
Norwegian Cruise Line (NCLH)
Roblox Corporation (RBLX)
After Market Earnings:
Amazon.com (AMZN)
Apple (AAPL)
Intel (INTC)
Atlassian Corporation (TEAM)
ICF International (ICFI)
AES Corp (AES)
Eldorado Gold (AES)
United States Steel (X)
Amcor (AMCR)
SkyWest (SKYW)
Wrap up
Hopefully, we will watch as the markets provide us with another great opportunity to trade and realize some gains, but I will say that people are scared at the moment. Remember what I said prior where market conditions have been favorable for us, but at the same time, we’ve needed a correction. Watch for the selling to happen across the board, and then once you have the confidence to do so, look to buy the dip and have an amazing time.
I am excited about today, and I hope you all are too! So…
Good luck trading, and happy Halloween!