Trend Signal Now: Most Important Earnings Report Ever

Wednesday, November 20, 2024

The largest company in the world reports earnings after the close today.

Nvidia represents 14% of the entire Technology Index and over 8% of the Nasdaq100 $QQQ.

$NVDA is 6.7% of the S&P500 and over 22% of the Semiconductors Index.

So yes. It's a big deal.

And that's especially true with the underperformance from Technology stocks this year.

You can see in this chart above that the underperformance from Large-cap Tech started exactly when they hit those former relative highs from March 2000.

Here's a zoomed in look at how Tech relative to the S&P500 reacted to its first return back to those March 2000 highs.

Despite the lack of alpha from this group, the charts themselves don't look terrible on an absolute basis.

Look at Apple and Nvidia, the two largest components of the Technology Index:

Here's the Nasdaq100 below so you can see just how important this week will likely be for QQQs.

If the price of the QQQs is below those summer highs, this problem for Tech investors is likely to stay a while.

If you're long Tech, you really want to see the Nasdaq100 stick this breakout.

Today's Nvidia earnings are going to tell us a lot.

I will be streaming LIVE for Premium Members of ASC Research tonight at 8PM ET to discuss the earnings reaction to Nvidia and what we're doing about it moving forward.

Are we buying Nvidia? Are we shorting it? Are we doing nothing with it and focusing our attention elsewhere?

What else stands out to us outside of Nvidia and Semiconductors?

There's a lot to discuss.

Stocks, Rates, Commodities, Dollar, Sector Rotation, China's renewed participation and so much more.

You can join us LIVE tonight with a RISK FREE Trial and also get access to all our latest trade ideas.

Come on in and let me know what you think!

- JC

JC Parets, CMT | Founder, All Star Charts

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