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All Eyes Are On Jackson Hole

August 24, 2023
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Thursday August 25th 12:15 Am
G. Allan Collins

Good Evening,

Fed Chairman Powell speaks at 10:45 AM EST. The talk is that Mr. Powell is going to announce we are cautiously optimistic but we are not there yet and they will be Data Dependent. I’m more focused on Price action and the charts but just in case you wonder why theres High Vol tomorrow, the Fed and Powell is one reason among many.

SPY was down 1.39% to close at 436.89 today and as expected, NVDA had a great earnings report and they had an Incredible Beat And Raise again. What is wrong with this picture? How can Jensen Huang tell all the analysts, that dude J.C. and anyone who will listen how good their business is and how, according to Jensen Huang they are having their I Phone moment and telling everyone how amazing things are but somehow he cant come to a better understanding of how much business they expect to do. The Analysts who are paid millions of dollars can’t seem to get it right either? They all know business is up big time but somehow they can’t seem to adjust their models to come anywhere close to figuring out $NVDA’s estimated quarterly numbers, maybe they should ask ChatGPT?

Of course I am being facetious, We all know that Huang needs an extra few billion bucks for his leather Jacket collection.  So maybe we should give him a little slack… Nah I don’t think so. Jensen Huang and the analysts can obviously do a lot better at forecasting what their sales are going to be, I mean think about this for a minute. Supposedly Jesen is the grandfather of AI, as much as everyone wants to believe all this AI stuff is new to NVDA, the fact is, that they have been selling these chips to Brokerage firms so they can build AI trading bots and Algo’s that are almost impossible to beat, if you’re a Day Trader or you  know a former day trader, they can tell you all about it, I mean 95% of Day traders fail because, bottom line unless you have a trading system like mine that gives you an edge, then its almost impossible to be a profitable day trader these days, that is one important reason among many as to why I teach people like yourself how to Swing Trade.

I mentioned last night in our members post market call to short NVDA at $515, I was short some already about 4% lower so I averaged in, which is what I teach all my students….Do not blow your load on your initial position, always have dry powder and have as much of it as possible. So I mentioned it was going to come off those highs in after hours because of the price action and all the Institutional selling that our AI picked up in the Dark pool and there were huge block trades in the options markets as well and to the downside too. All you had to do was look at a level Two machine today and you would see that someone or some institution was leaning on NVDA all day, they were on the offer selling all day, like they had endless supply!

Back to SPY. As I mentioned, SPY closed at $436.89, we broke support at $440 again and the Bull are looking for support In the $434 zone than $430 and if we crack $430 look for $425.69. To the upside , resistance is at $448 then $450.

The Nasdaq 100 QQQ was down 2.14% to close at $361.22 bulls have support at $357.24, $353.26 and then a quick trip to $345.51. Resistance comes in up at $368.97, $370 and $376.72

The Vix is back on the bull trend if we crack through $18 to the upside we are looking for $20+ next,
if we doget above $20 look for capitulation and some panic selling along with forced sellin as well.

Watch support and resistance closly and remember, price action is king. STAY SHORT and use GTC Stop limits to minimize risk as always.

Open Common Stock And ETF Short Positions

Short QQQ
Short NVDA
Short TSLA
Short LRCX

Good luck.


G. Allan Collins




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