Nvidia is now up more than $100 from the pre-earnings price, and I think it has a lot further to run. Here’s your trade! – May 24, 2024
Dan Fitzpatrick here at StockMarketMentor.com. I want to talk about NVIDIA ( NASDAQ: NVDA ).
The day before yesterday was the day NVIDIA ( NASDAQ: NVDA ) reported earnings, and then the stock was up so much. I mentioned to people in the Free Chart Video that I thought the best way to get into this, if you weren’t holding a position over earnings, was to realize that the earnings were so strong that this was not going to be a gap and reverse.
It wasn’t going to be, okay, NVIDIA’s ( NASDAQ: NVDA ) done, let’s take advantage of the knuckleheads buying and selling all this stock, and then we’ll move on. It wasn’t going to be that kind of stock. This is a trade that’s just getting going. There’s a lot of blue sky overhead here.
My suggestion was, you start a position. And then as long as the stock is working in your favor you gradually build onto that position. Always have a protective stop in place, so that if there is ever a time when, for whatever reason, NVIDIA ( NASDAQ: NVDA ) reverses you know the maximum amount that you’re going to lose.
You have that failure built into your system. And as long as you’re able to do that you can ultimately wind up holding a pretty big position in the stock. I still feel that way in spades. The intraday low here was much higher than the prior days. The intraday high was higher than the prior days.
This is the enthusiastic, Hey, earnings are awesome, we got to buy the stock. That was the high from yesterday, 1,063.20 was this high. So today, not only did the stock break through there, but it was in the afternoon that it did that. I guess it did just before the close, it was here, and that’s what set the high. I actually thought that it surpassed that in the afternoon, and it did, basically, right at the close.
After hours, or during market hours, it doesn’t matter. The stock is now above, it’s actually at a new high here today. So my suggestion is, again, you just stay long this stock. They split the stock 10:1 on June 10th. I’m going to go out on a limb and say that before June 10th I can see this thing trading at a $1,250.00 handle.
That’s not a prediction, I’m just saying it just feels to me like it could do that, what I’m talking about is a gamma squeeze. I think we’re going to get a pretty significant gamma squeeze here on this stock. So there’s going to be a lot of money to be made.
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