The Big 3: NET, NOW, NVDA

when you have someone that actually cares. Welcome back to trading 360. I'm Marley Kayden. It time for the big three. We've got three stocks three charts and three trades for you. Ricktte of course taking us through the charts here to take us through the trades is Dan managing partner over at JM financial. Dan great to have you back with us. Love to get your thoughts on the action that we're seeing today. We got ISM in with much higher than expected prices, but we are still seeing some expansion in September across manufacturing, but seems to be weighing us down a bit today. How are you looking at the market open so far? Yea mean the market's just trying to manage the different cross curr right now. Marley. You know certainly September by and l based on historical metrics, but nonetheless really tried to find a little bit of escape velocity late in the month and was unable to. And now once again today, some disappointment after initial pop on the opening. So, you I just think that again, the market continues to look for that next catalyst. We'll see if the labor market data tomorrow will be th catalyst. Certainly when you look at the interest rate environment, it iseresting that now they've extended that runway possibly. And now, you know we could not we may be on hold for the end of October to be determined by some of the data that's still to come out. But at least for the short term, it looks like the runway has been extended a little bit as far as possible hikes. But nonetheless, the market still anticipates hikes in the future ba on the back end of the curve. Yeah, the percentages have certainly shifted tober's favor in termswhen we're going to get that hike. The timing. But let's dinto your big three. Your first trade today is Cloudflare. We are seeing software move higher because of th results we got from Accenture. Cloudflare also popping up about right now. How are you looking at Cloudflare? Yeah, I mean, w positioned in the cloud services and cybersecurity area. Again, I think that, you know, from a technical standpoint, it looksit's regaining itsfooting a little bit recently. And I ex another leg higher in the stock over the course of nel right Rick, so as we look at it, we about 76% year to date. But as Dan just mentioned, we are down a little bit more than 3% over the last week of trading. So what are you seeing in the technicals here for Cloudflare. Yes a bit of a pu after hitting t highs 36743. From there you could say that we hrmed a very short term downward sloping trend line in white. You also cou say that we have formed an upward channel between our twolue lines. That since been perhaps broken during the past couple sessionse. So it remains to be seen if this will be the start ofarger pullback or not. But for now, I think you could also perhaps consider that this could be a bull pennant type of situation here where we had a strong rally to the upside. This could be the sideways to downward consolidation phase that often continues. And those initial highs are then breached. Certainly not saying it's going to happen. Justaying this is acommon pattern. Traders are often on the lookout for an extreme relative low recently here. 339 as well as here. 313 A gap opened up here. 289 notice as well, our longer term upward slopi trend line is still in play. That has spanned for about half of the past year or so. We can see now our five day EMA ink blue is about three 5043 or so, so we are that level. If we were to break lower, our 21 day EMA representing one month is at just just below. 333 RSI. Our measure of momentum green trend line has been broken. We are above the 50 mid line so more of a bullish lea But I do notice as well a little bit of a bearish divergence here. Perhaps suggestive that our pace of the gains is starting to slow somewhat here.t you would typically want to see would be RSI and price mak concurrent with each other. So now our volume profile shows a node here as well as here. So these areas between about 345 to 360 and 295 to 315 sta out as heavy trading volume areas. Right now we're at 35161. So Dan, if you were goi trade this name right now, how would you approach a trade here? Yeah, I you know, over the next month or two, I do think that there's a potential here for further upside. And so the today's trade example i to just basically own the stock. A buy right trade example today to buy the stock where it's currently trading and then write the 400, the November 4th hundred call. You can sell that. Well it was tng 346 earlierfor a little higher now, but nonetheless allows for a nice capture zone to the upside over the next 50 trading days with the again, the opportunity to own the stock possibly longer term, because do think longer term this is still a stock that look appealing and lowers to break, even if we're unable to get up to that 400 level in the next 50 days. So the idea here is possibly lower the break even. And if we do see an explosive move up, then have exit point above 400. All right. We do have an earnings event in here. They have the earnin October 29th. potential catalyst to move us higher for Cloudflare right nowut $50 below that $400 level. But let's talk about service. Now. You've got another software name in the big three today. What are you seeing in service now? Dan. There's another theme there too. Marley but it's pretty the e endheme today, right? But yeah, so ServiceNow, certainly another software name, as you pointed out, and also And again, longer term, this is a position where I think you're going to continue to see evolution of their pipeline continue to build in the 2027 or through 2027. So I think that there's opportunity here to capture further upside. If we do see this continuation of the reversal. All right. So different, completely different chart here, Rick, as we're looking at at service now under a lot of the last year and particularly of late. So takeusg in the technicals. Yes a nice rally that we've seen sir earnings event occurred on July 22nd. But to be sure, dow 30% or s from our yearly highs all the way back there near 193. So recently we have trended upward here, but that's been broken. Our bluerend line has been breached. Now the prevailing shape is a falling wepe of pattern where our two boundary lines are both pointing downward but converging toward each other. Now, kind of counter-intuitively, this is viewed as being more of a bullish type of setup. But really what you're looking for is a break beyon either of those two lines for a breach of a significa technical area here that would then hopefully for, you know, your directional bias, trigger a breakout of these kind of runaway surging prices. So we can see then an ha standout area here upside, a gap that was filled and then became a repeated floor around 142 or excuse me, 135 also sout. And then also here. 126 another g level to consider. So now our moving averages are quite a different picture once again. But we do have a confluence five day and 21 day tog near about 134 to 135 or so. Our long term 251 day EMA in orange representing one year is h lines up with our lower boundary line and stands out as a supportive area. Once again, RSI is a hair above the 50 mid-line. Here, our downward sloping trend line is in place still, for now, we seem to be holding on to this supportive confluence of our moving averages. So look to see if the bulls can reat themselves and bre above that downward sloping trend line with some conviction and make some new relative highs. So now our volume profile kind of showing us that much of the heavy trading activity was at far lowers here. The most important areas to watch close to where w are now, right here between about 123 to 126 stands out, one here around 135 or so, and then a couple of isolated pockets here, 152 to 157 and about 160 to 165. All right. Right now we're at 13545 for service now. So Dan what's your trade for service now. Yeah. So we've drifted a little bit lower here since I looked at this a little while ago. But nonetheless the idea here is, as Rick pointed out, support at as well. So the trade example today is a reversal. Again this is in November. So 50 days o And it's selling the 130 put and buying the 150 call. That a8 half. Now it's probablye done for a credit. So that lowers the break even below 130 But to me, I think if we do see some weakness over xt month or so and it closes below 130, it's not a bad level to pick theck up. And if there's further upside, and we do see a continuation of th reversal that this trade example should allow to capture that to theide. All right. service now up percent as well today moving a little bit higher more broadly with the software sector, as you said, we've got another theme. We ha Net we have now and now we're talking about Nvidia. So let'svr the big three. It just kind of fell out that way honestly. But h Nvidia certainly a very highly watched name in t market and has been able to show some relative strength here recently. And again, I think a name that will possibly challenge the upper bound of the range here he course of the next quarter. And so again, I do see Nvidia maintaining this upward cycle and potentially breakingts we move through the quarter. All right. So let's dive into the technicals on Nvidia then. Are you also seeing the potential for ather breakout as we move into this new quarter. Well we are near a rece area. We are onlyout 2.7% d highs. That area right here. 23654 is that high water mark. But below that, though, we have not quite made it above this here, an old high near 232 as well as a series of repeated highs near 231. So we kind of have this resistance paired gradually lower highs here. So our uptrend is stil place. So we have some tension here between our trend that we've seen during the past few trading weeks here with a repeated resistance ceiling that we have not quite manage break yet. So a gap here was filled. We had lows here around 213 and as well. So here are moving averages are more in a bullish pattern here. Bullish setup here with our fastest ones above our slower ones. The moving as are continuing to diverge farther apart from each other. Look for them to start converging or shifting their slope for signs of potential trend change. Our five day EMA in dark blue is just above 228, which lines with our trend line. So if we were to get a break downward, the 21 day near 224 or so is the next potential foothold. RSI is starting to crack above that downward sloping red trend line here. So that would be more of a bullish type of develoif we were to keep making new relative highs. And if price were to get a push above that resistance ceiling. So here our volume profile shows that we have heavy trading volumes roughly in this area. 218 to 225 or so. That's the standout price zone h for this this stock right now. So it certain interesting sin. If the the king of the market here starts to push back into those new all time highs. Yeah. And right now we're at two 3050. The 52 week range is 23654. So we're pretty close. So Dan, with that technical setup, how would you look to trade Nvidia. Y So this is a little bit longer in duration. Looking at this trade example, I think I wanted to give it a little bit of time here and also move the potential tax consequence if there is one into January ofxt r to kind of look a and manage that. So today's trade example is buying thery call spread the at the money call, spread the 230 and then selling the January 2nd 50 call, but then also selling the Januar 15 put to finance basically the entire cost of thatl spread. So it gives it gives you the opportunity to participate from where it's currently trading up to 250 over the next quarter, but also creates a zone to the downside. If we get down to 215. A think Rick pointed out what 213 or I mean, there's a level down there that I saw as well if we do see a little bit of a weakness andble to take out highs, if we drift back down below. 215 I think t a level on a lo term basis to it's more compelling if we do see that weakness. So again, this creates a zone to the downside to get put into the stock, but also allows you to capture the current price range up to 250 over the next quarter. All right. And we will have that earnings event fromdia coming November 17th. Have to wait a bit for them. But it i coming. And it within that trade. Dan always appreciate you joining us for big three.