Pay Attention: A Major Risk Event Is Ahead – Nvidia Earnings

To gain an edge, this is what you need to know today.

Nvidia Earnings Ahead

Please click here for an enlarged version of the chart of Nvidia stock (NASDAQ: NVDA). 

Note the following:

The Morning Capsule is about the big picture, not an individual stock. The chart of NVDA stock is being used to illustrate the point.
NVDA is the best performing large stock as NVDA is at the center of the AI revolution.
The chart shows a breakout on January 8, 2024.
The chart shows the very steep trendline since the breakout.
The chart shows the buying frenzy in NVDA stock.
The chart shows that since the breakout, NVDA stock has moved up 45.2% in a very short time.
The move up in the stock market in 2024 is the result of two events.

AI frenzy led by NVDA stock
Momo gurus’ narrative of six rate cuts in 2024, starting in March. The Arora Report repeatedly cautioned you against believing in the momo gurus’ narrative of interest rate cuts. Now it is clear that momo gurus have been wrong on their interest rate cut projections.

The Arora Report call on AI has been very positive. Our call originally was that a fortune was to be made over seven years. That call was made over a year ago.  So far, that call has been spot on.
When one stock, such as NVDA, becomes responsible for a large part of the move of the entire stock market and for the extreme positive sentiment, it is important to pay attention to the earnings of the stock.
NVDA reports earnings on February 21. The consensus for NVDA earnings is $4.56. The consensus for revenue is $20.32B.
Less informed investors do not understand that stocks do not move based on published consensus earnings and revenue estimates. Stocks move based on whisper numbers. Whisper numbers are the numbers that analysts share privately, only with their best clients.  The whisper numbers for NVDA are at $5 for earnings and $22B for revenue.  
Sentiment in NVDA is at extreme positive. Here is the most often asked question, “I don’t own NVDA. Should I buy it now?” Typically, investors answer the question themselves. They cannot stand that they do not own NVDA, so they jump in with both feet to buy it now. This is the same pattern that the same investors showed when TSLA was trading at a much higher price.
NVDA earnings will determine the near term course…