HaiKhuu Daily Report - 11/21/2024
Good morning, and happy Thursday!!! Wow, what a rather disappointing time for $NVDA, people trading $NVDA, and everyone in the market. With this being the last major organization with earnings, many traders are going to get exhausted quickly until the next major round of volatility starts again.
Tread lightly today, as there is an extreme sell-off risk at these levels. With people not overly bullish leading into today, that means we are about to see some bearish momentum, and now the question is how much will the markets sell off? Do we take a quick lil dip and reverse? Or do we smash through daily support and watch as $SPY just absolutely dives?
No one knows where the markets are headed conditionally, but it will be a fun time to watch what happens. Continue to tread lightly and practice risk management, but just know there’s a lot that can happen in an extremely short period of time, so please be cautious and protect yourself.
Good luck trading today, and let’s see how $NVDA impacts the markets!
The updated $SPY daily levels are as follows:
Conversion Line Resistance: $592.02
Baseline Support: $584.03
Psychological Support: $590
Daily Cloud Support: $569
Thoughts & Comments from Yesterday - 11/20/2024
Yesterday was a rather interesting time for the overall markets. Conditions were slow and choppy, like an old Italian grandma making a good tomato sauce. There were many opportunities to attempt to trade, but no great opportunities that traders were overly confident by.
So, we started the day with $SPY looking alright, opening at $590.32. Conditions were mild at open, but quickly weakened and displayed difficulties sustaining above $590. As a result of this, we saw a significant amount of bearish momentum extremely quickly, watching as $SPY quickly sold off and went on to make the official low of the day within the first hour, trading at $584.64. Conditions at the bottom were tough as the selling only continued, but thankfully, we did watch as market conditions slowly moved up throughout the early afternoon, but conditions, holistically, remained relatively neutral, choppy, and weak.
Thankfully, leading into power hour, market conditions did get significantly stronger as $SPY started to reverse from the bottom, where markets started to move up leading into power hour, and power hour was extremely bullish, recovering all of the losses that were generated, where we officially ended the day with $SPY trading at $590.50, up $0.20 for the day, or up 0.03% overall. This does not seem like much, as it isn’t, but it means that $SPY recovered over $5 from the bottom, and conditions are looking significantly better than they were before. So we take it and run and see where the markets take us today!
Congratulations to anyone who was able to navigate the choppy conditions of yesterday, and congrats to those who capitalized on the bullish momentum towards the end of the day! Let’s see where the markets take us today, and have some fun!
S&P 500 Heat Map - 11/20/2024
Thoughts & Comments for Today - 11/21/2024
Today should be a fun time for the markets. As I was saying before about $NVDA, the sentiment that is being derived from their earnings is going to absolutely slaughter many traders. Anyone who was in any option play, regardless of direction, got slaughtered. People will over-trade $NVDA today and get slaughtered; people who buy and hold $NVDA today, you guessed it… will get slaughtered. There are going to be many opportunities to trade today, but my genuine fear for the markets at the moment is the idea that $NVDA had great earnings but was not able to beat the market’s notions of where they wanted $NVDA to be and as a result of the underlying conditions, traders are getting slaughtered across the board. Be careful because there is an extremely high risk that $NVDA dives today, due to the lack of momentum and as people sell of their position. There is a reality out there that $NVDA rallies perfectly from this point, but at the same time, the odds are not in favor of that.
If you are attempting to take on some risk today, following the momentum on $NVDA, in my opinion, is going to be extremely risky, but it provides us all with an amazing opportunity to capitalize on these market conditions. If you are quick with your play, you should have zero problem allocating into $NVDA for a scalp, but I would be cautious about holding a position in the organization unless you are following the trend. If I were to play $NVDA, due to the underlying bearish sentiment that I have at the moment, I would not advise anyone to be overly aggressive but wait until $NVDA is at a point where it is oversold on an intraday basis and ride the position long. Set a stop at break even to limit your downside risk, and then simply just pray that it rallies with you. It’s that simple, as bad as it sounds, but it’s just life. We have fun and have a great time in the process. It’s just that easy.
If you don’t want to trade $NVDA, the same sentiment kind of stands where $NVDA is going to be such a negative hamper to the markets that everyone should be extremely careful and cautious while attempting to allocate in these conditions. $NVDA is going to be the leading indicator for where the markets take us. Obviously, there are going to be certain organizations that do not follow suit, but I am under the assumption that the large majority of equity positions today are going to be negatively impacted as a result of $NVDA’s movement yesterday.
For my allocations today, I will say that I want to take on some risk and attempt to trade $NVDA when given an opportunity to do so, but at the same time, I am extremely skeptical of these market conditions. If you could not tell by now, I am bearish on the day as a result of $NVDA earnings. We might see a beautiful reversal on an intraday basis, and I hope that happens, but at the same time, these conditions are so difficult to predict with certainty that you should just practice risk management and tread extremely lightly.
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, $NVDA, $SHAK, $DG, $BA, $RIVN, $AIFF
LONG OPPORTUNITIES:
Long-Term Dividend - $GAIN / $JEPI
Long-Term Investment - $INTC
Economic News for 11/21/2024 (ET):
Initial Jobless Claims - 8:30 AM
Philadelphia Fed Manufacturing Survey 8:30 AM
Existing Home Sales - 10:00 AM
Notable Earnings for 11/21/2024
Pre-Market Earnings:
Baidu (BIDU)
Deere & Company (DE)
BJ's Wholesale Club (BJ)
iQIYI (IQ)
KE Holdings (BEKE)
Warner Music Group (WMG)
After Market Earnings:
Elastic N.V. (ESTC)
Gap (GAP)
Ross Stores (ROST)
Intuit (INTU)
NetApp (NTAP)
UGI Corp (UGI)
Wrap up
Hopefully, market conditions will be favorable for us. Conditions are going to be interesting as a result of $NVDA earnings, causing a lot of pain across the board. Many traders are going to be confused about their sentiment but just tread lightly as I believe that as a result of $NVDA not smashing earnings, the underlying tone at the moment is weak, bearish conditions. Make sure to protect your bottom line and practice safe risk management. This will be a fun day full of opportunity and a day full of pain. Take your pick, and stick with it.
Good luck trading, and let’s see what $SPY ends up doing!