HaiKhuu Daily Report - 12/20/2024
Good morning, and happy Friday! Man, this has been a disgusting week for the markets. Traders are getting slaughtered, $SPY looks disgusting, and we are making new lows leading into the end of the year. $SPY is down significantly during the pre-market session, and we are back to testing the $580 support level on $SPY, meaning we’ve dropped almost $30 from the top in just a few days.
As a fair warning, $SPY is setting up a bearish TK cross under and has broken into the daily cloud, showing bearish weakness. This is unfortunate, but this has already been an incredible year. So please continue to tread lightly and practice safe risk management at this time. There is no reason to attempt to get overly greedy, but in my honest opinion, LOOK TO BUY THIS DIP. This is obviously not financial advice nor a signal to buy or sell, but with this significant movement in such a short period of time, traders are getting fearful, which is providing us with some amazing discounts across the board. Buy the dip, make smart plays, and realize gains with confidence. It is that easy.
Just as a reminder, today completes the LAST full trading week of the year. We have a half day on December 24th, and markets are closed on December 25th.
Good luck trading today, and let’s end this week strong!
The updated $SPY daily levels are as follows:
Conversion Line Resistance: $597.47
Baseline Resistance: $596.47
Psychological Support: $580
Daily Cloud Support: $584.03
Thoughts & Comments from Yesterday - 12/19/2024
Yesterday was a rough day for the markets. Traders watched as opportunities were presented to us across the board, but not many traders were able to capitalize on the momentum and realize significant gains. Markets thankfully did provide us with some bullish momentum, but man oh man was that a tough day.
So, we started the day with the markets looking pretty strong, with $SPY opening at $591.43, up $5 from the previous close, looking strong and having a wonderful time. We watched as the markets rallied to the top as $SPY went on to make the official high of the day trading at $593, and then we watch as the markets sold off, continued to sell off… and sold off some more.
$SPY quickly went from the high of the day, to testing $588 leading into the afternoon, bouncing up ever so slightly, before watching as the markets sold off towards the end of the day, where $SPY went on to make the official low of the day leading into close, trading at $585.89, before closing at $586.10, officially red for the day, losing 100% of the pre-market gains.
Opportunities were consistently presented to us, but at the same time, we are in a condition where realistically, conditions were tough, and the only thing that we could realistically do at that point, is sit back, and attempt to make the most out of the conditions yesterday. It definitely was a rough day for the markets, but so was the previous day. So we take everything with a grain of salt and move forward!
S&P 500 Heat Map - 12/19/2024
Thoughts & Comments for Today - 12/20/2024
Today is setting up to be a rough one, ladies and gentlemen. But through all of this blood, I still believe we will get what is an insane opportunity to trade and realize gains. The real question is, is this a buy-the-dip opportunity? Or is this going to be one of those scenarios where, realistically, the markets continue to come down, trapping traders with a never-ending dip? As always, it is good to practice safe risk management, but under the assumption that we are about to see a beautiful reversal in the markets with a Santa rally at the end of the year, loading up now while the markets are taking a quick dip, is not a bad opportunity to consider.
I will say that one thing that concerns me slightly at this time is that we are seeing bearish momentum coming directly from cryptocurrencies. Crypto is still hot, but after FOMC, we have watched as BTC go from trading at an all-time high to selling off and making relative lows, breaking back below $100,000. I think it is funny that despite BTC and the markets moving up significantly this year, traders are freaking out as a result of these couple days of bearish movement. However, if this bearish movement grows larger, that is not a good sign for the retail markets or the markets in general.
The biggest thing that you should do in these market conditions is to make sure that you are practicing safe risk management, limiting your risk, and attempting to be smart with your general allocations. Do not take on too much risk, do not overextend your portfolio, and just continue to do what you can to maximize your profit potential during this time.
Buying this dip is going to be great. The only concern is where the markets go from here and how low the markets will go prior to a reversal. So tread lightly and make some smart decisions, but at the same time, just allocate properly to these market conditions and make some good plays. Obviously, markets can be a lot better, but buy when there is blood in the streets and make the most out of this opportunity.
For my personal plays today, I am looking to allocate long into the markets, but I do not know where I want to allocate just yet, so tread lightly on these market conditions, and we can have fun in the process together. I will let you know which long positions I end up ultimately taking on. So please make sure to practice safe risk management in these conditions, and we will have an amazing time trading together!
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, BTC, $GRYP, $AIFF, $DG, $BA, $NVDA, $TSLA, $RIVN
LONG OPPORTUNITIES:
Long-Term Dividend - $GAIN / $JEPI
Long-Term Investment - $INTC / $BA / $TSLA / $RIVN
Economic News for 12/20/2024 (ET):
Personal Income - 8:30 AM
Personal Spending - 8:30 AM
PCE Index - 8:30 AM
Consumer Sentiment - 10:00 AM
Notable Earnings for 12/20/2024
Pre-Market Earnings:
Winnebago Industries (WGO)
Wrap up
Hopefully, markets are able to recover from this level. Please make sure to practice safe risk management and simply limit the amount of downside risk that you are taking on. Look for an opportunity to buy the dip, but only buy it when you have the confidence to do so. Traders should have fun, so let’s end this week strong with some realized gains, and take it easy today!
Good luck trading, and let’s end this week strong!!!