HaiKhuu Daily Report - 11/14/2024
Good morning, and happy Thursday! Man, this has been an amazing week for the markets, with significant bullish momentum and opportunities to actively trade! I hope you all had a wonderful time and were able to realize significant gains throughout the entire week. This week has been awesome for me, and I hope you feel the exact same way. Market conditions have remained optimal, and opportunities have continually been presented to us!
I do want to warn you all that, again, market conditions are slowing down at the moment after $SPY has rejected $600, so please continue to tread lightly and practice safe risk management. We have major economic news, and conditions can shift extremely easily in either direction. We can easily break out and continue to rally as $SPY breaks above that $600 resistance level, or if the markets start coming down, we can sell off extremely quickly. I know that I personally have sold off a significant amount of my portfolio, where the large majority of my portfolio is currently in cash, waiting to be allocated in these conditions. The question now is where do I allocate it and when? I have no clue, but I will let you all know once I do!
This will be a fun time trading today, so good luck trading, and let’s see where these market conditions take us!
The updated $SPY daily levels are as follows:
Conversion Line Support: $584.03
Baseline Support: $584.03
Psychological Resistance: $600
Daily Cloud Support: $563.53
Thoughts & Comments from Yesterday - 11/13/2024
Yesterday was a rather interesting time for the markets. There was a significant amount of volatility where traders could easily trade in both directions with relative confidence, but it is just a matter of being able to capitalize on these conditions with both comfort and confidence. Anyone who was in $RIVN with us watched as the organization rallied 25% at open, while anyone who was watching $BA with us watched as they made a NEW 52-week low. It was an interesting time, with opportunities being presented to us, and it was just a matter of how you decided to allocate!
So, we started the day with $SPY opening at $597.36. Conditions at the opening were alright, and we watched as $SPY dropped extremely quickly to go on and make the official low of the day, trading at $594.97. Conditions at the bottom were terrible, but we did watch as market conditions strengthened slightly after reversing at the bottom, rallying throughout the lunchtime lull and pushing until the early afternoon, going on to make the official high of the day trading at $599.23. Conditions at the top were nice, as $SPY did rally roughly $5 from the bottom, but in the back half of the afternoon, we did watch as the momentum slowed down.
$SPY went from trading at $599 to dropping to $597, bouncing quickly during power hour before selling off once again, where we officially ended the day with $SPY trading at $597.19, up $0.29 for the day, or up roughly 0.05%. Honestly, I would say that yesterday was a relative wash for the majority of the people who were investing in the markets, but traders who were capitalizing on the momentum had a great time. There were sketchier parts of the day, but thankfully, opportunities were amongst us to realize both gains and losses! So, hopefully, you all were able to realize gains with confidence and enjoy the day. Let’s see what the markets have in store for us today and prepare accordingly!
S&P 500 Heat Map - 11/13/2024
Thoughts & Comments for Today - 11/14/2024
Today is setting up to be an interesting time. With the strength in these market conditions, it is tough to be bearish, but the longer it takes $SPY to break through $600, the more bearish I am becoming in the short term. As I have stated earlier, the majority of my portfolio is actively held in cash at the moment, and I do not anticipate allocating it long in the markets anytime soon. I want to find a small correction in the markets before I decide to allocate anywhere, but the question now is, what happens between now and when I allocate? No one knows where the markets are going, but from what we are seeing, momentum is slowing down, traders are feeling less comfort, and traders are in a state of greed and confusion. My recommendation for all of you is to remain level-headed and start to protect your portfolio where possible.
As I have said before, I would love to see a 3-5% minor correction on $SPY ($570-580 range) so that I can purchase again with confidence. However, until then, I feel that a lot of people are going to get more uncomfortable attempting to allocate here and that others are going to start selling their positions as they feel they need to exit as their unrealized gains slowly start to fade away.
I am not saying any of this to attempt to scare anyone, but I am simply just saying this so we can continue to capitalize on the markets here in the short term but prepare for the inevitable future. As I’ve said before, market conditions could easily shift, and $SPY decides to rally past $600 on good economic news, strengthening conditions, or just watching a general breakout, but assuming that market conditions remain rational from here, we are seeing the signs of a reversal setting up on a larger scale. $SPY has rejected $600, we are starting to form a weak bearish TK cross under on the daily chart, and traders are feeling less confident. Watch out for cryptocurrencies. Once we start to see a rejection coming directly from crypto, I feel that will be the catalyst that people will watch and be fearful of. So continue to practice risk management, protect your bottom line, and make some smart decisions.
There are a couple of plays that I think are extremely risky in these conditions but have a great risk-to-reward ratio, which is $SAVE and $SMCI. $SAVE is on the verge of announcing bankruptcy. Assume that this organization is going to go under, and anyone caught holding the bag will assume a 100% loss on the position, but if you are attempting to trade, we can see significant volatility and opportunity, assuming you catch the dip perfectly. And the other risky play that I am interested in is $SMCI. With them continually delaying earnings, and at risk of being delisted, we are going to see continual volatility in the organization. Assuming you are able to buy the dip perfectly, you should be presented with many great opportunities to scalp and trade here in the short term. Traders are going to have a sketchy time attempting to trade either of these organizations, but compared to many organizations in the markets, have the highest upside potential for a significant return. Just remember, this is one of those high-risk, high-return scenarios that I do not advise the majority of individuals to attempt to capitalize on, but if you’re a confident enough trader to scalp and day trade, then do so and make the most of these market conditions!
For my allocations today, I will say that I really do not plan on trading today. This has been an amazing week for me, and I unfortunately emotionally traded $BA yesterday, resulting in a minor loss. I am upset with myself for the way that I handled that position and overreacted, so I do need to take a small mental break from allocating, and this is kind of the perfect time as, again, the majority of my portfolio is currently held in cash. This is going to just be a one or two-day mental break, but obviously, I will still be watching the markets and allocating when I have the confidence to do so. If anything, I might gamble a couple of dollars on $SAVE today. But I will still call out opportunities and be working during that time! So thank you all for understanding, and congratulations again to anyone who was able to sell their $RIVN position with me yesterday for +30%!!!
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, $SAVE, $BA, $SMCI, $RIVN, $TSLA, $NVDA, $INTC, $AAPL
LONG OPPORTUNITIES:
Long-Term Dividend - $GAIN / $JEPI
Long-Term Investment - $INTC / $RIVN / $BA
Economic News for 11/14/2024 (ET):
Initial Jobless Claims - 8:30 AM
Core PPI - 8:30 AM
Notable Earnings for 11/14/2024
Pre-Market Earnings:
Walt Disney (DIS)
Intuitive Machines (LUNR)
JD.com (JD)
NICE Ltd. (NICE)
Advance Auto Parts (AAP)
Bilibili (BILI)
NetEase (NTES)
Sally Beauty Holdings (SBH)
Nomad Foods (NOMD)
After Market Earnings:
Applied Materials (AMAT)
AST SpaceMobile (AST)
Post Holdings (POST)
Akoya Biosciences (AKYA)
Rekor Systems (REKR)
Consolidated Water (CWCO)
GameSquare Holdings (GAME)
Wrap up
Hopefully, market conditions only continue to get better and rip from here, but just remember to tread extremely lightly as these conditions are starting to weaken. Obviously, market conditions can shift at any time, and we can break out with relative ease, but this is one of those scenarios where we should continue to practice safe risk management. I am more confident in the downside from this point. Watch out for $SPY $600, and if we are not able to break above that resistance, we will continually come down until we find support. So, practice risk management, realize gains, and be diligent in these conditions.
Good luck trading, and let’s see what the markets have in store for us today!