Coach Mark here. The most important stock in the world reports after the bell. Yes, that would be Nvidia which has not just become a semiconductor story but a macro story for the market as well.

Very seldom does a singular stock take on this level of importance for the stock market. There is always leadership, there are always generals (although they tend to change over the years) and there is always the potential for rotation. For example, NVDA could have a terrible earnings report but that would not stop potential setups in staples, energy, etc. However, it would impact tech, semiconductors specifically and impact market storylines dramatically.

Palo Alto came out with their earnings and the CEO mentioned in the conference call that customers were facing spending fatigue in cybersecurity. PANW is promptly down 25% on the news. Cisco had similar vibes in their guidance last week. Palo Alto and Cisco are not exactly penny stocks and true leaders in their areas of cybersecurity and networking.

If Nvidia came out with a similar message then get your popcorn ready as the market action the next few days would not be boring! Similarly, if they come out and deliver a rock star report as they have over the last year then also get the proverbial (or literal) popcorn out as all those puts bought on the market recently might experience a little theta decay.

Nvidia is the most important stock in the world right now. It is at the heart of the AI theme which has been a driving force in this market for over a year. There will be trades regardless in the coming days but it doesn’t change the fact that all eyes will be on Nvidia in a few hours.

Have a fantastic Wednesday!

Palo Alto (PANW

Not a good look for Palo Alto here and a reminder of the importance to be cautious heading into a company’s earnings.

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