SPR - We Could See More New Highs In Stocks 4 Things Could Shut It Down
2024-02-26 01:34:44 ET
Summary
- Nvidia's strong earnings performance led to a surge in short covering and pushed the stock market higher.
- Four factors that could potentially hinder further market gains include rising interest rates, hawkish Fed speak, increasing inflation, and the upcoming PCE reveal.
- Despite potential risks, I remain optimistic about the market in the short term and highlight trades in NVIDIA, Adobe, Arista Networks, and monday.com.
Let me first address the big question from last week's article I Was Concerned About The CPI Last Week, More Selling This Week . I was concerned that we would have more downside action last week, and we did have selling at the beginning. The real question was whether NVIDIA ( NVDA ) would outperform on earnings and revenue once again, and clearly, it did. What I shared with my members last week was that if NVDA would off hard enough before the earnings report, it could be enough to "inoculate" the stock from a "sell the news" reaction. In my last article, my thought was that everyone was so expecting NVDA to blow the numbers out of the water that there wouldn't be enough buyers to take the name higher. We saw the day of the earnings report, which was after the market close, NVDA on Wednesday the 21st sold off pretty strongly. Let's look at the chart:
We Could See More New Highs In Stocks, 4 Things Could Shut It Down