HaiKhuu Daily Report - 12/19/2024
Good morning, and happy Thursday. Wow. Congratulations to everyone who survived the largest single-day bearish movement since COVID began. Traders should be in SHOCK as a result of the bearish movement yesterday. As warned, the selling event would be quick and unexpected, and unexpected it was. We watched as the markets smashed through all support on the daily, and have been slaughtered in the process.
Hopefully, you all were able to live to tell the tale, and now we can take advantage of these opportunities and realize a significant amount of gains to make up for yesterday. Look for opportunities to BUY THE DIP, and simply watch the rip. I’ll talk more about how/when to allocate into the markets later on in this report. But for now, look to do what you can to maximize your profit potential, and let’s see where the markets take us today.
Good luck trading today, and let’s watch for a quick market recovery!
The updated $SPY daily levels are as follows:
Conversion Line Resistance: $597.48
Baseline Resistance: $596.47
Psychological Support: $580
Daily Cloud Support: $583.71
Thoughts & Comments from Yesterday - 12/18/2024
Yesterday was an absolutely disgusting day. I don’t know what else there is to say. It was one of the worst-selling events we’ve seen since COVID, and we watched as $SPY dropped over $20 as a result of the interest rate cuts and Jerome Powell stating that his forward outlook was weak, stating that they expect to cut rates fewer times than expected, and well… we all saw what happened afterward.
So, we started the day with the markets looking alright. $SPY opened at $604 and was looking relatively strong as we rallied throughout the morning. We watched as $SPY went on to make the official high of the day, trading at $606.40, and then quickly watched as $SPY slowly trickled down leading into the afternoon. Right before the announcement on the interest rates, $SPY was trading north of $605, and then we watched as the markets essentially went into free fall.
$SPY quickly dropped and retained the $600 support level until Jerome Powell took the stage, and the results speak for themselves. The American Markets got slaughtered, traders were hurt, and everyone (except a few smart traders) had a tough time. We watched as $SPY continually broke support levels while selling off. $SPY broke the daily baseline support, and traders were just getting decimated on the way down. We watched as $SPY went on to make the official low of the day, trading at $585.89 before recovering slightly into close, where we officially ended the day with $SPY trading at $586.28, down $18 or roughly 3%.
I am not going to lie and say that yesterday was not an absolutely terrible day; it was one of the worst trading days we’ve seen in modern times, and traders who survived will tell tales about witnessing history in the making. Life moves on, and so do the markets. So, let’s see where these conditions take us today and see where everything goes.
S&P 500 Heat Map - 12/18/2024
Thoughts & Comments for Today - 12/19/2024
Today is going to be another interesting time for the markets. Either markets are going to recover beautifully, making trading extremely easy and consistent for anyone who is attempting to buy a dip, or we are going to watch as the markets continue the sell-off, making trading extremely inconsistent and bloody. Thankfully, we have watched as the markets have shifted up during the pre-market session, but that does not boast enough confidence for the markets to continually move up blindly throughout the rest of the day. As I have been saying, treading lightly has been essential towards your trading, but now it is the time to attempt to take on some risk and find an opportunity to buy the dip.
What I will say about attempting to buy the dip, though, is that there will be good locations to attempt to allocate your capital, and there are going to be tougher spots to allocate your capital. With the markets dropping heavily, I would not advise attempting to be overaggressive while allocating, but at the same time, you should try to find the best opportunity to allocate into deep value into the markets that you have both comfort and confidence in. I would still advise staying away from some MAG-7 stocks that are heavily overvalued, IE, $TSLA, but look for fundamentally solid organizations that have seen some bearish momentum that look like a steal of a deal.
Just be careful allocating too soon in these market conditions. Start light with your allocation and attempt to buy this dip. In the case that the markets continue to dip, then there will be opportunities to capitalize on the dip, and you can purchase more with significantly less risk, but at the same time, we do not know confidently where the bottom is. Many are believing that it is here, but we also did not expect to see a $20 sell across $SPY yesterday. So, as I have constantly reminded you all, tread lightly, practice safe risk management, and take advantage of these opportunities.
For my allocations today, I will say that I am interested in actively trading, but as a result of the sour taste in everyone’s mouth from yesterday, there is really not much that many people can attempt to do to minimize the movements of yesterday, but I will be looking for opportunities to capitalize on tomorrow. I want to find some great deals in the markets and allocate accordingly because I do believe that this dip will inevitably be bought up, but the question is, it is more of a matter of not IF but WHEN it does. So, I’ll be allocating accordingly as a result of what is ongoing to make the most of this drop.
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, $NVDA, $TSLA, $RIVN, $INTC, $DG, $AAPL
LONG OPPORTUNITIES:
Long-Term Dividend - $GAIN / $JEPI
Long-Term Investment - $INTC / $DG / $RIVN / $BA
Economic News for 12/19/2024 (ET):
Initial Jobless Claims - 8:30 AM
Philadelphia Fed Manufacturing Survey - 8:30 AM
Existing Home Sales - 10:00 AM
Notable Earnings for 12/19/2024
Pre-Market Earnings:
Accenture (ACN)
Cintas (CTAS)
Darden Restaurants (DRI)
FactSet Research (FDS)
Conagra Brands (CAG)
FuelCell Energy (FCEL)
CarMax (KMX)
Paychex (PAYX)
After-Market Earnings:
Nike (NKE)
FedEx (FDX)
BlackBerry (BB)
Mission Produce (AVO)
Scholastic (SCHL)
Wrap up
Hopefully, markets are able to bounce and regain some traction at this level. I still think buying the dip is a great opportunity leading into the end of the year, because under the assumption that we see a beautiful Christmas rally, then this would become one of the best dip buying opportunities we’ve seen and can capitalize on in an extremely short period of time. Continue to practice safe risk management, and we will see where market conditions take us!
Good luck trading, and let’s see where the markets take us today.