HaiKhuu Daily Report - 12/09/2024
Good morning, and happy Monday! I hope all of you traders had a wonderful weekend and are ready for another exciting week for the markets. Many economic events are happening, so expect to see some elevated volatility as traders are getting excited and ready for another fun week for everyone. This should be a great time with opportunities consistently across the board, but at the same time, please make sure to simply continue to practice safe risk management. These market conditions are strong, but there is no reason at all that anyone should be doing anything that potentially has a chance to jeopardize their account. Let’s be smart, be safe, and make the most out of these market conditions.
These are the major events to look out for this week!
Today - Wholesale Inventories
Tuesday - Gamestop Earnings
Wednesday - CPI & Federal Budget / Earnings: Macy’s & Adobe
Thursday - Jobless Claims & PPI / Earnings: Broadcom & Costco
Friday- Import Price Index
Obviously, there are significantly more economic events and earnings, so please check out the WEEKLY PREVIEW to see everything for this week!
Continue to practice safe risk management and realize some gains while market momentum looks beautiful yet sketchy! Just tread lightly, as the markets can genuinely take us anywhere. This is going to be a fun time regardless, though.
Good luck trading this week, and let’s see where these market conditions take us!
The updated $SPY daily levels are as follows:
Conversion Line Support: $602.14
Baseline Support: $588.48
Psychological Support: $600
Daily Cloud Support: $577.80
(Also; as a reminder, I will be away the second half of Friday for the holiday sponsorship!)
Thoughts & Comments from Last Week
Last week was an interesting time for the markets, with a significant amount of bullish momentum coming directly from tech while other organizations lagged. Despite the majority of the markets being red last week, the Mag-7 carried the markets, and we watched as $SPY continually made NEW all-time highs, providing traders with opportunities to trade and opportunities to realize losses. A lot happened in an extremely short period of time, and traders could have realized or lost a significant amount all last week.
So, we started last week with $SPY trading at $603.05. Conditions were not the best, but we did see relative strength from the get-go, as $SPY moved up slightly throughout Monday, dropped slightly on Tuesday, and then started to rally beautifully starting on Wednesday.
In my opinion, Wednesday was the best day to trade, as market momentum was extremely strong. We watched as $SPY rallied endlessly, continually making new all-time highs in the process, before starting to lose some steam on Thursday.
Thursday was a relatively tougher day to attempt to trade as momentum was choppy and slow, but it did provide traders with an amazing buy-the-dip opportunity as the markets dropped, leading into Jerome Powell speaking, only to make a NEW ALL-TIME high, after he left the stage, and then Friday was simply the cherry on top.
Friday was a rougher day for the markets if you attempted to trade, but we did watch as $SPY went on to make the official all-time high, trading at $609.07, before dropping off and chopping around throughout the rest of the day. We ended the week with $SPY officially trading at $607.81, up just shy of $5 throughout the entire week, or up roughly 0.8%.
I will say that last week was a relatively tougher week to navigate as momentum was slower and choppier, but assuming that you were able to navigate the markets like other traders, you should have had a wonderful time as $SPY continually made new all-time highs, crypto was looking amazing, and tech rallied like there was no tomorrow. It was a great week for the markets, and I hope you all had a great time!
S&P 500 Heat Map - Last Week
Thoughts & Comments for Today - 12/09/2024
Today should be a fun day for the markets. Traders are optimistic, as everyone should be, and conditions are looking great. There is no reason, in my opinion, for traders not to remain extremely optimistic, but we should be skeptical of these current conditions. As I have been saying for the previous week or so, you should attempt to be a “Skittish Bull”. Continue to be bullish and optimistic, but understand both the situation, as well as the reality of where the markets are. There is weakness across the board being displayed as momentum is slowing down both in the equity markets as well as cryptocurrencies, but the MAG-7 is the only reason why the markets did not dive last week. I would be extremely cautious if you are attempting to allocate into any of those stronger positions as they are at all-time highs and I believe that there are significantly better deep-value positions to look at, but at the same time, it is hard not to simply follow the momentum while conditions are extremely strong!
I will say one thing that does not sit well with me at the moment is how hard BTC and the crypto markets are looking at the moment. With $BTC hovering at $100k but not making a decisive move in the process, it is causing a lot of internal drama and negative sentiment from many of the individuals who purchased at these extremely elevated prices. There is a very high likelihood that crypto continues to move up and rally throughout the rest of the year, but at the same time, there is a reality where, eventually, BTC comes back down to reality. I am not saying that it will crash again to $20k-50k because, at this point, it is rather unrealistic to expect that, but at the same time, there are people who are FOMOing into BTC at this point, who are disappointed, who are going to be irrationally selling here in the near future leading into the holidays, assuming that BTC is not able to rally from this price.
One statement that I know some people may not believe, but I personally am confident about, is the fact that BTC and semis will be the leading indicators for the next major market correction. Both Semiconductors and crypto, in my opinion are heavily overpriced, and as a result of that, have driven a significant amount of confidence into the markets. Again, I am not saying to be bearish or attempt to short either sector, but just watch out for a reversal, as realistically, once $NVDA and BTC start to come down, we will see that bearish sentiment impact the rest of the markets!
Just continue to practice safe risk management and make some smart positions and allocations. Life is good, and so are the markets, so there is no reason at all that you should not make the most of these conditions while protecting your bottom line! Make some good plays, have a great time, and just continue to capitalize on these strong market conditions!
For my allocations today and this week, I am still holding a significant amount of $INTC at the moment, but one sector that has been underperforming significantly that I want you all to put your eyes on is the Health Care sector. With the situation that happened in NYC with one of the UNH CEOs, there has been a significant impact on the Health Care / Medical Insurance companies. It may be too soon to purchase at the moment, but if you slowly buy into the dip, you should have a great opportunity to buy some great organizations at a heavy discount.
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 12/09/2024 (ET):
Wholesale Inventories - 10:00 AM
Notable Earnings for 12/09/2024
Pre-Market Earnings:
Hello Group (MOMO)
Rent the Runway (RENT)
VersaBank (VBNK)
After-Market Earnings:
C3.ai (AI)
MongoDB (MDB)
Oracle (ORCL)
Braze (BRZE)
Planet Labs (PL)
Toll Brothers (TOL)
Casey's General Stores (CASY)
HealthEquity (HQY)
Vail Resorts (MTN)
Yext (YEXT)
Wrap up
Hopefully, market conditions only continue to get more favorable and provide us with more opportunities to trade. I would not expect to see any sort of major shift in market conditions, so remain skeptically bullish and continue to capitalize on this general market strength. As always, tread lightly and practice safe risk management, but at the same time, have some fun and enjoy this week!!!
Good luck trading, and let’s start this week off strong!