On the eve of
NVDA
earnings report, it is interesting to note the $NQ price volume support has turned into overhead resistance as the $NQ struggles against the 0.786x retracement level and higher interest rates.
The correction in 2022 was all about higher interest rates choking off growth and lowering implied equity premium to above +1x standard deviation. Now that the 10-yr rate has broken out of consolidation and 5% looks within reach, is the second half of 2023 going to any different from 2022?
Having said that,
NVDA
earnings and US government deficit spending might just send the $NQ on a 0TDE rocket ship ride to the moon.
Not really a hero trade territory as both outcomes are likely to be binary and violent. 2 key levels to watch: 14450 for the bears and 15250 for the bulls.
Happy hunting and stay safe!
NVDA
earnings report, it is interesting to note the $NQ price volume support has turned into overhead resistance as the $NQ struggles against the 0.786x retracement level and higher interest rates. The correction in 2022 was all about higher interest rates choking off growth and lowering implied equity premium to above +1x standard deviation. Now that the 10-yr rate has broken out of consolidation and 5% looks within reach, is the second half of 2023 going to any different from 2022?
Having said that,
NVDA
earnings and US government deficit spending might just send the $NQ on a 0TDE rocket ship ride to the moon. Not really a hero trade territory as both outcomes are likely to be binary and violent. 2 key levels to watch: 14450 for the bears and 15250 for the bulls.
Happy hunting and stay safe!