Today’s Featured Trade: NVDA

I traded 2 stocks today with my A+ setup: ROKU and NVDA. This post will show why I decided to go long NVDA, when I entered, how I moved my take profits levels and when I exited the trade.

20 minutes before the market open, I alerted my subscribers on my private Twitter account about the two trade candidates for today:

ROKU: Pre-Market Alert

NVDA: Pre-market Alert

This post will discuss how I traded NVDA. Since NVDA started to move above its pre-market right after the open, I decided to go long the stock.

I bought the stock at $191 and set the stop loss at $190.

Immediately after buying NVDA, I shared this alert with my subscribers:

This trade satisfied all of my A+ setup conditions:

  • Bullish catalyst – Bank of America raised the price target on NVDA
  • Pre-market gap – very clean pattern before the open
  • Pre-market volume was relatively big – institutional traders were buying the stock
  • Bullish flow right at the open
  • The price moved above the pre-market highs

However, additionally, I remembered that somebody made a big bullish bet on NVDA last week. I posted about it here: https://yuriymatso.com/2019/10/06/bullish-bet-on-nvda/ When I see these kind of trades, I pay attention. This was clearly not an institutional player who made the bet but someone with the insider type of information.

As NVDA started to rise during the day, I continued to share my take profit levels with the subscribers:

Like this one when I moved my take profit to $195.

Or this one when I moved my take profit to $197.5.

Eventually, that was the level which was hit and I was out of this trade. As you can see from the chart below, I set my take profit at that level for several reasons:

  • It was slightly below the prior support level
  • I saw that the DMI Oscillator might flip to red at that level
  • If the stock moved down to that level, it would mean that it would break down below the diagonal support line

My entry and exit points on today’s trade on NVDA:

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