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NVDA Got $150 Billion And I’m Still Not Buying Here
The Nasdaq closed down about 1% today and the 10-year making another new high is the reason. Underneath it, the squeezes are still building and energy looks ready for another leg higher. I walk through why I am still holding my Nvidia shares into the $150 billion buyback, and why I want a pullback before I do anything in the options market.
Microsoft Has The Best Score And It ‘s Not Even Close
I closed out the week with a look at the one thing on my board that has both a high score and squeezes behind it, and it is the Mag 7 index. I see a path to a blow off top in tech in October, but it runs straight through the bond market cooling off. The best read by a wide margin is Microsoft, and I give you the exact trade my sheet is suggesting.
Fakeout Breakout
Snowflake (SNOW) is setting up with multiple squeezes across key timeframes, and it is one I am watching closely for a potential move higher.
Take The Win Here Before This Range Bites
We have been stuck in the same range since August, and today we moved less than 26 points. Squeezes are stacking across the board, but the weekly Bollinger Bands are flat and momentum is showing exhaustion, so I am taking the Fed runup profits and waiting for either the break or a pullback. I also walk through an XOM scalp off the $163.54 Divergent Bar target.
The NVDA Squeeze Is About To Fire
The Nasdaq closed up 2.89% on high volume, the VIX is back under 15, and the S&P is 30 points from a new all-time high. AMD already broke out on climbing volume, and I think NVDA is the next one to go. I walk through the $230 breakout level, my $250 and $260 targets, and the three ways I am looking to trade it.
The Fed Raised Rates And The Market Went Up Anyway
The Fed raised rates this week and the index barely moved, but underneath the surface the RSP and the IWM have been drilled for weeks. My breadth readings went from 70% down to 20%, and that kind of stretch usually puts us in bounce territory. I also go through crypto, which was the strongest thing on my screen, and the Coinbase trade I put on today.
The Gap Pattern That Traps Traders Over And Over
What I want you to take from tonight is the gap pattern: when the S&P gaps 1% or more, that gap usually does not fill, and the drift lower traps traders who position for it. I show you how to trade it in both directions on a five minute chart.
The Market Dipped, These 3 Names Didn’t
While the broad markets were weak today, there were a few stocks that stood out. We’ll see if they have more to offer as we round out the week.
The Market Is Chopping, This Chart Is Setting Up
MDLZ has been stuck sideways and just came back down to support, and so far it is holding. I have bullish signals on the Compound Breakout Tool, squeezes stacked across the board, and some recent True Lows. My line in the sand is $60, and I walk through both the quick scalp and the bigger picture version of the trade.
Short Float, A Squeeze, And Earnings Coming
I found NEO on the options earnings calendar and the post earnings history is what caught my eye: a 15.4% move and a 13.6% move off the last two reports, plus a breakaway gap. It has a high short float, a squeeze building, and another report coming, so I bought the shares today rather than wait for the pre-earnings run to start. I would rather be early than late.
