Here's how I'd approach the stock now.
NVDA's current quarter revenue guidance was stunning.
We'll see on Thursday how much correlation there is between the great report from Nvidia and everything else.
Peloton Interactive's charts appear to be running in the wrong direction.
A poor fundamental picture looks worse next to the bad charts of FL.
Monetary tightening that began nearly a year and a half ago is starting to be more fully felt across the economy.
FL has burned cash on a trailing twelve month basis for six consecutive quarters, and the guidance is terrible.
We timidly recommend adding risk starting Wednesday ahead of Nvidia earnings and Friday's Jackson Hole speech from Fed Chair Powell, as we see a favorable shift in risk/reward into next week. Timid because it is August.
Trading activity slowed a bit up and down Wall Street as equities closed out Tuesday mixed to lower for the day ahead of NVDA earnings.
The bullish hope is that NVDA will confirm the economic future of Artificial Intelligence.