Did you miss NVDA's move? What now?

NVDA's gap up on a stellar earnings report should NOT have been a surprise, as the chart has been showing strength since January when I mentioned it in my Morning Reports. It was completing the bottom at that time.

The trend upward was showing pro traders in control of price after Dark Pool quiet accumulation. It has 64% of the shares held by institutions, which is normal for a giant-cap stock. It should actually be a Dow 30 component rather than INTC but, alas, that won't happen for a while.

NVDA stair-stepped upward. This is probably one of the hardest trendline patterns to see without rectangles drawn around the step, but one of the most important to recognize professional buyer dominance.

What now? The gains are now extreme. And the pros are taking profits. That means there is very high risk for buying at this moment.

CAN it move higher? Of course! Euphoric retail buying can easily drive prices upward further for a short period of time. Just remember that without institutional buying at this level, any upside from here may be short-lived.

Martha Stokes, CMT

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