What Now NVDA? 2/4/2025

 

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NVIDIA (NVDA) saw positive movement in its stock price, gaining 1.68%. This following the enormous recent downturn due to competition from a low-cost Chinese competitor, DeepSeek coming online. 

Additionally, NVIDIA is preparing for its first-ever "Quantum Day" at GTC 2025, focusing on advancements in quantum computing. Some analysts are optimistic about NVIDIA's future, with a predicted EPS growth of 61.54% and revenue growth of 70.68% for the upcoming earnings report on February 26, 2025.

Hope it helps.

E

This Well Positioned TAOST Stalk Candidate Reports in 3 Days

Most people choose to buy stocks by the seat of their pants. 

Because you heard a rumor...

Because this bank or that put out a glowing report...

Because you like the company's product[s] and assume everyone else does as well.

Having been at this for awhile, I've learned that the best way to trade [also known as the most profitable] is simply and following the same few patterns day after day... trade after trade.

Today's candidate is exactly that.  It follows one of the many patterns I've used for the last 20+ years to extract profits from the market.

It has a beta [A beta that is greater than 1.0 indicates that the security's price is theoretically more volatile than the market] of 1.66.

And it reports in 3 days.

 You're welcome.

I Didn't Expect This Stock To Sail Higher

Royal Caribbean Cruise Ltd [RCL] has had a nice run over the last several months rising from below $40 in mid-2022 to well above $100 this year.  The stock looks set to find support at around $112 or, in the worst case, at $100.

SPY Index ETF Update 25 November 2023

After fighting off the negative price action over the course of most of 2023, the S&P500 looks to be in full swing to move higher and eclipse the recent swing high and, perhaps ultimately the all-time high put in the week of 24 July 2023.

While November's candle is not complete just yet, the strength of the candle with just a few days to go suggests the move is both real and destined to continue.

SPX 500 Headed Into The Last Trading Day of March 2022

One of the most common [and reliable] chart signals happens at the end of a month, quarter or year.

That signal? 

Buyers taking stocks and, consequently, indices higher.

Given the market has made a strong, multi day move higher, made a higher high and breached TAOST Balance Zone to the upside, the index may take a breather, but don't be surprised if price resumes its upward trek in short order.

AT&T [$T] 30 January 2019

Always beware of a stock that's down when the overall market is up substantially.  

It's often a telltale sign.  

Both the S&P500 and the DJIA were both up more than 1.5% while $T was down more than 4%.

The chart shows a long term bullish price pattern that failed.  It's not likely to repair itself.

AAPL Update As of 18 January 2019

AAPL reports on 29 January 2019.

Things don't look good for the stock right now.

The broader stock market has been on a tear since Christmas, but Apple's stock can barely get up off the mat.  $140 and TAOST Low Power Zone look like good support, but nothing can hold up a market determined to collapse.

One of my favorite trading strategies historically was to buy stocks that went up when the overall market went down.  It stands to reason that 1 should sell stocks that can't go up alongside the broader market... especially when the stock is supposed to be a market leader.

I say all that to say that it appears to me that Apple is in trouble.

Only the future will tell.

NFLX Responds To Support & Resistance Principles

Netflix put in a nice sell signal against resistance (including TAOST Magnet Zone) on the 5 minute chart a little while ago.

The principles work...

SPX, DJIA & GS Update - 16 January 2019

S&P 500

DJIA

It's not quite time to go all "horns up" folks.

To be sure, the bounce has been "strong like bull."  But, as the charts above show, structurally, the broader stock indices aren't out of the woods just yet.

Both the SPX and the DJIA are only just challenging TAOST Magnet Zone™ (TMZ) from below.  Price is already stretched to the upside, so beware of getting long here.  In fact, don't be surprised if price rolls over and traces out lower prices... in fairly short order.

GS

The Goldman Sachs daily chart shows that today's 10% move higher only pushed price toward significant resistance above in TMZ and a separate long running resistance zone.

The selloff may indeed be over... but make sure price validates such a thought by closing above these areas of resistance.

Big Companies Reporting Tuesday 14 January 2019 -- JPM, WFC, DAL and UAL

JPM -- JP Morgan has work to do to get change from its negative structure on the daily chart.

WFC -- The red horizontal line was support... and is now resistance.

DAL -- Like many other large caps (including other airlines) Delta Air took a steep nosedive and is likely to have a hard time moving back to the upside.

UAL -- United Continental looks like it has an important support test coming up.

What Does The C Chart Say After Today's Report

Citigroup reported before the market's open this morning and rose a bit over 4% over the course of the day.  While many market commentators breathed a sigh of relief, pay attention to the $60 area... It should be pretty good resistance.

Analyst Says GE Could Be Worth Only $5...

"The worst might not be over for General Electric.

Despite GE's (GE) 2019 stock surge, Gordon Haskett analyst John Inch believes the company's cash flows are likely to remain 'extremely challenged.'"

GE Weekly Chart

TAOST Select Data

Short Interest

I would expect short interest to be much higher as a percentage of the float given the stock's structure... But it makes sense... the stock has bounced from its $6.66 52 week low over the last 6 weeks.  High short interest is like jet fuel to the upside... without it I feel even better about the short idea.

How To Trade It

GE Daily

Short The Stock

Of course you could short the stock on a good signal to the downside... Perhaps wait until price breaks the low of the preceding week's candle and short the stock outright.

Trade The Options

I think the better idea is to buy January 2020 Puts (options contracts that climb in value if the underlying stock falls) when the chart gives a good signal.

As the chart above (courtesy of Yahoo Finance) shows, you could purchase a single $3 strike contract for $8.00.

Yes... you read that right... on Friday afternoon, $3 strike January 2020 put options could have been purchased for $.08 each (a contract represents 100 shares of the underlying).

The closer $5 strike puts could have been had for $27 per contract.

My point here is that if you believe the analyst (and agree with the chart), $GE could certainly see $5 or below.  This is a relatively low risk way to get exposure to that idea.

Full disclosure... In my mind, $GE still has a good business... lots of them in fact.  I have a really hard time imagining the stock falling through $5.... 

But that's gut feeling.

One of my rules is "Trade what you see... not what you think."

I suggest you do the same.