Buying the Dip Has Been the Play

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Our View

The ES reached its all-time contract high of 5721.25 on July 12th and then fell 601.25 points over 14 sessions to 5120.00. From the 5120 low, it has rallied 511.75 points to yesterday's 5631.75 high and is less than 100 points off its all-time contract high.

The NQ reached its high on July 11th at 20,983.75, then sold off to 17,351.00 on August 4th, a loss of 3,632.75 points. From the NQ’s low to its recent high of 19,871, the future has rallied 2,520 points and is 1,125 points off its all-time contract high.

I know HandelStats thinks the ES and NQ could pullback or selloff at the end of the week, but I think the ES will keep going up right into the end of the month or at least until NVDA reports earnings on August 28th. 

According to Goldman Sachs analyst Toshiya Hari, who reiterated his 'conviction buy' rating and $135 price target on Nvidia heading into next week's update, "The demand story for Nvidia remains compelling. While the reported delay in Nvidia's Blackwell (i.e., next-generation GPU architecture) could lead to some near-term volatility in fundamentals, we expect management commentary, coupled with supply chain data points over the coming weeks, to lead to higher conviction regarding Nvidia's earnings power in 2025. Importantly, we believe customer demand across large cloud service providers and enterprises is strong, and Nvidia's robust competitive position in AI/accelerated computing remains intact," Hari added.