Nvidia FEAR LOOMS, Fed Cut Odds For Next Week

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Hey Options Trader,

We are going to look under the hood of this market for next week. Inflation data came in Thursday and next week the Fed is announcing their decision on cutting rates or not. The markets were quite choppy, but a few names really took charge.

Here’s what we are covering:

1. $QQQ Price Prediction - Overall Economy

2. $NVDA approaching key support levels, can they hold?

$QQQ Price Prediction - Overall Economy

The Nasdaq 100 hit an all time high today. Mostly being propelled by Tesla and some Pharma stocks. Inflation came in at 2.7% which was the expectation for this reading and the market liked that as well. The Fed cut odds are about 97% for a 0.25 basis point cut on December 18th.

Lower Rates = More Cash Chasing Stocks + Higher Consumption

My price prediction for $QQQ is $550 by end of January, before we see a brief pullback. Everything is pointing to a market melt up situation. I would not be bearish at this point in time. I will keep you updated on when I start to stack cash again.

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$NVDA Approaching Key Support Levels, Can They Hold?

Nvidia is looking like the weakest of the Mag 7. It just can’t seem to catch a bid ever since the last earnings report (which were PHENOMENAL btw).

Im eyeing the $130 level for additional support and a bounce. Worst case we plummet to $123 before resuming higher.

Keep those levels in mind if you have extra funds on the side to add to your position. This is what i’m doing as i’m pretty much fully allocated to my NVDA allotment. I will add more at those price levels.

Overall this is just NVDA taking a breather. Nothing has changed fundamentally in a negative way. We must have periods of consolidation to push higher.

Nvidia also has enough cash to cover its debt almost 4 times over which is what I like to see for a long term position.

Here’s a quick vid on my current position!

My $NVDA Position Revealed

See you on Monday, have a great weekend!

-Ryan