HaiKhuu Daily Report - 11/22/2024
Good morning, and happy Friday! I hope you all have some fun plans set up for this weekend because this week has absolutely flown by. Congratulations to everyone who has realized a significant amount of gains and has survived this week! This should be a great day for the overall markets, but I do have some generalized concerns at the moment about market strength.
Markets are looking great overall, but the pre-market session, at the time of writing this report, is not looking good. Traders are concerned due to the large wicks over the previous couple of days in the markets and, situationally, are more hesitant to allocate at these levels with confidence. Please tread lightly if you are attempting to allocate into these market conditions, but do what you can to take advantage of the situation. Markets are going to be extremely inconsistent at this level, but those inconsistencies provide us with uncomfortable trading conditions, but great opportunities to trade and realize some gains.
So, make some smart decisions, take advantage of this market inconsistency, and realize some gains!
Good luck trading today, and see where $SPY ends up!
The updated $SPY daily levels are as follows:
Conversion Line Support: $592.02
Baseline Support: $584.03
Psychological Support: $590
Daily Cloud Support: $569.28
Thoughts & Comments from Yesterday - 11/21/2024
Yesterday was a confusing day for the overall markets. Traders were presented with extremely volatile conditions, and it took a while to pick a direction. However, everyone should have ended the day beautifully and had a great time in the process.
So, we started the day during the pre-market session; $NVDA was down roughly 3%, conditions looked weak, and market confidence was relatively low. But, quickly throughout the morning, we watched as $NVDA recovered and rallied with $SNOW and analyst upgrades, going green from the night prior, and opened the day at a new all-time high, trading at $152.89.
$SPY started the day at $593.39, but right after opening, markets dove, continually chopping around and making the official low of the day, trading at $587.45. Conditions at the bottom, honestly, were not that bad and provided us all with an amazing opportunity to allocate at the bottom and ride the beautiful momentum up. (Shout out to John for nailing it on the head on the perfect reversal alert yesterday)
We watched as markets ripped going into the lunchtime lull, hovering around $592 and breaking out once volume came back into the markets, and rallied throughout the entire afternoon, where we watched $SPY make the official high of the day at $595.12, before coming down slightly into close, where we ended the day officially at $593.67, up $3 for the day, or up roughly 0.5%. It was a fun day with insane opportunities to trade and realize a significant amount of gains.
Let’s see where markets take us today, and have some fun!
S&P 500 Heat Map - 11/21/2024
Thoughts & Comments for Today - 11/22/2024
Today should be a fun day for the markets, but I think there’s a very high likelihood that some people have difficulties remaining consistent. With the way that the markets have moved over the previous couple of trading days, it would not surprise me to see a significant amount of weakness across the board and people selling off due to a lack of comfort in these conditions. Do I believe that they are wrong for selling? 100%, but this is one of those scenarios where I understand where their concerns are coming from, mostly as there has been a significant amount of volatility across the board.
If you are attempting to trade today but are less comfortable or confident in your ability to trade, then please listen to what I am about to say. Comfort in the markets comes from multiple factors. Time & Experience in the markets provide you with the most comfort because you know what you are getting yourself into and understand the risks you are taking, but you can’t just tell someone “time” and expect them to become more comfortable with the markets. So, if you have been feeling the heat and have not liked these conditions, my suggestions are threefold.
Scale down your position. You are taking on too much exposure, and as a result, the movements you are seeing are higher than your risk tolerance, and it results in you cutting your position for a loss early due to your draw-down potential
Take safer plays. If you are allocating into extremely volatile organizations like $NVDA, $TSLA, or $MSTR, you are going to see elevated volatility from these higher beta stocks, making it extremely difficult to remain consistently profitable and confident in your position
Slow down your timing. It is a lot easier to be right on a larger timeframe than a smaller timeframe. I can confidently say that $ABC company, which is fundamentally solid and undervalued, is a great purchase, knowing that inevitably, it is going to bounce back versus allocating in the hopes the markets move in your favor over the next three minutes.
Obviously, these conditions have to consistently remain favorable for us to capitalize on them with comfort and confidence, but risk management and feeling confident in your ability to navigate these conditions matter the most. Opportunities will be consistently provided to us in these conditions, and it is up to you to be able to navigate with confidence.
For my allocations today, I plan on being relatively more passive. I’ve been slowly deploying my capital into organizations that I believe are heavily undervalued right now, including $SHAK, $DG, and $RIVN. I’ll be holding these here in the short term while I am personally less confident in the consistency of the markets. I’ll still find great opportunities for everyone to trade, but just know that I personally do not intend on trading as much today, as a result of these conditions. I’ll sit back, relax, and enjoy my Friday with you all!
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, $SMCI, $GOOGL , $GRYP, $NVDA, $RIVN, $TSLA, $BA, $DG
LONG OPPORTUNITIES:
Long-Term Dividend - $GAIN / $JEPI
Long-Term Investment - $DG / $SHAK / $BA / $RIVN
Economic News for 11/22/2024 (ET):
Services PMI - 9:45 AM
Manufacturing PMI - 9:45 AM
Consumer Sentiment - 10:00 AM
Notable Earnings for 11/22/2024
Pre-Market Earnings:
Global Blue Group (GB)
Wrap up
Hopefully, market conditions only continue to rally and provide us with opportunities to remain comfortable and confident during these times. I would go into today excited, knowing that market conditions are going to be extremely volatile and present us with great opportunities to trade and even better opportunities to realize some gains. So please make sure to practice safe risk management and capitalize on these conditions with confidence!
Good luck trading, and let’s end this week strong!!!