Trade Alert – Equity Model
This morning, we are selling down Nvidia (NVDA) ahead of earnings tomorrow night. As we saw with Palo Alto Networks (PANW), good earnings, revenue, and in-line guidance weren’t enough to satisfy Wall Street. In other words, if Nvidia crushes earnings and estimates but fails to guide higher for the next quarter, that disappointment could send prices lower.
Therefore, we are rebalancing the position back to model weight after a decent run in NVDA over the last few days. Notably, we have been managing this position in recent months. We added to it in October, rebalanced it to model weight in February, and added back to it in April. As is always the case, while we like the position long-term, we continue to manage portfolio risk by managing position risk.
Equity Model
- Rebalance Nvidia (NVDA) back to its 2% portfolio weight.
Want These Alerts Via TEXT?
To receive trade information via text, click on your user name in the upper right corner of the website. Then click My Account and the title SMS Notification Preferences.
NOTE: You must add your country code in front of your number. The U.S. code is 1.
Please let us know if you have any problems.
Lance Roberts is a Chief Portfolio Strategist/Economist for RIA Advisors. He is also the host of “The Lance Roberts Podcast” and Chief Editor of the “Real Investment Advice” website and author of “Real Investment Daily” blog and “Real Investment Report“. Follow Lance on Facebook, Twitter, Linked-In and YouTube
Customer Relationship Summary (Form CRS)