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TICKERS: NVDA

A Listless Session in Advance of Nvidia Earnings
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Michael Ballanger With an earnings report on the horizon, Michael Ballanger of GGM Advisory Inc. shares his thoughts on Nvidia Corp. (NVDA:NASDAQ).

Goldman Sacks calls Nvidia Corp. (NVDA:NASDAQ) "the most important stock in the world," and based on its weighting in the S&P 500, that is undoubtedly true.

The company reports earnings after the bell tonight, and while they will probably come in "above expectations" with a "beat," there are many components within the report that could spook traders into taking the immense profits that exist in this, the artificial intelligence leader of the Free World.

Forward guidance about future revenue and profit margin, as well as delivery of the new prototype chip, could undermine the report, but at the end of the day, it is going to be how traders are positioned going into the opening on Thursday that will matter. My bet is that they will have the ugly month of September on the horizon and choose to trim holdings before month-end.

The stock is up 45% from the low established on August 5 during the "carry trade crash," which has turned out to be the best buying opportunity of the year.

While it is not yet in typically overbought condition based on an RSI in the high 50s, MACD is starting to flatten, and MFI at 69 represents cautionary signals. The saying used to be "As GM goes, so goes the market." (1960-1980); then it shifted to "As IBM goes, so goes the market." (1980-2000), after which it shifted to "As APPL goes, so goes the market." and while that is still partially true, in 2024 the theme has shifted to "As NVDA goes, so goes the market."

I expect today's session to be listless in advance of the big NVDA report after the close.


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Important Disclosures:

  1. Michael Ballanger: I, or members of my immediate household or family, own securities of: Nvidia Corp. I determined which companies would be included in this article based on my research and understanding of the sector.
  2. Statements and opinions expressed are the opinions of the author and not of Streetwise Reports, Street Smart, or their officers. The author is wholly responsible for the accuracy of the statements. Streetwise Reports was not paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Any disclosures from the author can be found  below. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy. 
  3.  This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company. 

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Michael Ballanger Disclosures

This letter makes no guarantee or warranty on the accuracy or completeness of the data provided. Nothing contained herein is intended or shall be deemed to be investment advice, implied or otherwise. This letter represents my views and replicates trades that I am making but nothing more than that. Always consult your registered advisor to assist you with your investments. I accept no liability for any loss arising from the use of the data contained on this letter. Options and junior mining stocks contain a high level of risk that may result in the loss of part or all invested capital and therefore are suitable for experienced and professional investors and traders only. One should be familiar with the risks involved in junior mining and options trading and we recommend consulting a financial adviser if you feel you do not understand the risks involved.





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