WATCH THIS BEFORE NVIDIA REPORT EARNINGS TOMORROW!!!

Tomorrow is the big day. Nvidia is set to report earnings and this is everything that you should know before it reports. What's going on guys? It's Ricky with Tech Boot Solutions here with a super quick market update. Nasdaq market ended the day up 0.62% but from where it opened at to where it actually closed at, it was slightly kind of a downturn, right? Lower highs, lower lows, a lot of that happened shortly after markets opened. We saw a big gap up, a retest of pre-market highs. We actually captured that in today's live trading session. Again, if you ever want to tune on into these live sessions, it's the second link in the description down below. We got rejected at previous highs and then went to retest the same support that we tested multiple times throughout the day. Now, during the extended hours, it's kind of a different story. Nasdaq has sold off during the extended hours and now bleeding into the overnight hours. But again, it's the overnight hours that's again a lot of volatility tends to present itself as it's lower volume. Uh so, we'll see how they actually end up trading tomorrow. The big thing is if you want markets to remain bullish, you really want them to hold above 700. If QQQ, which is the Nasdaq ETF, begins to trade below 700, then that's where things can get, again, very messy. But have no fear because Nvidia is here. Nvidia is set to report earnings tomorrow and very quickly, market expectation for earnings per share is $2.08 per share and revenue expectation is $91.9 billion. Now, based off of the most recent, I think it's the nine most recent times it reported earnings, what is that? Seven of them ended in the red, two of them ended in the green. The four most recent ones all ended slightly in the red except for the one for Q1. Looks like it actually ended um yeah, ended 4% in the red. Now, one thing that we do have to understand is that Nvidia is a very successful company for a reason. It has a fair value of $260 per share, but currently is trading at 213. Again, this is by a series of 58 analysts actually showing a mid-range of $305 per share. If you look at the overall P ratio, it's 32 times its earnings, not the most expensive it's been, and it's a company that produces $253 billion in revenue a year and makes over half of that, $159 billion in net income. Again, leading the AI revolution. Growth looks amazing. It's just it's everything that you would want to see. Now, I would really hate to see that if this becomes a buy the rumors, sell the news type of event. It seems like the semiconductor or may maybe AI infrastructure space, there's some uncertainty about overspending, how long this can sustain itself. Now again, Nvidia has very healthy margins, and I wouldn't say that is my biggest concern for Nvidia. The thing that I do want to share, again, if if if I can, is that I am invested in Nvidia long-term. Is it a super good deal at $213? No, right? I do believe that if overall markets, just like we talked about it, if overall markets begin to sell off, Nvidia will sell off as well. And I think that's just an important thing to acknowledge. I don't personally care to trade earnings, especially not with Nvidia, because again, yeah, it can push up, yes, it can gap down. I think that's besides the point. To me, Nvidia is a great long-term investment when there's significant downturns. That is when I love to just add a little bit more to my long-term position for Nvidia. And when it becomes very overbought and very overextended, then that's when I'm not afraid to maybe trim a little bit of my position. At this point, right, at 212, based off previous highs of 236 and recent lows of 193, it's kind of in the middle ground. I don't think it's anything um too attractive. I'm okay with missing out if it pushes up even higher. I mean, I'm not necessarily missing out cuz I am invested, uh but, you know, could I buy more? Sure. Do I really care to? No, because I don't think it's worth the risk, right? Looking at risk-to-reward ratios, what is my profit potential versus my risk potential? To me, it's just not attractive enough. It's not also my intention with Nvidia. I personally do not care to trade it. That is my take on it. That doesn't have to be yours. You can short the life out of Nvidia or you can go long on Nvidia. I personally do not get offended by other people seeing or having a different view on the companies that I'm invested in. Remember, we're not like the Bitcoin boys, right? Or the crypto bros. Um with that being said, talking about Bitcoin, did you guys see Bitcoin pushed up to highs of 81,000? It still remained quite elevated, so it's still bullish. So, again, it still doesn't make sense to really short it, but I did begin to short it today. I announced it to my LPP team. I made $5,396 and I left myself with just 700 shares. So, 700 shares is right around $87,000 currently shorting MicroStrategy and that is at an average price of 127. So, again, my average price is nothing special based off of recent highs. It definitely can continue to push up higher, especially if Bitcoin continues to push up higher, which is why I reduced my position to only 700 shares, but I'm ready for it. It's overbought enough that I'm excited to add more once and if Bitcoin begins to sell off, we all know that MicroStrategy, it's only a matter of time and it will come crashing down. Hey, wait, that's not MicroStrategy. Oh, this is Micron. I only made $376 on this one. I left myself with my one lucky share. It was showing a lot of signs of consolidation for the most of the day. I just got fed up with it and I left it alone. MicroStrategy is the one that I mainly focused on today and it's because it just it's so gapped up that I want to take advantage of this gap down once it happens. But let me make this very clear. Shorting comes at a greater form of risk. I am choosing to enter early, but I'm doing it with a smaller position size. That's the risk that I'm willing to take. Do not take the same risk as I'm taking if you're not willing to pay the price of jumping in early. What I mean by that is again, I'm not like the crypto bros that's like jump in with me cuz it's going to go to the moon. No, no, no. This is an incredibly risky trade. This is a momentum-based setup with Bitcoin cuz it's all hype and hype is currently present and if overall markets begin to push up higher, then it is possible that Bitcoin can continue to push up higher especially as Nvidia set to report earnings. If it props up overall markets, maybe Bitcoin rallies with it. So again, I have the option to, right? Because I'm trading with shares. If you guys are not familiar with it, again, I don't trade options. I trade with shares. I have 700 shares. I can close my short during overnight hours. I can't open up a short during overnight hours. That is why I was okay with holding a portion of my short overnight cuz just in case we do see a little bit of selling pressure going into the overnight hours, I wanted to make sure that I could take advantage of it really begins to break out, I'll accept it and I'll cut losses relatively pretty quick. Again, I understand that the overall trend is still bullish, but I'm okay with jumping in a little bit early with some exposure, but not too much. So again, I'll do my part in keeping you guys up to date. Again, $5,396. I love shorting companies, but there is no company that I love shorting more than MicroStrategy and that is a fact. So again, I trade live every morning with our LPP team. Whenever it is that you are ready, again, to watch me trade live, it's the second link in the description down below. And yes, it's a one-time payment for lifetime access. So, I really do appreciate you guys' time. Again, do not forget Nvidia reporting earnings after the markets close tomorrow. If you are uncertain about a specific setup or a specific trade, when in doubt, never be afraid to stay cash and stay out. Again, it's a very volatile time. If you're a beginner, do not take the risk if you can't accept it. Hopefully, I earned your thumbs up. Please consider subscribing. And like always, let's make sure that we end the year on a green note. Take care, team.