Randy, thanks. I see the divergence too for long term. It will probably be wise to wait until elections and NOC’s earnings is not far away

As of now, I still prefer a move down to T4 (uptrend line + 94 price support although T3 at 95, is just below today’s lows & could come in together with that uptrend line sometime next week, in which case that will be the final target (if the TL is hit before the 94 price support).

Elections now a month away & I’d imagine fewer companies have deeper political ties than the defense stocks so a trade I’d rather not gamble on right now, in case they bet one party or candidate much harder than the other. As far as NOC, it was just rejected off its previous ATH & major peak back from 2022 so that’s the level to watch to see if it can mount a solid & sustained breakout.

“Solid & sustained” are the key words as NOC would need to burn thru the existing negative divergences & (even better) regain (move back above) the primary bull market uptrend line that it recently broke below on the weekly chart below. The daily chart shows a wedge type pattern that could trigger a sell signal if broken. Best to trail or ratchet up stops IMO. Best of luck on the trade.

Simply that *IF* NVDA is, once again, rejected off this downtrend line and *IF* my longer-term scenario & price targets on NVDA first posted back in late June continue play out ( https://rightsideofthechart.com/spy-qqq-nvda-long-term-price-targets-6-26-24/ ), which so far it has been (T1 being hit with the expected reaction off that first target so far), then the next leg down should take NVDA to my 2nd price target around 76.

Simple really; that long-term swing/trend trade either continues to pan out or it doesn’t and this rally into the downtrend line results in another rejection or it doesn’t.Shorting yet another bounce back to the same downtrend line that has capped every major rally since the stock peaked back in June (with a stop somewhat above) is objective hence, why I pointed it out, even if the odds of another rejection are a lower right now than the previous rallies into the same trend line (for various technical reasons).