I'm Buying Nvidia With Corrective Action Poised to Continue
The dip buyers are going to work and panic selling could be next.
You've reached your free article limit
You've read 0 of 1 free Pro articles.
The dip buyers went to work immediately on Wednesday morning following a nervous start.
Worries are building about the Israeli response to Iran and higher oil prices. In addition, the ADP jobs report was a little hotter than expected, and that is creating some concern about a rebound in inflationary pressures. The jobs report on Friday is going to be very important in terms of economic confidence.
The question now is whether the dip buyers will stick around and keep things running. They started a little early in the day, and that could lead to some profit-taking before the close.
One of my favorite names, Humacyte HUMA HUMAW, is perking up this morning on increased volume. The FDA has delayed its decision on their acellular tissue engineered vessel (ATEV) for nearly two months now, and hopes are building that a decision will come soon. It has been an unusual situation since the FDA has not issued a complete response letter (CRL), which is usually the case if there is a problem. The hope is that the FDA is just short-staffed and will issue approval as soon as they can.
I have my eye on a couple of other larger biotechnology names that have been pulling back as well. TG Therapeutics TGTX is back to its 50-day simple moving average and has filled a gap on the charts. Lantheus Holdings LNTH is holding its 50-day and is building a base of support.
I mentioned last night that I was added to my position at Nvidia NVDA. I’m watching closely for more added points. My thinking is that optimism about NVDA will build before its next earnings report on November 14. It is holding right now at the 50-day, but if the market weakens, it could easily move back down toward the $102. I’m prepared to add shares down to that point and will be making some incremental buys as things develop. It is still two months until earnings are released, and there should be some volatility to trade in the interim.
I am not optimistic that this corrective action is over, but frankly that may not be a bad thing as it would create some better opportunities if we see some panic selling.
At the time of publication, DePorre was long HUMA, HUMAW, TGTX, LNTH and NVDA.
