Too early to say with any decent degree of confidence if this is a blow-off top in NVDA yet. It may certainly prove to be an exhaustion gap (you might want to google that term if not familiar) with the mid-May gap being a continuation gap & if so, we will likely know within the next few trading sessions.

If they run my stop, so be it as I wouldn’t hesitate to re-short NVDA next week, should I see some pretty compelling evidence of a significant topping/reversal pattern in the charts. Better to stop out & get back in at a less favorable price if/when the chart confirm that let my losses run at this point as I’m already well past my original stop allowance, a risk that I knew was a possibility holding into earnings but in recent weeks, I’ve had quite a few official & unofficial trades that had huge earnings-induced gaps that went in my favor & resulted in some large profits. All a numbers game… you just have to spread out your trades, especially if you ride them out through earnings vs. closing them out before as some trader do. More often than not, the post-earnings gaps go in the direction of the charts & unfortunately so far, this one didn’t.

My .02 cents on adding to your fractional position of NVDA: The bearish case/chart pattern has now been largely foiled. NVDA is now trading solidly back above the uptrend line that is generated off the early Feb 2016 lows. While there is still potential negative divergence in place, both the MACD & RSI are both pointed nearly straight up. As such, best to wait for some half-decent technical evidence of a reversal, such as a bearish candlestick, ideally a 2-3 day bearish candlestick reversal pattern & maybe even a break back down below that uptrend line. I’m always glad to add to a position that moves against me if the charts still confirm the trade but when they don’t, I’m more concerned with cutting my losses than adding to the position & possibly digging myself into a deeper hole. JMHO & best of luck whichever way you go.

Randy, what would one look for if this is the case or is it just a punt?

Although as my initial position was 0.4, I might add depending on price action but probably not until next week…..