Markets Closed Monday, Volatile Trading Expected Next Week with Key Economic Events and Nvidia Earnings Ahead
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US markets are closed Monday and reopen Tuesday. Key economic events mid-week include Fed minutes, Treasury auctions, jobless claims, and Nvidia earnings.
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Post-options expiration week often brings unstable markets and big intraday swings due to reduced gamma levels. S&P 500 is near zero gamma, expanding volatility risk.
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S&P 500 and Nasdaq appear to have formed diamond reversal tops. If pattern confirms, entire rally since October could be at risk. Key support levels to watch.
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Nvidia stock has surged 84% since Oct 31 to highly overbought levels on weekly and monthly timeframes. History shows sharp sell-offs follow these types of extreme moves.
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Nvidia's product is prone to supply/demand imbalances. Despite shifting growth narratives, booms and busts have repeatedly occurred over 20-year history. Approach with caution.