It seems that Nvidia has replaced Amazon, Apple, and Google as The Most Important Earnings Report in the World. Strangely, the company has for some reason elected to have its earnings announcement weeks after everyone else has already left the stage.

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The big event is, of course, Wednesday after the close.

With a P/E of about 300, let’s just all agree the company is, umm, valued for growth. The last time they reported earnings, the stock exploded higher and dragged the entire market with it for another five weeks. It was earth-shaking.

Now, let me be clear about a couple of things. First, I have no position in NVDA at all. Zero. None. The chart is just a mess, and I want no part of it. Second, I’d love, love, love to see the chart get blown to pieces, although I have absolutely no basis at all for thinking it will do so. On the contrary, it may well repeat May 24th all over again and go ripping to God-knows-how-high. I think that’s very unlikely, but there ya go.

But just for the hell of it, let’s pretend for a moment that the stock does indeed gap down, and the gap stays put. In other words, let’s say NVDA shocks the market to the downside. What do you suppose the result of that would be? Off the top of my head, I’d say……..

• The public would start taking a much harder look at how overvalued companies have become;
• The ridiculous AI mania would have a stake driven through its heart;
• All the big name tech stocks (Tesla, Netflix, Meta) would take a hit, even though they have absolutely nothing to do with semiconductor manufacturing;
• The prospect of 4300 on the /ES becomes a foregone conclusion

To be clear, there is nothing about the NVDA chart that is indicating ANYTHING to me (up OR down). But it’s nice to indulge in a bit of pure imagination.

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