Good morning traders!
Yesterday was a picture perfect session with levels and then NVDA 0.00%↑ beating earnings and spiking through ATH which was predicted inside the Weekly Outlook.
Yesterdays Recap w/ Todays Thoughts
First I want to jump into my thoughts on Nvidia and see how this played out post earnings.
NVDA Calls will be up 1,000% at the open!
This was a stock called out over on twitter at 18 which crossed 32 this morning! Tremendous rally and heading for my 50 target while tech remains robust especially with NVDA posting a beat in ER. Longterm this stock has so much potential and I do not recommend looking to short this. The AI hype is no longer at peak yet stocks have used AI in ER to fuel moves higher. The reality is AI will bring the highest P/E whether you like it or not. AI is something nobody has priced in before and investors do not want to miss out on any opportunity.
Checking in on the Weekly Outlook performance
This I never touched on as I gave analysis on NVDA but there is high correlation with the two stocks so you could have treated this the same. After NVDA earnings AMD was also a stock to rocket upwards after hours. Really has no reason to be short, a while back I was short in tech but data started to improve and i wasn’t going to fight the thesis. All of 2023 we have rallied in the indexes but more so in stocks. Turning to upside has been the best decision as this has made money but also prevented so much potential drawdown. I will not short a trending market unless I have a clear level to get short like a longterm orderflow level or the trend breaks down.
176.5 has held which is setting this up for a push up to 192 by the end of the week, possibly today if tech continues this OVN rally.
Stock dropped a little below 121 but was reclaimed at the close and now back up to near 125 OVN. Upon a rally today this can hit 128 target. Google is a stock i will be wanting to focus on for todays session.
114.5 was nearly the low of the week other than the 114 print Tuesday in premarket. This stock has struggled to move higher like AAPL 0.00%↑ but still remains in uptrend so no reason to fight this, just need to allow levels to work.
S&P500 Thoughts