Beat And Raise For $NVDA - Market Reaction Muted
Beat And Raise For $NVDA - Market Reaction Muted
Market Update
The Markets
NVDA’s earnings report exceeded official expectations. The Street was looking for earnings of $0.64 a share and revenue of $28.7 billion. They reported $0.68 per share, revenues of $30 billion, an additional $50 billion in stock buybacks, and increased future earnings guidance.
Business is good. But …
While results exceeded the official expectations, they weren’t quite enough to boost the stock higher. This was the possibility mentioned on Monday.
“… the stock is already up more than 40% in about three weeks. Expectations are high, and they must wow the Street to keep the stock moving higher.”
A good report. But not a Wow report.
The stock was off over 6% today and is testing its 21-day MA. The next potential support is a long way off at the pivots near $97 and $90, followed by the 200-day MA at $87.63.
The rest of the charts show the overall market reaction.
The Charts
SPY started the day strong, moving above the 8-day MA and toward new highs. But the rally was disrupted by an afternoon ‘rug-pull.’ It finished back in the range of the last couple of weeks, signaling that the chop isn’t over yet. The pivot area below $555 continues to be a key level.
QQQ continues to drift lower in an orderly fashion. $467-$468 is key potential support with the swing high AVWAP and a gap in that area.
IWM held the 8-day MA, closing the day only $0.03 away from the open. The relative strength in small caps is important to overall market health. Realization of the expected Fed rate cuts should send this higher.
DIA was the clear leader for the day, gapping higher at the open and closing at another new high.
TLT hit the 21-day MA and formed a hammer.
DXY US Dollar futures keep bouncing from the anticipated level, though the action is mild so far and doesn’t appear to be hampering stocks.
BTCUSD continues the erratic and choppy moves, frustrating traders on both sides of the bull/bear debate. The AVWAP from recent lows has provided strong support so far. We’ll see how long it lasts.
The Trade
The overall market is holding its ground, if a bit choppy while doing so. Individual trade setups are mostly working.
PYPL and XBI from Monday all act well.
SBUX gave a beautiful breakout before pulling back to rest.
IWM dipped for a test of the rising 8-day MA and resumed higher.
HUT did get dragged lower by the Bitcoin dip.
AAPL, ADBE, and NFLX all looked like breakouts before pulling back. We’ll see if they can go again.
PANW may have started a bigger move and is something to watch.
Keep the shopping list fresh.
PCE is the next news event, coming out Friday morning.
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The Disclosures
***This is NOT financial advice. This is NOT a recommendation to buy, sell, or trade any security. The content presented here is intended for educational purposes only.
Andrew Moss is an associated member of T3 Trading Group, LLC (“T3TG”), an SEC-registered broker/dealer and member of FINRA/SIPC. All trades placed by Mr. Moss are done through T3TG.
Statements in this article represent that person’s opinions only and do not necessarily reflect those of T3TG or any other person associated with T3TG.
Mr. Moss may hold an investment position (or may be contemplating holding an investment position) that is inconsistent with the information provided or the opinion being expressed. This may reflect the financial or other circumstances of the individual, or it may reflect some other consideration. Readers of this article should consider this when evaluating the information provided or the opinions being expressed.
All investments are subject to the risk of loss, which you should consider in making any investment decisions. Readers of this article should consult with their financial advisors, attorneys, accountants, or other qualified investors before making any investment decision.
POSITION DISCLOSURE
August 29, 2024, 4:00 PM
Long: HUT0830C12.5, RDFN0830C12, XBI0920C105
Short:
Options symbols are denoted as follows:
Ticker, Date, Call/Put, Strike Price
Example: VXX1218C30 = VXX 12/18 Call with a $30 strike