🧪 Nvidia Falls $200bn

Good Morning!

The Dow hit a record high yesterday, Nvidia stumbled despite strong earnings, and Warren Buffett’s Berkshire Hathaway just reached a $1 trillion market cap.

Plus, we’ve got the latest on OpenAI’s funding round and why Dollar General's stock nosedived. And, of course, an update on our $BTC trade.

Let’s get into it 👇

🌡 Market Temperature Check

The Dow closed at a record high on Thursday amid mixed trading, boosted by stronger-than-expected U.S. economic data. The Commerce Department reported faster-than-estimated economic growth, driven by strong consumer spending, easing recession fears. Meanwhile, Nvidia shares slipped as its forecast failed to excite investors, despite being in line with expectations.

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🤖 Nvidia’s business is growing faster than expected. Investors were still disappointed
Nvidia’s stock took a 6% dip yesterday, even after delivering impressive earnings with a 122% revenue jump. But, it seems investors had even higher expectations, especially after the company’s recent streak of explosive growth.

💰️ Buffett’s Berkshire Hathaway hits $1 trillion market value
Warren Buffett’s Berkshire Hathaway hit a $1 trillion market cap on Wednesday, making it the first U.S. non-tech company to reach that milestone. The Omaha-based conglomerate’s shares have surged over 28% in 2024, outpacing the S&P 500’s 18% gain.

🍎 Apple and Nvidia may invest in OpenAI
OpenAI is reportedly eyeing a major funding round, with Apple and Nvidia potentially joining in. The round, led by Thrive Capital, could value OpenAI at over $100 billion, with Apple planning to integrate ChatGPT into iOS.

💵 Why Dollar General Stock Plummeted to 6-Year Lows
Dollar General’s stock plunged over 30% on Thursday after disappointing Q2 2024 results, dropping the share price below $87—a level not seen since 2017.

📈 My Day Trading Strategy

If you missed it on my Instagram, I recently posted a quick video where I break down my day trading strategy.

Every morning at 10am, the market does something predictable, and once you learn to spot it, there’s some serious money to be made.

Here’s the gist of it. Each morning, a 4-hour candle opens. In a bullish market, you’ll notice an open, a low, and then a high; in a bearish market, it’s an open, a high, and then a low.

It’s all about liquidity. If you want the full rundown to be able to spot this pattern, check out the video below!

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Schedule a call with a Vinovest advisor to learn more.

📈 What I’m Trading

$BTC Long (Risky) – Update

If you read Wednesday’s edition, you saw Sherlock’s BTC long, well here is an update.

Sherlock’s initial call on Bitcoin saw some action, but the market isn’t done testing our resolve just yet. After attempting a breakout from support yesterday, Bitcoin quickly retraced and now sits back on the edge, keeping everyone on their toes.

Adding fuel to the fire, BlackRock’s IBIT—the world’s largest Bitcoin fund by assets under management—just recorded $13 million in outflows, a rare occurrence that has traders on edge.

Here’s the updated game plan from Sherlock:

• First Entry: $58,625 (if price comes back)

• Second Entry: $56,800

• Stoploss: 1D Close Below $56,000

• Targets: $62,000 - $65,000 - $67,500 - $70,000 - $73,000 - $77,000

This is essentially a second setup for $BTC, sticking to the same high-risk, high-reward strategy.

The attempted breakout was short-lived, and now we’re back to the critical support level. The market is clearly unsettled, especially with the news of significant outflows from BlackRock’s IBIT fund.

Our Take: Staying on the Edge

Sherlock’s update is all about staying ready. The market is still testing support, and while the risks remain high, so does the potential for reward. The TA still shows strong support around $56,000-$58,000, and with Sherlock’s revised entry points, there’s a clear plan to capitalize if the market bounces back.

If you’re tracking this trade, it’s critical to stay updated with every move. Sherlock’s adjusting his position as the situation evolves, if you’d like to stay in the loop, check out our community.

‘til next time,

TradingLab