Stock Trends

Nvidia's earnings reaction, other growth stock movers and transport weakness

Good morning,

Well. They did it.

Or at least it looks like they’re going to do it.

At the conclusion of their earnings call last night, Nvidia was up more than 6% and above $1000/share for the first time ever.

It’s the trading today and tomorrow that matters, but that would be enough to clear “This week’s level to watch” from our Monday Morning Playbook.

The company also announced a 10:1 stock split, so you can tell your local bear that Nvidia will soon be trading near $100/share…

This week, we’ll break down Nvidia and potential targets as well as:

• Semis moving in sympathy

• Large-cap growth stocks

• Healthcare breakouts

• Transport weakness

• and more!

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Nvidia’s reaction

Want to see a strong weekly close above $974

Nvidia was up 6% at the conclusion of their earnings call, less than the +/- 9% move the options market was pricing ahead of the report. That’s positive amid high expectations, but we still want to see a strong weekly close above $974 because many momentum measures are pointing lower. If we do get a sustained breakout, the recent base measures to $1192.

Like the setup in Broadcom

AVGO snuck out of its base last week and has been forming a bull flag. If the stock can hold a positive move today, that should signal the next leg higher.

Boost to Blue Chip Hot List stock Taiwan Semi

TSM has been on our Blue Chip Hot List since early March and while the first few months were rocky, the stock is finally breaking out again. It’s already making 52-week relative highs and needs just a 1.4% gain today for a new all-time high.

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Large-cap growth focus

Alphabet remains leadership

Oh no. They didn’t tell you Google was going to lose its hold on search, did they? Alphabet held its breakout above $151 perfectly and continues to make new absolute and relative highs. A Mag 7 leader.

Higher low for Tesla

I called out the inverse head and shoulders pattern in Tesla in Tuesday’s Mailtime report and it seems like that’s the day everyone else noticed. The stock rose more than 6% intraday and now has firmly carved out that right shoulder. Just remember, the pattern isn’t complete until the neckline is broken, so if you’re trying to jump in early, you’ll need to use a stop. $167 is the current right shoulder low point.

52-week high for Netflix