After Hours NVDA Earnings beat on top & bottom lines with strong forward guidance led by “Blackwell chip sales off the charts” per Jenson Huang. He reaffirmed that the AI Industry and adoption is in “early innings”. Hyperscalers (NBIS CRWV ORCL), Storage (SNDK STX MU WDC) Fiber Optics(LITE CIEN) responded and were all up after hours.
Will this be enough to spark a rally into year end? If so, we have been monitoring the strongest RS names while looking for clues that a rally might have legs. There is no reason to “dive” back into the deep end of the pool, but we can “put our toe in water” with pilot positions in RS Names.
Two Trades are back on the Focus List
GEV +7.3% today with a positive 3 Bar Break to the upside
Pivot $600.10
Stop 570.24
Risk 5%
FROG +4.8% and also has a 3 Bar Break
Pivot $61.00
Stop $57.70
Risk 5.4%
AVGO, our biggest position, which had been lagging came to life and reclaimed the 50d today in what appears to have been a “shakeout at the 65ema”.
AMD‘s recent -16% swoon unfortunately touched our stop by a few cents so we will book the +33.8% Gain.
SNDK which broke the 10sma yesterday did not under the low of yesterday, so for those using the Seven Week Rule, there was no sell trigger today.
Let’s see what tomorrow’s action brings…..if the almighty NVDA can’t get Tech back in gear, what will?
This is NOT investment advice.
Trade Well
J