On Monday Nvidia (NVDA) gained over 8% on hopes surrounding its earnings due out on Wednesday after the US close.
Tech stocks were also buoyed by a pushback on comments from WSJ’s Timiraos who believes Fed’s Powell is unlikely to talk about neutral rates at Jackson Hole.
The market is wanting to know if AI hype can translate into greater profitability for Nvidia and this could result in quite a volatile end to the week for Nvidia. From a seasonal perspective, Nvidia has an interesting seasonal pattern ahead.
From a seasonal perspective, September has been one of its weakest months, but Nvidia has still made more gains than losses between Aug 27 and Oct 11. However, when Nvidia has fallen during that time the falls have been more pronounced and the average return during the period has been -3.27%. So, will an earnings disappointment spark an aggressive sell-off in Nvidia?
Major Trade Risks: The main risks here is down to the earnings release as the market wants to see how much AI hype works into companies' expected profits.
Disclaimer: Past results and past seasonal patterns are no indication of future performance, in particular, future market trends. seasonax GmbH neither recommends nor approves of any particular ...
Disclaimer: Past results and past seasonal patterns are no indication of future performance, in particular, future market trends. seasonax GmbH neither recommends nor approves of any particular financial instrument, group of securities, segment of industry, analysis interval or any particular idea, approach, strategy or attitude nor provides consulting nor brokerage nor asset management services. seasonax GmbH hereby excludes any explicit or implied trading recommendation, in particular, any promise, implication or guarantee that profits are earned and losses excluded, provided, however, that in case of doubt, these terms shall be interpreted in abroad sense. Any information provided by seasonax GmbH or on this website or any other kind of data media shall not be construed as any kind of guarantee, warranty or representation, in particular as set forth in a prospectus. Any user is solely responsible for the results or the trading strategy that is created, developed or applied. Indicators, trading strategies and functions provided by seasonax GmbH or on this website or any other kind of data media may contain logical or other errors leading to unexpected results, faulty trading signals and/or substantial losses. seasonax GmbH neither warrants nor guarantees the accuracy, completeness, quality, adequacy or content of the information provided by it or on this website or any other kind of data media. Any user is obligated to comply with any applicable capital market rules of the applicable jurisdiction. All published content and images on this website or any other kind of data media are protected by copyright. Any duplication, processing, distribution or any form of utilisation beyond the scope of copyright law shall require the prior written consent of the author or authors in question. Futures and forex trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones’ financial security or lifestyle. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results. Testimonials appearing on this website may not be representative of other clients or customers and is not a guarantee of future performance or success.
