Here’s your trade on $NVDA…and a few other stocks like $AVGO – May 15, 2024
Dan Fitzpatrick here at StockMarketMentor.com. I want to go back to an old favorite here.
I’m looking at NVIDIA ( NASDAQ: NVDA ) as a stock. They report earnings on the 22nd, which is next week. You’ve got to make sure you don’t get too enthused here and say, oh, I ain’t buying now because I know they’re going to blow the doors off.
Well, first of all, you don’t know that so try to calm down a little bit. I’m talking about the next week or so between now and the 22nd, which is seven days away, that’s next Wednesday at the close. I think the stock can really start to run as traders anticipate a strong earnings report.
If you look at the semiconductors, this is the index ( INDEXNASDAQ: SOX ), the same chart, they’re all looking pretty good too. AMD ( NASDAQ: AMD ) is even starting to perk up a bit. Micron ( NASDAQ: MU ), which is on our Active Trade List, is working. Broadcom ( NASDAQ: AVGO ), which is also on our ATI, Active Trade Idea List, is working.
So all of these stocks are working. In fact, frankly, I wouldn’t even have to go back to NVIDIA ( NASDAQ: NVDA ). This thing ( NASDAQ: AVGO ) is working, buy it now, there, you can thank me later. Seriously, these stocks are working.
Getting back to NVIDIA ( NASDAQ: NVDA ). This is the big dog, this is the one that everybody cares about. I think you should care about more than this, but you should definitely care about this. This is a stock after this, after several days of consolidation, almost two weeks, we get a breakout.
Now, note the volume, this is a 50-day moving average. This is all low-volume, really light-volume stuff here, which is actually a good thing. It’s a bullish thing if the stock revolves to the upside, which it does, it’s resolving to the upside. So you could say, okay, well this sideways consolidation is a good thing.
That’s right, but only if it is followed by a high-volume day, that’s what we’ve got to see. We’ve got to see a higher volume day, one that beats the average and is accompanied by, again, another move higher. Now, the ultimate high on this was 974.00. The way this thing is trading, it went up $32.00 today, almost $33.00 today, and it can pretty easily hit an all-time high even tomorrow.
So my suggestion would be to decide how you want to trade NVIDIA ( NASDAQ: NVDA ) if you want to trade it. I’ve owned it, as I think a lot of you have, I’ve owned it for a long time. It’s not really a stock that I would be trading right now but you can. If you got your wallet taken by GameStop ( NYSE: GME ) or AMC ( NYSE: AMC ), first of all, shame on you because I just told you a couple of days ago that this was going to happen.
The whole idea is to sell into strength because once the stock rolls over you ain’t going to get out. It’s not going to let you out, it’s like George Clooney and Mark Wahlberg in The Perfect Storm. Hope springs eternal until the boat capsizes. So NVIDIA ( NASDAQ: NVDA ), I don’t think that’s going to happen, I think you’re good here.
Free Chart