NVDA Earnings and the state of the market

Market Overview
The broad market is showing signs of weakness. With NVDA earnings scheduled for the coming week, IBD recommends maintaining only 40–60% market exposure.

Other Considerations

  • Airbus (GDR Symbol: EADSY):
    Airbus is performing well. Major airlines such as American Airlines (AA) and United Airlines (UAL) are switching from Boeing (BA) to Airbus. The valuation and technicals for Airbus are much more attractive than BA’s. Additionally, Airbus has corrected since reporting earnings, making it a good candidate for a moderate position.

  • Boeing (BA):
    Although BA has risen this year, it experienced a correction last Friday. It may be worthwhile to consider a bear credit spread if the risk-to-reward ratio is favorable.

  • Baidu (BIDU):
    BIDU is a solid company that typically trades within its Linear Regression channel, with the price currently between the top and the middle regression line. It might be worthwhile to explore Iron Condor strategies on BIDU.

  • CF Industries (CLF):
    CLF reports earnings on Monday and is expected to benefit from increased demand for transformers—many of which are over 35 years old, with CLF producing steel specifically for that market. However, CLF is trading above its Linear Regression channel and is too risky to hold in the near term, despite a promising long-term outlook.

Automaker Ticker Symbols

  • Toyota Motor Corporation: TM (listed on the NYSE)
  • Volkswagen AG: VWAGY (traded as an ADR on the OTC market)
  • Stellantis N.V.: STLA (listed on the NYSE)
  • Mercedes-Benz Group AG: MBGAF (traded as an ADR on the OTC market)

All of these stocks took a beating when DJT announced potential tariffs, and they corrected last week. The downtrend is likely to continue, so it may be worthwhile to consider strategies such as Iron Condors or bear call spreads.

Other Stocks

  • Occidental Petroleum (OXY):
    OXY appears to have peaked. Wait for a correction to better assess the trend.

  • Analog Devices (ADI):
    ADI gapped open high last week, which seems unsustainable. Wait for NVDA’s earnings—if NVDA comes down, ADI may follow, at which point selling bear call spreads could be considered.

  • Etsy (ETSY):
    The technicals for ETSY are weak; consider selling bear call spreads.

  • Celanese (CE):
    CE has just bottomed out and may be worth taking a position.

  • Deere & Company (DE):
    DE appears bearish; selling bear call spreads could be a good strategy.

  • Radcom (RDDT):
    RDDT seems overvalued; wait for a correction before taking any action.

  • Alabama (ALAB):
    Consider employing Iron Condor strategies on ALAB.








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