Three more trading days to make money on Nvidia (NVDA). Here’s my plan. (August 07, 2017)
We are just taking a quick look at NVIDIA ( NASDAQ:NVDA ). The stock closed at an all-time high today. They report earnings on the 10th. Happily that is like three full trading days away. They will report after the close on Thursday. The way this stock is trading, frankly, I am not making a prediction because that is not what I do and there is no money in it, but it wouldn’t surprise me to see this stock up close to 200.00 the way this is trading; up another 5 points today.
I am staying long this stock. If it works the way I believe it will, I think it should at least get up to 180.00 before earnings are released. It is evident that institutions are buying this stock now. It had trading below average volume, which is what you want to see in a consolidation phase. You don’t want to see a bunch of high volume, when the stock chopping around sideways, because what that reflects is institutional selling. It reflects a lot of activity where buyers are buying up the stock and then, Boom! Somebody dumps a bunch of shares on it and that drops it down and does it again. You don’t want to see that kind of violent trading on high volume.
What you want to see is this sideways consolidation on light volume. Declining volume even better. Today we are back up to normal average volume. If the market cooperates we should see increased prices here. Again, I think at least another $10.00, and I am probably being really conservative, between now and the end of day on Thursday. As far as whether you hold this stock over earnings? It is Monday evening, I can’t tell you that. I wouldn’t tell you that anyway. I will be holding some over earnings, but I won’t have a huge position because that is not what I do. But between now and the end of the day on Thursday I think there is a lot of money to be made in this stock and I think you should probably go make that money.