...while markets go into the weekend feeling somewhat more optimistic following Powell's Jackson Hole speech, next week market direction could be determined one way or another or upended with the release of NVIDIA's next quarterly results on Aug 28th (US time).
...NVIDIA could test a triple top, break free into new all time high or succumb to a correction that could drag Mag7 with it down, in a blindsiding move. This is the one to watch that could define September.
...on 1st April 2024, I wrote this post below which I believe will mark the end of the AI boom like thematic booms of the past- the observation that stocks always frontrun their eventual potential.
...when you understand the meaning of FRONTRUN, it suggests that stocks factor future earnings way in advance before their realisation. WA1 could scale up to a market cap above $1B before even generating any revenues, which suggest that it has significantly front-run ahead of delivery. WA1 Stock Price and Chart — ASX:WA1 — TradingView
...just like when I told LTR hodlers that the stock will not shoot the daylights as they had expected, when its plant becomes ready for production, as it had already baked in into the price, the most well publicised piece of information in HC. A once $2B company was well priced for profits of >$100mil, now mired with uncertainty which could see it produce either at a loss or marginal profits.
...as for NVIDIA, the stock valuation has imputed very lofty expectations, we will know in mid week if those expectations can continue to be met, in particular its forward guidance.
