NVDA turned sharply with double-digit gains on Wednesday to close out July, but that dissipated. Bill Baruch explains on the CNBC Halftime Report why it does not waver his opinion and why he added to NVDA.
Transcript:
Post split down to 100 bucks or just north of that. So it’s down yet another 5%. Today, I don’t feel when I do something like that need to catch the bottom. But what we saw earlier in the week where we saw on Tuesday after Microsoft’s report, it felt like capitulation in the market and, and I felt like there was just indiscriminate selling and in video, and then the type of momentum that took hold yesterday. Obviously, a lot of that has died out. But we’ll look at that is we trimmed in video at 130 announced on the show we trimmed micron by 25% at 155. And now instead of the show, Tesla 250. So there was cash ready to go back into this waiting for some sort of what felt like panic selling capitulation. So tapped in video back up and make it right, right there in the top three, Renee, you said but it was a couple of days ago, I
think it was on Tuesday how this was the most important chart, or that everybody was watching in video still.
So it’s been volatile what he’s have to say now.
So you had this you had this post earnings gap that I think takes the stock down into the 90s. Yesterday had a huge day to the upside. I would call that a kick save for the for the stock today. It’s look, I would tell you, I think Bill would agree. The volatility here is insane. This is a casino you’re talking about billions of dollars worth of options trading in one stock. This is a $3 trillion company that has the beta of a micro cap it makes really makes no sense the extent to which this stock is moving up or down on a day to day basis. I think ultimately, it’ll quiet down but I guess not yet. They still want to play here. So a lot of the intraday stuff you’re seeing in and video this is important. A lot of the intraday stuff you’re seeing here at Nvidia is related to zero day option expiration weekly options. It has nothing to do with fundamentals. And so if you’re going to be in this name, it’s really important not to let any one day’s activity jar you or get you to do something that you otherwise wouldn’t just understand noise trading
100% agree with that. And my plan was after trimming it to make sure I get more back on and I’ve said it I think I even said on the show I would love to see in video trade down to 110 area. I want to ramp this position back up ahead of its earnings report. I think they’re gonna have a terrific earnings report a couple weeks out because I mentioned the Huawei issue they’re not able to to produce the chip demand and meet with the Chinese companies. I don’t think it’s a coincidence that last week we saw Nvidia announced that they’re gonna have a China centric chip to meet regulations. I think they’re doing that to to meet to meet the demand the other
