• Chart of the Day: Nvidia (NVDA)

    by  • September 5, 2013 2:20 pm • Charts to Watch, Quick Hits, Tony Venosa's Chart of the Day • 0 Comments

    Today’s chart is of Nvidia (NVDA), a visual computing company, which develops graphics chips for use in personal computers (PC), mobile devices, and supercomputers.

    Ticker:  Nvidia (NVDA)

    What I Am Looking At:

    • Outperforming the semiconductor industry as well as the broader market, up nearly 22 percent year-to-date
    • Short-term performance is relatively strong as NVDA is up since the S&P 500 Index topped on August 2nd
    • Semiconductor Index has been also outperforming the S&P 500 Index since the Aug. 2nd top
    • Shares appear to be moving up from a resistance-turned-support zone around $14.75
    • Recovered nicely from the big dip on August 8-12
    • Despite the positive performance, skepticism among analysts remains as 19 out of 25 rate the shares a “hold” or worse
    • Short interest remains near high levels, nearly 7 percent of the float is sold short
    • Short interest is falling after peaking in June, an indication that positions are being covered
    • Peak put open interest for the September/ October series resides at the 14-strike, which could be supportive
    • One caveat is huge peak call open interest for the September series at the 15- and 16-strike may create roadblocks for further advancement


     Conclusion:  Longer-term, looking for shares to move to round-number $20, which is half the all-time high.

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    Tony Venosa, CMT is a Senior Options Strategist and works on the trading desk at Schaeffer’s Investment Research. He joined Schaeffer’s in 2010. He has worked in the finance industry for over 15 years. He began his career as a trading assistant in Chicago on the floor of the Chicago Mercantile Exchange. He later moved upstairs and worked as a commodities broker on both the retail and hedging side. He left the brokerage industry to begin his trading career as a proprietary equities trader at a Chicago firm. In 2000, Tony moved backed to his hometown and continued trading his personal account. He later went on to earn his Chartered Market Technician designation. He earned a B.S. in Finance from Miami University. Tony’s main focus is short-term directional option trading.


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