This graphics chip maker is seeing some interesting option activity, with buyers loading up on calls in the past month. The shares have responded accordingly, but remain a buy.
NVIDIA (NVDA)
from Nate’s Notes
NVIDIA (NVDA) is currently demonstrating some of the best relative strength among all stocks in the newsletter, and it is hard to find a better indicator of likely short-term price action than current relative strength.
As it has done a number of times over the past several years, NVIDIA’s stock appears to once again be zigging when the rest of its peers are sagging.
The stock has historically marched to its own drummer, which makes it more difficult to assign much weight to price action when trying to figure out where the sector as a whole may be heading. It is hard to consider the fact that it is hitting new multi-year highs during what has otherwise been a difficult period for the sector as anything but “bullish.”
Though you always want to be careful about chasing stocks, the longer this holds above $24, the more confident you should feel about making new purchases. NVDA is now a strong buy under $24 and a buy under $28.
Nate Pile, Nate’s Notes, www.NotWallStreet.com, 707-433-7903, October 9, 2015