The Long Investor

$NVDA

Added 2024-02-21 18:26:23 +0000 UTC

The big earnings report is due in less than 3 hours now.

The main cause of the market running over the last year has been due to the hype around AI/Semis and Tech in general and $NVDA has so far delivered on their hype by reporting blockbuster revenue growth and justifying their attraction....the adverse effect is that many people believe that most of these tech companies are going to behave like $NVDA, if their share price is going to move like $NVDA, then their revenue needs to deliver.

$SMCI is feeling the repercussions of this now after behaving like $GME during the Game Stop epidemic, it may not be over for $SMCI either, where many more bag holders will be created again.

I have $NVDA completing Wave 5 here at the normal 2 Fib level at $711, it did go slightly extended but it did not hold and that is why I believe there is a pull back now leading to earnings because it got such a strong run up to Wave 5 with the anticipation of a strong report.

If $NVDA miss in any way or give a weaker than expected guidance then $NVDA will sink further to the white Fib levels as shown.

If they smash it again, this Wave 5 can go extended to the green Fib levels as shown above.....its a 50/50 call right now and something I rarely play.

I personally want a civilised beat so the market is safe to complete Wave 5 with one more leg up to go.