Why NVIDIA Fell Despite Beating Earnings
By Brandon Chapman, CMT
Hey trader,
NVIDIA reported earnings last night. They beat on earnings per share. They beat on revenue. They raised forward guidance.
The stock dropped.
Let me say this…understanding what broke in the NVIDIA thesis tells you why the market is rotating.
And it will help you understand what comes next.
Because stocks typically follow a simple earnings framework: Beat EPS, beat revenue, raise guidance, and watch the stock go higher.
NVIDIA checked the first three boxes. The market refused to check the fourth.
Strong numbers. Negative reaction. The market is telling you the growth story has a problem.
You see, NVIDIA's biggest customers are building their own chips.
Its growth model is financing its own demand.
The Ghost Prints Surveillance Console is showing where institutional money is going instead, which is currently into the high-flying gold trade.
You can avoid the trade setup where most traders get trapped.
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Of course you want to find these excellent opportunities.
Along the way, you need to skip over the pit of despair, the trap waiting to suck you in.
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