This column is my opinion and expresses my views. Those views can change at a moments notice when the market changes. I am not right all the time and I do not expect to be. I disclose all my positions clearly listed on the page, and I do not trade my account on the stocks spoken of in this column unless fully disclosed. If that does not work for you stop reading and close the page. Do not bother me or harass me.
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Let’s Get Ready To Rumble
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The market always saves the best for last, and there is no better company to essentially close out the earnings seasons than Nvidia Corp. ($NVDA). The actual results could even be better than hype because according to the options market the post-earnings results move could be huge.
The long straddle options strategy using the $207.5 strike price, set to expire on November 17, are pricing in a 9 percent move. The cost to buy one put and one option is $18.58 which implies a post-market trading range of $189.00 to $226.00. A massive range for sure, one that means the market is expecting an enormous move in shares of the stock price over the next week.
Nvidia’s chart suggests shares could be set up for a pull back, it is worth noting, that my analysis on Nvidia was wrong the last time, but a few bearish signals are flashing that are worth noting. First, the stock has risen on declining level of volume. Second, the stock has been rising as the relative strength index has not, and appear to have topped out. Warnings signs are flashing.
Bottom line, the stock is set up for a massive level of volatility while the technicals are flashing warnings sign. Hold on to your hats! It is gonna be an exciting one.
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Acadia’s Post Earnings Analysis + OIL Breaks Out
Analysis Of Acadia’s Phase II Data, Plus QCOM/AVGO
NXP Would Benefit From Broadcom Buying Qualcomm
Cracking The Productivity Mystery
Productivity Issue In One Chart
Facebook, Alibaba, Apple Earning Preview
What Good Are The Analyst Worth!
Biotech shares are showing signs that they have bottomed, but now we need to the see the the turn higher. The IBB ETF has found reasonable support around the $312 level and has butted up against an uptrend line.
Biogen shares also appear to be flashing signs of a bottom being put in place.
Celgene seems like it is on the cusp of a move higher as well, and may try to refill that gap.
Finally, my last comments on Acadia will be this. The post-result trading action today entirely and utterly caught me off guard. The results, in my opinion, did not warrant a sell-off like this. But the chart shows sign the bottom may be near.
Oil has now officially broken out and looks set to rise back towards $62; it is a positive for the energy space and the XLE.
But you should be asking yourself what does it mean for inflation. It likely means this..
As my 3-year daughter would say: “Not Good!”
Free Articles Written By Mike:
Why Nvidia’s Stock Faces A Growth Crisis
Why Big Tech Stocks May Be Headed For A Steep Pullback
Disney’s Investors Suddenly Envision A Streaming Empire
Micron Could Rise At Least 15%, Options Trades Show
Broadcom’s Bid Could Spark A Wave of Chipmaker Takeovers
SNAP’s Stock Rebound Could Last If It Fires Up Growth
Apple Crushed 4Q Earnings, Chip Suppliers To Benefit
Elliot Management Steps Up Efforts to Raise NXP Bid Price
Chipotle Shares Could Fall 20 Percent Further
Broadcom’s Raised Forecast Is Great News For Chip Stocks
Starbucks 4Q Earnings Could Surprise Investors
Apple Shares Are Set Up For Post-Earnings Fall
Apple’s Chip Suppliers Are Breaking Out
Amazon, Alphabet And Microsoft Simply Crushed It
Why Mastercard’s Stock Could Rise 15%
Why Amazon’s Earnings Aren’t As Strong As They Look
Qualcomm Deal With NXP Will Eventually Get Done – M…
Celgene and Biogen May Be Signalling A Biotech Bottom
AMD Could Rise 10% Despite Results, Trades Indicate
Why Tesla’s Stock Is Breaking Down
Why Is McDonald’s Valued Like a Big Tech Stock?
Why Biogen May Sink Biotech Sector As Earnings Beat
Netflix Stock Likely to Rise as EPS Estimates Jump
Bank of America Could Rise Nearly 50%: Technical Analysis
AMD Could Break Out After Results
Qualcomm’s Bid For NXP Still Lacks Investor Support
Celgene’s Sharp Sell-Off Is Likely Overdone
Procter & Gamble Continues To Have Two Big Problems
GE: Getting Excited For The Future
Why IBM’s Big Stock Rally Won’t Last
Allergan Shares On The Verge Of Further Breakdown
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Michael Kramer and the clients of Mott Capital own shares of ACAD and CELG
Mott Capital Management, LLC is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Upon request, the advisor will provide a list of all recommendations made during the past twelve months. Past performance is not indicative of future.