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NVDA Earnings Surprise and the US Stocks Watchlist – 24 May 2023

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NVDA is the most talked about stock in the after-hours today, following its earnings results and guidance. With a huge move to new all time highs (380.60 currently in the after-hours), which puts it at over 100% above its 23rd January Stage 2 breakout entry point (see the below chart from Januarys watchlist post). 

Thus, it's now extremely extended in the short-term, and testing a significant technical level (2021 highs), and so unless it decides to make a parabolic blow off move. Then some consolidation around the 2021 highs seems probable in the near term, as traders that have ridden it higher since the Stage 2 breakout or from even lower in the Stage 1 base structure take profits from a 100%+ gain in just over 4 months.

For those learning Stan Weinstein's Stage Analysis method. The NVDA chart at the Stage 2 breakout in January (see below) serves as a great example of what we look for, and also a key aspect of the Stage 2 breakout is that we are looking for a strong group theme to be developing with money flowing into the group and multiple stocks from the group developing in late Stage 1 and breaking out into early Stage 2 at the same time. Which was the case with NVDA, as the Semiconductors group etf – SMH, moved into Stage 2 at the same time, and multiple Semiconductors stocks were featuring in the watchlist posts before the groups breakout. 

So like the Home Construction stocks/group. The Semiconductors stocks/group is another great example of Stan Weinstein's Forest to the Trees Approach, in which the group theme is a key aspect. So if learning the method, it's another excellent example to study from this years market.

US Stocks Watchlist – 24 May 2023

There were 28 stocks highlighted from the US stocks watchlist scans today

CELH, SHOP, PANW, AMZN, + 24 more...

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Disclaimer: For educational purpose only. Not investment advice. Seek professional advice from a financial advisor before making any investing decisions.