SPY has rejected 562 for five consecutive trading days and depending on how you draw the breakout line, the VIX is sitting right at support.

NVDA earnings

NVDA is expected to release earnings tomorrow after the bell, and the implied move is almost 12%. SPY and QQQ would surely respond to whatever move NVDA has, up or down. If this were a normal market, I would expect a red day tomorrow based on technicals. That said, technicals haven’t offered much with the massive amount of liquidity going into such a select group of stocks.

My plan

I will probably elect to sit out of the market tomorrow and evaluate where we are on Thursday. If the market rallies on NVDA earnings, I’ll start adding to my short positions again.

Earnings warning

To any newer traders/investors out there: you don’t need to fear missing out of earnings. The moves afterward are generally safer and there’s always another opportunity. Earnings turn trading into gambling and in my experience, gamblers don’t usually come out on top over the long term.