HaiKhuu Daily Report - 12/11/2024
Good morning, and happy Wednesday!!! I hope you all have enjoyed this week so far, as it has been flying by! We are seeing the weakest sign of a reversal happening at the moment, and the markets have already bounced ever so slightly during the pre-market session, so please continue to tread lightly. Market conditions are still strong, but conditions are sketchy, mostly as momentum is slowing down, and $SPY has broken the daily conversion line for the first time this rally.
Again, I am not saying that you should be overly bearish in these market conditions as conditions are still strong, but know that we are starting to see cracks forming in the foundation as we see some slight weakness. Continue to tread lightly and practice safe risk management in these conditions. Traders will be provided with sketchy conditions but some amazing opportunities. So, let’s take advantage of these opportunities, and we will run from there!
Good luck trading today, and let’s see where market conditions take us!
The updated $SPY daily levels are as follows:
Conversion Line Support: $603.17
Baseline Support: $588.48
Psychological Support: $600
Daily Cloud Support: $576.08
Thoughts & Comments from Yesterday - 12/10/2024
Yesterday was a tough day for the overall markets despite the relatively minimal overall movement, yet it was disgusting the entire time. Conditions could have been significantly worse if $GOOGL and $TSLA had not saved the markets granted. The markets could have also done significantly better if $GOOGL had not attempted to kill all the semiconductor companies yesterday, but that is beside the point. Market conditions were rough, slow, and bearish despite providing us with many fantastic opportunities to capitalize on both the strengths and weaknesses across the board.
We started the day with markets honestly not looking the worst; as $SPY opened at $605.40, looking relatively strong, up slightly above the previous close, and watched as $SPY dropped slightly before popping back up slightly, to make the official high of the day trading at $605.70, and started on the slow, and tedious tumble. Markets continually sold off into lunch and provided us with a glimpse of hope as we watched as $SPY bounced slightly, making one last push to remain green, but unfortunately, it did not prevail as conditions only continued to get worse leading into the afternoon, where $SPY sold off. We watched as traders continually attempted to catch a falling knife.
Selling really expedited during the back half of the afternoon, when we watched as $SPY slowly trended down and slowly bled many traders dry. We watched as $SPY went on to make the official low of the day during power hour trading at $602.13 before bouncing slightly into close. We officially ended the day with $SPY trading at $602.80, down $2 from the previous close or down roughly 0.3%.
What I will say about yesterday is that conditions were rough, not because the selling that incurred hurt, but more so because of the slow bleed caused by semiconductors impacting the markets. The slow conditions 100% took many traders by surprise, negatively impacting their performance and causing many traders to catch a falling knife. I hope you all were able to survive the momentum of yesterday and are ready for what is going to be an interesting day today!
S&P 500 Heat Map - 12/10/2024
Thoughts & Comments for Today - 12/11/2024
Today will be a confusing time for the overall markets, if I am just being completely honest with all of you. With the way that the markets are looking, conditions are not looking the best on a daily, but what I will say is that these conditions are still strong and provide us all with great opportunities to trade and realize a significant amount of gains in an extremely short period of time. Semiconductors were hit hard yesterday by $GOOGL, and I believe that as a result, we will get mixed signals from both the markets and trader’s sentiment. Just remember that despite the markets coming down for two days, and we are starting to see the weakest signs of a reversal, that perspective, the markets are still at a place where we can easily continue to move up. There is overall strength, strong momentum, and the volume to justify everything. This is just something to consider in these market conditions. This is not a signal to buy or sell or a confirmation of a direction. But if you were attempting to trade today, I think remaining a skeptical bull will work out perfectly. If market conditions are great, allocate accordingly and capitalize on that strength, and if the markets look relatively weak or you are not confident in the momentum, do not attempt to force any position.
One position I will warn you all to stay very clear of is $TSLA at these levels. While $TSLA is a great organization and fairly deserves the current evaluation, it is also heavily overvalued at this point and will need to come down inevitably one of these days. I believe there is a chance for $TSLA to continue to rally and make a new all-time high, which is within the realm of realistic possibilities, but at the same time, with the way that the markets are sitting, allocating here is an extremely risky position that I would not recommend. If you are holding Tesla, this is not a bad time to continue to hold and slowly scale out of your position, but please be extremely cautious if you are attempting to purchase now, after the rally. I will say that this is not a signal to be bearish or attempt to short $TSLA. Those who attempted to short Tesla have been slaughtered but at the same time. If you can time your position out perfectly at the top, a $TSLA short is going to be great, but unless you can catch that top perfectly and $TSLA continues to move up, traders are going to get slaughtered. So tread lightly on $TSLA if you are attempting to allocate.
One other organization that I am interested in at this point is $GRYP. I’ve personally been in and out of that organization frequently throughout 2024, experiencing a mix of rough market conditions and beautiful opportunities. Recently, I purchased some shares of the organization, and I currently have an average of $0.64 and I am down roughly 10% in the position. With BTC continuing to maintain its price, I am contemplating doubling down on my position, if not adding significantly more at this price. We are trading roughly around the price the shares were trading at before the elections despite BTC rallying considerably simultaneously. The organization rallied beautifully to $1.10 approximately a month ago. I am not saying that that will happen again, but I really would love to see this organization trading back above $1 again. This is not a signal to buy or sell this organization nor financial advice. But I am letting you know that I will allocate a bunch to this organization over the next few weeks.
My plans for allocations today though are different. With $INTC dropping heavily and testing $20 yesterday, I am considering adding significantly more towards my position and averaging down accordingly. I do believe that this is a riskier allocation, mostly as $INTC has fallen heavily from the top, but at the same time, this is exactly the lower end of the range that I have been talking about. Assuming that $INTC continues to maintain this price after the fall we have seen over the previous couple of days, and shows a sign of a reversal, I do intend on purchasing significantly more $INTC today and scaling into my position accordingly. Outside of that, I do not intend on scalping as I am skeptical of these conditions, but I am very excited to see where the markets go from here!
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, $GRYP, $TSLA, $AIFF, $NVDA, $RIVN, $GOOGL, $INTC, $DG
LONG OPPORTUNITIES:
Long-Term Dividend - $GAIN / $JEPI
Long-Term Investment - $INTC / $DG / $BA / $RIVN
Economic News for 12/11/2024 (ET):
Consumer Price Index - 8:30 AM
Core CPI - 8:30 AM
Monthly Federal Budget - 2:00 PM
Notable Earnings for 12/11/2024
Pre-Market Earnings:
Macy's (M)
Kanzhun Limited (BZ)
REV Group (REVG)
Vera Bradley (VRA)
After-Market Earnings:
Abobe (ADBE)
Nordson (NDSN)
Oxford Industries (OXM)
Wrap up
Hopefully, the markets will rally for us, but I am not counting my chickens before they hatch. I am excited to see where the markets take us, but at the same time, I am not holding my breath. Follow the market momentum, find the trending organizations, and capitalize on these strong market conditions. I am excited to see where the markets go, and hopefully, we will break out, but as always, please continue to tread lightly and practice safe risk management during this time.
Good luck trading, and let’s see if $SPY reverses today!