Rally Gathers Steam. Take $1089 Gain on SPG. Focus Shifts to NVDA Earnings.

Yes. I have an NVDA option trade in this one!

I am recommending taking a nifty thousand dollar-plus two week paycheck on our recent trade on Simon Property Group (SPG). Here are the details:

Simon Property Group (SPG). Bought 8/9/24: $157.  SOLD 8/26/24 intraday price:  $167.89. Return for this trade: $1089/100 shares (6.93%).

Rally Continues as Momentum Builds

This morning, the stock market, once again led by the New York Stock Exchange Advance Decline line (NYAD) is rallying on the heels of the Fed’s pivot.  Meanwhile, investors are now fretting about the upcoming earnings report from Nvidia (NVDA), due out 8/28/24 after the market’s close.

NYAD retained its torrid pace, with another new high this morning, while now entering overbought territory as RSI is above 70.  Markets can stay overbought for much longer than anyone expects.  But this signals that things could slow down in the next few days, at least for a short period of time.  On the other hand, NYAD should find support at its 20 and/or 50 day moving average.  This remains an uptrend until proven otherwise.

The U.S. Ten Year Note Yield (TNX) remains calm, trading below 4%.  Until this is reversed, it will provide some calm to jittering stock traders.

For its part, NVDA is marking time until its earnings are released.

Incidentally, thanks to Eric S. Lipchus for an excellent review of the NVDA situation. I highly recommend reading this one. And since Eric isn’t alone, this week’s trade is …wait for it… an NVDA option trade.