HaiKhuu Daily Report - 12/06/2024
Good morning, and happy Friday! Market conditions are looking beautiful; traders are confused but optimistic, and this is going to be a great day for the markets. I will warn that conditions are going to be difficult to navigate, but opportunities will consistently be amongst us to trade and realize gains. Please continue to tread lightly today and practice safe risk management.
I will say that despite being bullish am a little more skeptical about the market conditions today, so protect your bottom line, do not be overly aggressive in these market conditions, and make smart allocations. If conditions are not favorable, do not force any positions or overtrade. Simply hold strong positions you are confident in and let the position adjust accordingly.
This is going to be a fun time for the markets, so let’s see where things take us and hopefully see a new all-time high on $SPY!
Good luck trading, and let’s make the most out of today!
(Also, side reminder: I have a meeting with the elementary school we are sponsoring today, and will be doing their holiday event next Friday)
The updated $SPY daily levels are as follows:
Conversion Line Support: $600.82
Baseline Support: $588.18
Psychological Support: $600
Daily Cloud Support: $577.98
Thoughts & Comments from Yesterday - 12/05/2024
Yesterday was an interesting and kind of rough day for the overall markets. Conditions were not gross, but we did not have great opportunities presented to us as momentum was slow, and traders got chopped around. However, $SPY did make a new all-time high, so we get to at least sit back, relax, and enjoy a wonderful time attempting to trade!
So, we started the day with $SPY opening at $607.58. Conditions were relatively neutral at open as $SPY really did not do much overnight or during the pre-market session, and we watched as $SPY remained relatively neutral around that level, testing the previous all-time high but not successfully breaking over that level. Within the first hour of the day, the markets slowed down and sold off slowly, where we went on to make a relative low trading right below $607, but thankfully, leading into the lunchtime session, we were able to watch as $SPY rallied from the bottom and went on to make the official high of the day trading at $608.46.
After making the official high of the day, we watched as the markets came down slightly, signaling the bearish momentum into the end of the day. We officially ended the day with $SPY making a low trading at $606.31 and recovering ever so slightly to end the day trading at $606.66, down $1 for the day or down roughly 0.16%.
It was a tough day for the markets and an even rougher day, depending on what you allocated into yesterday. Hopefully, you all were able to capitalize on the market conditions and remained relatively solvent while attempting to trade. Opportunities were amongst us, but it was by far one of the most difficult days I’ve seen recently to attempt to trade on an intraday basis due to the lack of momentum and sheet chop. Regardless, though, life moves on, and so do the markets!
S&P 500 Heat Map - 12/05/2024
Thoughts & Comments for Today - 12/06/2024
Today should be a fun time for the markets, but if I am just being honest, I am extremely skeptical about these conditions. Markets are looking great, with $SPY at an all-time high, but with cryptocurrencies starting to drop across the board, we are starting to see weakness in the crypto markets. Yes, there is no “direct” correlation between the crypto and equities markets, but at the same time, this is one of those scenarios where, realistically, the slight weakness from the crypto market is going to directly impact retail trading confidence, and as a result of that, we are going to see some negative market sentiment. I am not saying that the markets are about to dive or sell off, but I am advising people to remain skeptically bullish and realistic with their expectations, as there is an extremely high likelihood that we are about to watch some slight selling across the board.
I would love to be wrong about my sentiment and watch the markets rally from here, but this is just one of those scenarios where I would rather warn you all and be wrong than not warn any of you. As a result, we watch as the markets sell off and traders get slaughtered.
One thing that I really do want to emphasize today is proper risk management. It’s obviously easier to simply say, “Practice safe risk management,” but please do what you can to minimize your risk potential and exposure. But here are a couple of tips I can give you about risk management!
Pick your winners confidently - Enter into organizations you believe will go up, and have justification for your reasoning
Cut your losers early - In the case, a position does not go as expected, consider cutting your position. This does not mean if a stock drops $0.02, your position is dead in the water, but more so, if the major support levels are broken, simply get out
Scale in and out of your positions - Instead of entering 100% of your position initially, scale in slowly by purchasing 25%-50% of your total allocation, so you have room to average down when necessary. Yes, this does limit your upside potential in the case that you watch your position rally perfectly but only have 25% exposure. This will sting, but what happens is, more times than not, you will be able to get a better average on your position than what you initially had and will do better over time.
Scale in accordingly for your portfolio. I never recommend allocating more than 10% of an entire portfolio to a single position. This is clearly a rule that I personally consistently break, and I know many of you do, too, but if you are attempting to hold a position within your portfolio, general safety advice is to keep that allocation less than 10% of your entire portfolio.
Know when to stop trading - As a wise man once said, “You have to know when to hold them, Know when to fold them.” If you have off-suit 2/7, and there’s no connection on the board. You’re not going to go all-in because you want to win. You’ll fold and move on and start your new hand in a couple of minutes. The same principle applies to the market.
Those are just a couple of quick tips about risk management. I hope that they all positively benefit you and give you something to think about and consider.
For my allocations for today, I will say that I do not intend on trading and will be attempting not to allocate into any positions throughout the day. I will manage my positions when given an opportunity to do so, but I will be taking a meeting at 9:30, so I will be away for a little bit. We are finalizing everything with our Christmas holiday donation and vetting the school that we are going to. I’ll be gone slightly after opening and will be gone until slightly before lunch. We apologize for this, but thank you all for understanding!
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, INTC, $DG, $AIFF, $GRYP, $TSLA, $RIVN, $NVDA
LONG OPPORTUNITIES:
Long-Term Dividend - $GAIN / $JEPI
Long-Term Investment - $INTC / $DG / $SHAK / $BA / $RIVN
Economic News for 12/06/2024 (ET):
Employment Report - 8:30 AM
Unemployment Report - 8:30 AM
Hourly Wages - 8:30 AM
Consumer Sentiment (prelim) - 10:00 AM
Chicago Fed President Goolsbee speaks - 10:30 AM
Consumer Credit - 3:00 PM
Notable Earnings for 12/06/2024
Pre-Market Earnings:
BRP Inc (DOOO)
Wrap up
Hopefully, market conditions are favorable for us and provide us with opportunities to trade. But please tread extremely lightly on these market conditions, as we are going to see some tougher conditions to navigate. Markets are looking great, but we are starting to see the beginning signs of weakness across the board. So, just continue to be smart and safe while attempting to allocate today. Let’s realize some gains, have an amazing time, and be smart with our positions!
Good luck trading, and let’s end this week strong!!!