First of all to understand my analysis, read up on Tom Demark's sequential 9.
Applying Tom Demark's sequential 9, yesterday is the 7th day straight of gains for NVDA since the correction ended.
sequential 9 states that after number 9, there will be a decline, (although this time might be different because we are heading into The earnings. In trading nothing is 100%. We can only predict high chance of something happening and come up with plan A-Z in case this or that happens
If you want a reference, refer to NVDA daily chart
Go back to 3 November 2023 that period leading up to earnings.
Might give you a glimpse of what might happen next.
Though in trading the past does not guarantee the future, it gives you an idea of what to anticipate.
For short term traders you might want to take partial profit and bring your remaining positions into the coming earnings on the 28th August after market close.
As per my research
legendary hedge fund Coatue up its stake in NVDA
Temasek holdings had 9m++ shares in it
US politician Nancy Pelosi bought more of NVDA
Google ex ceo Eric Schmidt says the world needs alot of AI hardware from NVDA. the shares is a buy.
These information are publicly available. Do a search online to verify.
Im not insinuating earnings will be a guaranteed blast. Nothing is guaranteed so tread carefully dyodd.
Anything can happen earnings is a 50/50. Market might not like what they hear and overreact or earnings will be a blast and the stock goes up.
My personal view:
Judging From TSMC's record high earnings recently, AI is in demand and NVDA, being an intermediary, this coming earnings might also reflect the demand.
PLTR, the king of AI software is ripping from this AI wave
AMD also had its target price increased by analysts
So NVDA, the king of AI, it doesn't make sense if it is left Out from all these.
long term investors might want to hold through earnings and buy more if it dips. anyway the FED high chance will be cutting rates in the next FOMC this will drive stocks further So NVDA might benefit in September.
If it dips, just buy more. November is usually a good month for stocks.
if you are thinking about taking profit, Weekly chart MACD is still red. Wait for it to turn green and Daily macd also green to reap max profit.
The fear greed index is still in the fear zone. You might want to wait for it to turn greed/extreme greed before taking profit.
if you are thinking about taking profits before earnings, applying TD sequential 9 rules, you might want to do so on 8 or 9.
We have a bunch of data coming out this week. It could be the catalyst and drive NVDA further if powell gave any clues about rate cut in September this Friday when he speaks at the Jackson Hole.
FOMC minutes will be released on Wednesday's 2am. Any mention of rate cut in September will also drive the stick market further up.
Thursday will have unemployment data, which will drive the market up if it is good.
As usual, dyodd. The above are only my thoughts not a financial advice.
The only thing left that might bring the market down now is the worsening of Monkey pox situation /Israel Iran war.
we are past the recession fears. goldman sachs cut recession rating to 20% and the Sahm rule founder says she don't think a recession will happen.
Us's GDP is still resilient, with 3% growth rate. So I don't think recession is going to happen, whatsmore with the FED cutting rates soon.
Thanks for reading. As always dyodd.
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