NVDA is my first buy in close to a month after being stopped out of everything at the beginning of the month. I bought a quarter position in the morning, followed by another quarter later in the day, bringing me to a half sized position at an average price of $238.86. Not in any hurry to add size until I get some traction with the shares I have. The green light to begin buying came on Friday's close, which was a follow-through day on the SPY & QQQ after Monday's day one bottom. Today the indexes continued to follow through, which gave me the confidence to add the second quarter to my position.
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AMD report (2/1/2022) has NVDA trading up ~5% after hours as AMD itself is trading up ~10%. Need to remain patient with this one as it still needs to reclaim a couple of key moving averages before it can really heat up. Thesis still remains that if the market has bottomed for now, NVDA has bottomed as well and will continue to lead the market up, but it could be a volatile process.
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QCOM report was good and the initial reaction was up, but the poor FB earnings report, containing weaker than expected numbers and guidance, weighed on the entire market and NVDA traded down with the rest of the market. If the market can shake off the weak report from FB, I still like the position and will stick with it as long as it can maintain above that 200-day line. If the market's reaction tomorrow is to slam everything down, I'll look to cut the position and watch for re-entry in the stock or other semiconductor names when the time is right.
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The poor FB report last night weighed on the market today. Even though NVDA sold off with the market, it was on lighter than average volume, telling me it was weaker money selling and that larger players were not interested in distributing their stock. AMZN and SNAP just had very good reports and are trading up big in the after-market hours, which is giving NVDA a slight boost. After this week's impactful earnings reports, tomorrow's close will be important and telling; a close on the highs will be a very good omen moving forward, while a close on the lows will be the opposite.
QCOM earnings report this week will be influential on how this position is handled. A good report should boost NVDA. If NVDA holds up after a bad report from QCOM, it gives me even more confidence in the position, so long as the market as whole doesn’t turn around.