Daily Commentary: August 27, 2024

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NVDA Is the Next Market Driver

Posted by Pete Stolcers on August 27
www.oneoption.com

The news is light and the market is searching for direction.

PRE-OPEN MARKET COMMENTS TUESDAY – The market is within striking distance of the all-time high after a 10% drop and bounce. Buyers and sellers are active and we can expect volatility.

Powell did not give traders any new information last Friday. They are ready to ease, but only if warranted. They need to see continued economic weakness. In my opinion, one bad jobs report is not enough to justify that with the market near the all-time high.

NVDA will report earnings this week and the news will be fantastic. That is expected and we’ll see if the number/guidance are good enough to push the stock higher.

We are heading into a holiday weekend and the volume will dry up Friday. We should see decent activity after NVDA. As we approach the end of the month, we are likely to see some fund buying (normal) and that could provide a little support.

From a swing trading standpoint we need a breakout or a breakdown. What would spark that? The Fed easing and chasing economic weakness is not what we want. If economic numbers stabilize or improve, we don’t need the Fed. That would spark a breakout and I can embrace that. If we start to see continued economic weakness but the Fed balks, that would spark selling. The market needs to blow through the all-time high or it needs to crush the 50-day MA. Anything in between is “no man’s land”.

Focus on day trading and take advantage of the volatility. Buyers and sellers are active and both sides are waiting to see if they should add to risk exposure or reduce it.

There are times when you can’t predict longer-term market direction. There’s no shame in it. The worst thing you can do is to force trades. This is one of those times where you have to wait for technical confirmation one way or the other.

I am going to conduct a live event today (noon ET) focused on our new trade signals. I will simply take requests. Provide me with the symbol and the timeline and let’s see how the trade signals performed. No “cherry picking”. I think you will be impressed. Click here to join the Live Event.

Support is at SPY $555 and resistance is at the all-time high.

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