BY BILL GRIFFO 

August 19, 2023 

Each week, I’ll give an overview of a stock and Licia Leslie will follow that up with a chart analysis the next day. Bill Griffo will chime in with macro analysis and Andrew Giovinazzi will then finish out the week with a volatility breakdown.

Have a stock YOU want us to review? Email my team here. – Mark

Hey Traders,

Nvidia (Ticker: NVDA) shines in all areas for a profitable tech company except for one – valuation.

Now we all know the valuation of a particular stock doesn’t necessarily matter thanks to the fear of missing out (FOMO).

NVDA is at the top of the FOMO list. After Q1 earnings, the company soared nearly $100 dollars, and that was just the beginning.

It reached a high just above $480 in July before trading off 16%. Now, it’s sitting just below a confluence of moving averages. 

We’re about to see a new trend develop from here … but where will it go?

NVDA’s fair value price sits at $300 so earnings next Thursday will fuel the next move. Here are expectations to weigh against:

Now, NVDA may take Apple’s (Ticker: AAPL) spot as the driver of the overall market. 

If NVDA earnings can beat expectations and start a new trend higher, it could ignite a new FOMO rally. 

However, if earnings are close to expectations, I would fade a move within the $400 – $480 range:

Interest rates are also critical to a renewed Tech rally and on this front there is promise. Check out the iShares 20 Plus Year Treasury Bond ETF (Ticker: TLT) chart below which triggered an RSI reversal pattern on Thursday’s new low:

This could be the start of a reversal in interest rates, which would give the whole market a boost.

Should be an interesting week … have a great weekend!

Live and Trade With Passion My Friends,

Bill Griffo