NVDA’s All Time Highs (and what’s next)

Jack Carter | October 21, 2024

Hey traders,

The other day I told you about how NVDA popped after Taiwan Semiconductor (TSM) reported earnings. It almost hit its all-time high before pulling back by the end of the day. But I also told you that I expected it to hit that level again soon.

Well, guess what? Just a few days later, NVDA did exactly that — and now we’re looking at new all-time highs.

I’ve said it before, and I’ll say it again: this whole AI thing still has a lot of juice left in it. And as the premier AI stock, I believe NVDA is going to keep cranking higher.

Now, this all falls in line with something bigger I’ve been keeping my eye on. But before I dive into that, let’s take a look at what’s happening with the broader market.

Let’s look at the three major indexes.

SPY

DIA

QQQ

Notice something?

Both the SPY and the DIA have been hitting new all-time highs recently.

But if you take a closer look, you’ll see that the QQQ has been lagging behind. It hasn’t yet broken through the all time high it made back in July.

Well, here’s my take: I think Q4 is when that changes.

I’m expecting tech stocks to rally, and the QQQ to start catching up with the other two indexes.

Earnings season is rolling on, and I believe we’ll see more momentum in tech as those reports roll in.

But wait — here’s probably the most important thing I’m going to say: always remember, the market can be unpredictable.

So no matter what I think, anything can happen. If you decide to play this idea, don’t forget to stick to the game plan where we sell options instead of buying them.

Trade well,

Jack Carter

P.S. Nate Tucci’s uncovered a way to target overnight income — up to 5 times per week. Get the details here!

Trending Stocks of the Week — October 21, 2024

Jack Carter | October 21, 2024

Nate Tucci’s using a CBOE change to target overnight income — every day the market is open. Check it out here!

Now for our top trending stocks of the week…

To help you discover the power of trends, every week I share with you a handful of the top trending stocks.

These stocks are picked by the custom-built TrendPoint software I designed to pick the strongest trending stocks in the market right now.

If you know anything about me, you know that every trade I get into starts with a trending stock.

Unless a stock is in a strong trend, I don’t want to hear about it. In my book, wishy washy stocks are the quickest way to losing money.

This Week’s Stocks

All three indexes have continued melting up, though the QQQ is still lagging behind.

This week’s three stocks are trending more strongly than the broad market:

  • CBRE
  • IRM
  • TMUS

And don’t forget about our previous list, which you can find here.

This week’s stocks show a strong trend and could still be in play for the next few weeks.

What can you do with these stocks?

Well, there are a couple of things you could consider — after doing your own research, of course:

  1. You could just buy the stock. This is probably the simplest thing you could do. Then just wait for it to go up and sell when you hit a profit target you’re comfortable with. This is only for stocks we’re long on. For stocks we’re short on, you can short them.
  2. You could buy an option. You know I’m not a fan of speculative plays, but every once in a while it doesn’t hurt to throw a little cash at a speculative option. Of course, while options can move bigtime if the stock goes up… the downside of options is that you have a time limit on how quickly you need the stock to make that move. So think about your risk tolerance and consider buying calls or puts depending on the stock recommendations above.
  3. You could do an income play. If you’ve been following me for any length of time, you know that I’m a big fan of income plays, because they increase your odds of winning. We do this by SELLING options instead of buying them. If you haven’t tried your hand at income trading yet, I urge you to try this exercise for yourself.

Without risking any money, it will really let you see the power of income trading and why it’s my favorite method.

Whether you end up doing naked puts, covered calls or some kind of spread (like this bull put spread example), income plays like these are really my preferred method to use when I’ve found a great trending stock like the ones on this week’s list.

Because even if the trend comes to an end, you don’t have to be exactly right. With a direction play like buying a call, you have to be exactly right. But an income play gives you a lot more “leeway”, where the stock can move against you and you still have room to breathe and win the trade.

That’s it for now.

Stay tuned, because I’ll be sending you a new list of TrendPoint Best Trending Stocks every week! (usually Mondays)

Trade well,

Jack Carter