Nvidia's Forward Guidance Was Light
Contributed Opinion

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Nvidia Corp. (NVDA:NASDAQ) reported earnings just after the close, and as expected, they had a blow-out quarter, but the forward guidance was deemed to be a tad "soft."

The stock is also down over 5% in after-hours trading.

Traders are indeed looking out to September, which has earned a reputation as a "bonus killer."

While the stock is not exactly crashing, it bodes poorly for the next two trading sessions (month-end book squaring) and for the month of September.

Volatility had a great day as the 2x Long VIX Futures ETF (VIX:INDEXCBOE) was up 11.08% and the VIX itself up 10.89%. I own 6,000 shares at an average of $4.50 so with NVDA sure to drag the other Mag Seven issues lower, it should also give volatility a shot in the arm.

I wrote on August 5 that I was liquidating all of my market hedges, which included all volatility and "short stocks" ETF, but that there was ultimately going to be a re-test of those lows seen on the "carry trade crash" day, and I continued to plan for such a re-rest. I think that re-test started today.

I am going to look at the Invesco QQQ ETF (QQQ:NASDAQ) November put options tomorrow pre-opening but for those yet to buy the volatility trade (UVIX:US), if it opens under $4.75, it should be bought.