The Week Ahead 5/18
NVDA earnings week, Stocks to watch, SPY pivots
Good Morning Substack,
The Stock market finally found resistance after gaining steadily over the last 6 weeks.
SPY 3/31-5/14: +19%
QQQ 3/31-5/14: +29.8%
DIA 3/31-5/14: +11.5%
IWM 3/31-5/6: +21.27%
U.S. News
The Long Island Rail Road has gone on strike, shutting down the nation’s busiest commuter train line.
Roughly 300,000 New Yorkers ride the LIRR every day. The majority of these workers commute to and from the city that generates the most U.S. GDP.
Currently, the strike shouldn’t hold much weight with Wall Street. Today’s small gap lower has much more to do with drone strikes in the UAE and oil prices vs a railroad strike.
Earnings
All eyes this week will once again be focused on NVDA’s earnings.
HD 0.00%↑
HD is set to report earnings Tuesday morning before the market opens. HD stock is approaching an interesting area on the weekly timeframe that is certainly worth your attention in the coming week.
HD is approaching a trendline on the weekly timeframe that has previously acted as support.
HD pivot
300
Long above
Targets 315, 325
Short below
Targets 290, 285
NVDA 0.00%↑
After shooting higher to new All-time highs on Thursday, Friday saw NVDA sellers take control as the stock sold off >3.5%.
Overnight/pre-market trading has sent NVDA back to $230, gaining back about half of Friday’s sell off.
Interestingly, NVDA currently has some of the lowest 252d historical volatility it has experienced in the last year.
The compression of long-term historical volatility can be visualized on the weekly chart shown below. Prior to NVDA’s recent move higher had spent the majority of the last 3 quarters consolidating within a 14% range.
