Wall Street lost big value as traders started dumping tech stocks stating that the AI Boom has created too much hype, but our view is intact…
Dear Members,
On Tuesday, the Indian market performed very well but the rest of the global markets lost value. Friday’s selling pressure continued Tuesday as well. On Friday SMCI collapsed, and traders are worried whether the NVDA results will bring a huge sell-off in the market. Even though we don’t see this happening, when everyone starts dumping stocks, it could trigger a sell-off.
There is no doubt that NVDA falling could put massive selling pressure on tech stocks on Wednesday after market hours.
Today we have the FED minutes, and after the market closes we have the NVDA earnings which will dominate the trend.
On Tuesday the market lost value, and tech stocks witnessed huge selling pressure due to nervousness about the NVDA earnings because it will break or make the market's trend.
I don’t know why the market and media are making investors so nervous. NVDA is one of the most important companies on the planet because it will not only give a new direction to the tech world, but also to corporates, pharma, legal, and every other area that exists on the planet.
NVDA is not able to deliver AI chips due to the insanely high demand at this stage, while their new AI chip is coming out in the second half of this year; and another one in late 2024 to early 2025. It will stay far ahead in the race to make these chips so keep betting on NVDA, and one must hold long positions in NVDA. NVDA will announce positive earnings, it will beat expectations, and their comments will be very robust, which may push the stock sharply higher. NVDA will dominate the AI chip sector for the next two years and will become the most valuable company on the planet along with MSFT.
AMD, ARM, MU, INTC, AVGO, TSM, and ASML will also walk along with NVDA. A new era for the tech world is starting and it will be an amazing one for investors for the longer term. Yes, in the short to medium term some volatility will occur in 2024.
The downside is very limited for NVDA, it needs to close above $725, which will push it towards $781 and $839 so remember these levels.
Our prediction for NVDA is very positive today so stay long as the medium-term trend is extremely bullish. You can buy call options in NVDA if you don’t want to play with the stock. After market hour there will be some volatility, but Jensen's comments will push the stock sharply higher. The downside is limited in NVDA, also buy TCOM which will announce earning also after market close on Wednesday.
Overall Wednesday and Thursday are very supportive astro days for the market so buying is recommended.
This is what we mentioned yesterday: Positive earnings of NVDA will push TQQQ, NASDAQ, and SOXL to the next level. In the short term, SOXL can easily test $50 as predicted last month.
We are recommending buying NVDA or holding longs in NVDA rather than putting your money in other instruments or other trades because if NVDA goes down then everything else will fall, especially semiconductors and NASDAQ.
The overall Astro combinations of this week are very supportive from Tuesday so let’s hold our long positions in NVDA. Our first target of S&P reaching 5000 and NASDAQ 18000 was achieved. Our next target is 5375 and 20588 for S&P and NASDAQ respectively which will soon be achieved.
I don’t want to talk about anything else this week. Stay away from any new buying in TSLA and APPL at this stage. Most international investors are watching Japan, China, India, and European market trends closely. Yes, Chinese stocks look like great bets for the short term as they bottomed out last as predicted so buy BIDU, BABA, YINN, and CWEB.
The Indian market is struggling but holding value around the higher sides as predicted, tech stocks must take the lead from here onwards.
This is part of the Daily stock report:
https://www.mahendraprophecy.com/stock-investment-report.php
Thanks & God Bless
Mahendra Sharma