HaiKhuu Daily Report - 12/10/2024
Good morning, and happy Tuesday! I hope you all are ready because market conditions are getting sketchier and sketchier as the days pass. $SPY is down slightly, and we are actively testing the daily technical support levels. Traders are starting to get confused about their sentiment, and we might see some disgusting bearish momentum over the next couple of days in the markets.
I’ve warned about this before, and I will warn you all about this again. Watch out for cryptocurrencies and semiconductors. I am confident that those will be the leading indicators for the markets to start coming down, so it is just a matter of timing out your allocations and preparing accordingly for the reversal. I am not saying that you should be overly bearish, as market conditions are extremely strong, but continue to remain a skittish bull.
This will be an interesting day, so please continue to practice safe risk management and protect your bottom line.
Good luck trading today, and prepare for some turbulence!
The updated $SPY daily levels are as follows:
Conversion Line Support: $603.17
Baseline Support: $588.48
Psychological Support: $600
Daily Cloud Support: $576.17
Thoughts & Comments from Yesterday - 12/09/2024
Yesterday was a disgusting day for the overall markets. Conditions were terrible, and traders were slaughtered in the process. Hopefully, you all were able to survive and capitalize on the bearish momentum in the markets, but I know that many traders, unfortunately, could not survive long enough to tell the tale.
We started the day with markets honestly looking pretty alright despite general conditions not looking strong. $SPY opened at $607.74, down slightly from the previous close, and conditions were looking rough. We went on to make the official high of the day, trading at $607.86, before watching the markets absolutely dive. We went on to make a relative low, trading at roughly $605, before bouncing slightly, leading into the lunchtime lull.
During the lunchtime lull, $SPY continued to remain around that $605-606 range, breaking out slightly leading into the back half of the afternoon before selling off continually throughout the rest of the day, taking many traders hostage and attempting to kill other traders.
We watched as $SPY made the official low of the day, trading at $604.08, before bouncing up ever so slightly into close. We officially ended the day with $SPY trading at $604.68, down roughly $3 for the day, or roughly 0.5%.
I will say that yesterday was a rough day for the overall markets, and many traders got wiped out across the board. Conditions were not excellent, and I do not think many people could remain profitable yesterday. If you were able to generate profits yesterday, congratulations, as life must be great, and if you, unfortunately, realized some losses yesterday, just know that it is not on you that losses were generated… well they are. Still, market conditions yesterday were not favorable for anyone holding general positions. Regardless, it is life. I hope you survived the markets yesterday and are ready to see what happens today!
S&P 500 Heat Map - 12/09/2024
Thoughts & Comments for Today - 12/10/2024
Today is going to be a confusing time for the markets. Everyone wants to be bullish and wants the markets to rally to make a new all-time high, but with the current conditions, I believe that many traders will get slaughtered in the process. With market conditions getting sketchier and sketchier, I am not advising to be overly bearish, as market conditions can very easily shift back in our favor. Still, my advice is to tread lightly and practice safe risk management.
One thing I do not talk about often, but that I feel would fit well here, is securing profits and maximizing your gains while minimizing your risk. I have a couple of tips for you all.
First off, setting a stop in guaranteed profit is the first thing that you should do once you have enough room in a position that you can hold comfortably. It is as simple as setting a stop at either break even or setting that stop in profit. It minimizes the risks you are taking on, as it generates a “zero-risk exposure play.” In the worst-case scenario, you will get stopped out for guaranteed profit or at least at no loss. There is no literal downside potential at this point, limiting that downside risk, while securing your upside potential.
Next is understanding how to take profit and how to exit a position. My recommendations for attempting to exit a position are multiple levels deep, depending on the position, your timeframe, and what you anticipate from your position. Continually increasing stops is a fantastic way to secure more and more profit as a position is going up. I would not set these stops too tight, as there will be a high likelihood of you getting stopped out, losing the position, and, if there is strong momentum, missing out on a significant amount of gains, assuming the position continues to run without you. Adjust those stops to the next major support/resistance levels, and continue to let your position ride.
The last recommendation I have for you is my favorite, which I have seen some of the best returns with, which is what we call the “Free Equity Trade.” Essentially, what is in the case is that if you want to retain exposure in an extremely profitable position but are contemplating cutting a position for various reasons, then you should look into a FET. It is simply cutting your initial exposure and riding the profit as your new position. For example, let’s say you have a $1,000 position, and it rallies to $2,500. Cut $1,000 of your exposure, which was your initial cost basis; now, you get to ride $1,500 of exposure absolutely free and can take profit whenever you’d like. If you girl math that position, it is essentially “free.” The proper term for this is a zero-cost basis trade, but at the same time, who cares? You simply get to enjoy some beautiful momentum with zero downside risk. Some of the best recommendations I’ve had in the past have simply been these free-equity plays.
So, this is obviously not all the recommendations I have, nor is this every single way for you to cut exposure in the markets, but at the same time, Hopefully, you all were able to take something away from this and have it help your trading. If you have any questions, you can always message me or post in Discord, and someone would be more than happy to help you out!
For my position today, I intend to be more passive in the market. I am not the biggest fan of these current conditions, and I do not feel the need to “force” a position. I think that there have been some great opportunities to allocate into the markets, specifically that shout-out for healthcare services yesterday, as that was one of the top performers in the markets, but at the same time, with the weakness we see both in the crypto and equities markets, I would advise you all to tread extremely lightly, and consider taking some profits off the table! So be smart, have fun, and let’s make the most out of today!
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, BTC, $GRYP, $INTC, $RIVN, $DG, $AIFF, $TSLA, $NVDA
LONG OPPORTUNITIES:
Long-Term Dividend - $GAIN / $JEPI
Long-Term Investment - $INTC / $DG / $BA / $RIVN
Economic News for 12/10/2024 (ET):
NFIB Optimism Index - 6:00 AM
Notable Earnings for 12/10/2024
Pre-Market Earnings:
AutoZone (AZO)
Academy Sports (ASO)
Ollie's Bargain Outlet (OLLI)
Designer Brands (DBI)
Ferguson (FERG)
Hepsiburada (HEPS)
Johnson Outdoors (JOUT)
United Natural Foods (UNFI)
G-III Apparel Group (GIII)
Vince Holding (VNCE)
After-Market Earnings:
GameStop (GME)
Stitch Fix (SFIX)
Dave & Buster's (PLAY)
Skillsoft (SKIL)
Mama's Creations (MAMA)
Sportsman's Warehouse (SPWH)
Wrap up
Hopefully, markets are not absolutely disgusting today, and we see a beautiful bullish movement. But tread lightly, as conditions are not optimal, and traders will slowly get slaughtered. Take profit on the positions you are happy about and allocate accordingly. Hope for the best in these market conditions, but prepare for the worst knowing that things can easily come down, and once we start to sell off, the selling will be extremely rapid and unexpected
Good luck trading, and let’s see where the markets take us today!