29 Aug

Nvidia’s Forward Guidance Was Light

August 29, 2024

Source: Michael Ballanger (8/29/24)

Michael Belanger of GGM Advisory Inc. shares his thoughts on Nvidia Corp. (NVDA:NASDAQ) after their earnings were announced, and shares two ETFs he has his eyes on.

Nvidia Corp. (NVDA:NASDAQ) reported earnings just after the close, and as expected, they had a blow-out quarter, but the forward guidance was deemed to be a tad “soft.”

The stock is also down over 5% in after-hours trading.

Traders are indeed looking out to September, which has earned a reputation as a “bonus killer.”

While the stock is not exactly crashing, it bodes poorly for the next two trading sessions (month-end book squaring) and for the month of September.

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Volatility had a great day as the 2x Long VIX Futures ETF (VIX:INDEXCBOE) was up 11.08% and the VIX itself up 10.89%. I own 6,000 shares at an average of $4.50 so with NVDA sure to drag the other Mag Seven issues lower, it should also give volatility a shot in the arm.

I wrote on August 5 that I was liquidating all of my market hedges, which included all volatility and “short stocks” ETF, but that there was ultimately going to be a re-test of those lows seen on the “carry trade crash” day, and I continued to plan for such a re-rest. I think that re-test started today.

I am going to look at the Invesco QQQ ETF (QQQ:NASDAQ) November put options tomorrow pre-opening but for those yet to buy the volatility trade (UVIX:US), if it opens under $4.75, it should be bought.

 

Important Disclosures:

  1. Michael Ballanger: I, or members of my immediate household or family, own securities of: All. I determined which companies would be included in this article based on my research and understanding of the sector.
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Michael Ballanger Disclosures

This letter makes no guarantee or warranty on the accuracy or completeness of the data provided. Nothing contained herein is intended or shall be deemed to be investment advice, implied or otherwise. This letter represents my views and replicates trades that I am making but nothing more than that. Always consult your registered advisor to assist you with your investments. I accept no liability for any loss arising from the use of the data contained on this letter. Options and junior mining stocks contain a high level of risk that may result in the loss of part or all invested capital and therefore are suitable for experienced and professional investors and traders only. One should be familiar with the risks involved in junior mining and options trading and we recommend consulting a financial adviser if you feel you do not understand the risks involved.

 


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