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Markets on Pins and Needles Waiting On This Stocks Earnings Call
Contributed Opinion

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Michael Ballanger Michael Ballanger of GGM Advisory Inc. shares his thoughts on Nvidia Corp. as the market awaits today's earnings call.

All eyes, ears, stethoscopes, and microscopes are trained on the after-the-bell earning report from Mag 7 darling Nvidia (NVDA:NASDAQ) which lost 4.8% yesterday but is up 46% YTD and up 472% since the lows in October 2022. NVDA is also the poster child for the Mag 7 group, so if the market likes the forward guidance as well as the EPS number, the entire group should be fine.

However, expectations are in the clouds for a "big beat," so we could be witnessing a classic "sell the news" setup and possible near-term correction in the U.S. markets.

The chart of NVDA shows a diverging RSI now coming out of the plus-70 "overbought" territory, where it spent a full five weeks as the stock price ascent went from "gradual" to "near-vertical". That parabolic arc to the all-time high of US$746.11 may have left behind a classic "exhaustion gap" from the US$660 level so when added to the bearish MACD crossover and bearish Money Flow Indicator, it certainly appears as though NVDA is ripe for a move down to at least the 50- dma at US$574.02.

The 100-dma is at US$514.15 and the 200-dma is at US$464.60, although I strongly doubt that the Wall Street spin doctors will tolerate a move of that magnitude. The NVDA earnings call is at 5:00 pm, with the actual earnings expected after the closing bell. According to those who trade the tech sector for a living, it will be the forward guidance that will determine the next big move in NVDA.

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Important Disclosures:

  1. Michael Ballanger: I, or members of my immediate household or family, own securities of: Nvidia Corp. I determined which companies would be included in this article based on my research and understanding of the sector.
  2. Statements and opinions expressed are the opinions of the author and not of Streetwise Reports, Street Smart, or their officers. The author is wholly responsible for the accuracy of the statements. Streetwise Reports was not paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Any disclosures from the author can be found  below. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy. 
  3.  This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company. 

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Michael Ballanger Disclosures

This letter makes no guarantee or warranty on the accuracy or completeness of the data provided. Nothing contained herein is intended or shall be deemed to be investment advice, implied or otherwise. This letter represents my views and replicates trades that I am making but nothing more than that. Always consult your registered advisor to assist you with your investments. I accept no liability for any loss arising from the use of the data contained on this letter. Options and junior mining stocks contain a high level of risk that may result in the loss of part or all invested capital and therefore are suitable for experienced and professional investors and traders only. One should be familiar with the risks involved in junior mining and options trading and we recommend consulting a financial adviser if you feel you do not understand the risks involved.

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