Triple Threat Of Key Reversals: Warning Shots Fired In 3 High Fliers
Portfolio Pulse from Aaron Bry
Three high-flying stocks, NVIDIA Corp (NVDA), Eli Lilly and Co (LLY), and Super Micro Computers Inc (SMCI), experienced key reversals on Tuesday, opening at new highs before trading below their previous closing prices. Despite initial drops, all three stocks recovered some losses by the end of the day. The stocks have seen significant year-to-date increases, attributed to strong demand in their respective sectors. A trader from T3 suggested Nvidia might be setting up for a short trade.
February 07, 2024 | 11:45 pm
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NEUTRAL IMPACT
Eli Lilly reversed from new highs after a strong earnings report but made back some losses, driven by demand for weight loss drugs.
Eli Lilly's recovery after the initial drop and continued demand for its weight loss drugs suggest a neutral short-term impact, despite the day's volatility.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 90
NEUTRAL IMPACT
NVIDIA experienced a key reversal but recovered some losses by the end of the day, amidst strong year-to-date gains driven by AI chip demand.
NVIDIA's recovery after the key reversal, combined with strong demand for AI chips, suggests a neutral short-term impact. However, caution is advised due to the potential for a short trade setup.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 90
NEUTRAL IMPACT
Super Micro Computers experienced a key reversal but recovered by the end of the day, with strong year-to-date gains supported by AI chip demand.
Super Micro's recovery after the key reversal, along with the strong demand for AI chips, indicates a neutral short-term impact, despite initial volatility.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 90