Nvidia & GUnit...I Mean GEForce
Nvidia is up 33% this year. Wells Fargo's Aaron Rakers upgraded Nvidia to Outperform from Underperform yesterday, and doubled his price target, to $315 from $140. This upgrade was announced before Nvidia announces their second-quarter earnings report after the market bell. Rakers thinks Nvidia will have a good report, but he’s bullish long term thesis due to the market share in gaming and opportunities in the data center market, artificial intelligence and autonomous vehicles.
I don’t disagree with Rakers long term view, even wrote about Nvidia a week ago.
The question at hand is will Nvidia sell off or gap up after the earnings report. I honestly have no idea. @ scaredycatguide and I talked about it on the Money Show this past week.
We also talked about TIMM – Traders Investor Market Mentor and what they have to offer both veteran and newbie investors and traders and how they are using Steem as a conduit and forum to share trading idea and common financial goals.
The other chip makers have reported non-stellar quarterly earnings and have sold off a bit. So he’s a bit bearish on the call and may play it to the downside. I added the fact that on the weekly chart, Nvidia was making higher high, but RSI was starting to trend down, meaning momentum is slowing down.
I’m taking it step further, the iShares PHLX Semiconductor ETF (SOXX) and VanEck Vectors Semiconductor ETF (SMH) have outperformed the Technology Select Sector SPDR ETF (XLK) in the past 12 months, but in recent weeks, the SOXX and SMH has been break down faster than the XLK
The break down in the semis supports @scaredycatguide bearish short term thesis. This is a tough call, nowadays, I’m a pretty conservative trader and I personally need confirmation that price is heading down and Nvidia hasn’t broken any major demand zones.
Also, placing trades around earnings can be risky if you don’t know what you are doing, which is why if @scaredycatguide places a trade before earnings, he may put on an option spread which will cut down/limit his risks in the trade. Nevertheless, @scaredycatguide might be on to something…just look at what Facebook and Netflix did after they announcing their quarterly earnings.
What do you think, is Nvidia going to sell off or gap higher after the closing bell?
This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.
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by rollandthomas
I have always liked Navidia and the role they are playing in game gaming.
Man, I feel like my butt is on the line now. LOL. I'll about my play is more a calculated gamble on a news driven event more than anything.
Long-term NVDA looks to be kicking all the other chipmakers butts, which could play out to them beating and seeing the stock gap up.
LOL...agree, trading is meant to be boring, so sometimes we have to spice things up a bit....no pressure:)
I think Nvidia's climb without a crypto would not have such a big lift.
Interesting thought, they have made money off of crypto, but that's not their main bread and butter.
Sorry I couldn’t figure out the Discord chat but it was a great interview! I loved the fact that @rollandthomas discusses how #Steemit can touch the lives of those that do not have basic income needs met when compare to what a Facebook could do. I did not expect that to come out of guys that focus on trading and the sorts. It goes to show the potential of the #STEEM blockchain and the ecosystem it is creating. Also didn’t know that you are both fellow New Yorkers!!! It has been 25 years since I lived in New York but consider myself a New Yorker still!
@newageinv, I would say that was the nugget of the radio show. Once you get a certain age, you start thinking about others and what they don't have. Steem has touched so many lives already and it's just getting started. I follow @taskmaster4450 who talks about Steem positively affecting the lives of others almost on a daily basis.
Oh, and once a New Yorker, always a New Yorker:)