Hey, Ross here:
The biggest market story from yesterday was Nvidia’s blockbuster – but simultaneously below-expectations – earnings.
And even though the U.S. market has just opened…
We can look at the European markets to see how NVDA stock is responding to its latest earnings.
Chart of the Day
This is NVDA trading on the Frankfurt Stock exchange, which opens 7.5 hours ahead of the U.S. markets.
As you can see, it immediately “gapped down” on the open – falling 7% – and that’s after already being down the day prior.
Nvidia had reported a staggering 122% revenue growth and 168% earnings growth – blockbuster results by almost any measure.
Plus, this revenue and earnings growth was also ahead of analysts’ estimates.
And yet, the immediate response of the market was sharply negative.
The lesson here – which I explain in the Insight of the Day below – is one every trader should always keep firmly in mind.
Insight of the Day
Making money on a stock is all about knowing how much future growth has already been priced in.
The stock market is a discounting mechanism.
This means it “discounts” a company’s future growth and translates it into current prices.
Whether a stock goes up or down depends on precisely how much future growth has been priced in – and how much these growth expectations change.
This is very difficult to do – which is why my strategy is to follow the footsteps of those who can do this “work” for us.
The corporate insiders are a prime example, because they know more about their own stock than any analyst.
I mean, Nvidia CEO Jensen Huang was heavily selling NVDA stock leading up to the earnings report.
But if you want to target outsized gains, we want to look at when the insiders are buying.
Like when the insiders started piling on this tiny chemicals manufacturer – and it shot up 38% in 3 days after I recommended it.
And this is just one of many “insider” opportunities up for grabs
That’s why tomorrow morning at 12 p.m. Eastern…
I’m going LIVE for a masterclass that will show you exactly what you need to do to exploit these “insider” opportunities right now.
This masterclass will include:
- How to access the database containing the records of all these insider trades…
- The subtle yet dangerous mistakes traders make when trying to follow these insiders…
- The 3 counterintuitive insider buying signals you must know about…
And much more.
So please click here to save your spot for my live masterclass tomorrow morning…
And I’ll see you at 12 p.m. ET tomorrow.
Customer Story of the Day
“Have only been active with Ross Givens for a couple of weeks now; but have already learned a new, interesting and valued perspective on analyzing stock price action. Very happy I signed up.”
Embrace the surge,
Ross Givens
Editor, Stock Surge Daily
