US stock market has been dealing with higher than expected inflation which resulted in treasury yield to jump.
US Fed funds first rate reduction bet has been delayed to minimum June / July time frame which IS also causing jitteriness in US stock market.
NOW latest jitter is all about NVDA upcoming earnings on Wednesday after close....
Some are predicting that no matter what NVDA reports that will trigger a massive downturn in all AI stocks in particular & stock market in general...
It seems that many traders are betting on NVDA pullback & market top.....
Can It happen.....
IF enough money is put behind any strategy then only It can happen, Wall Street is known for huge bets against certain events....like NVDA earnings.....
YES short term direction can be managed by High Frequency traders in cooperation with Market Makers...
YES factor such possibility in your next week strategy...
Too much money is being put behind NVDA earnings....
BUT...these manipulations may NOT work....or @ best may last couple of days...
As far as NVDA upcoming report on Wednesday...It should handily beat any expectations including so called " whisper number "
Guidance should be above " whisper number " also...
All the real number may kill any strategy to manipulate NVDA stock price...
After all is said & done NVDA has a commanding / First mover lead in AI chips....
AMD will take several quarters before getting big in AI chips penetration.....
YES AMD also is a good bet going forward...
Strong bull market do NOT reverse on a dime...
It IS a very slow process and takes several years before It ALL UNWINDS...
AI revolution has just started which means serious money to be made for a long long time....
YES NVDA earning will come & go and AI revolution should continue till we stop talking about IT and becomes part of everyone's life...
Bottom line IS... have your own strategy knowing AI is a real deal for decades....
Good luck with your own strategy & comfort level.
BLOG does NOT give buy or sell.
Saleem
8 comments:
Hi Saleem,
Thanks for a detail of the market breadth and insight on AI. I remember you had NVDA at 100s before split and hold it for a long time but finally gave up before it took off. Who know it is a leader now! Appreciate your time on the nice recap.
Michael
Hi Michael,
Thanks for your feedback which is always appreciated.
We all miss many good moves based on our preferences of the moment....
Stock market gives many chances to redeem our miscalculation ...who knows AI may profit many of us....
Good luck with your picks$$$$
Saleem
Hi Saleem,
Bought SMCI @ 755.00 to get some AI exposure in a company that is capitalizing immensely from the trend
Stocktrader
Hi Saleem,
Trimmed some SOXS @ 4.70 to take profits
Stocktrader
Hi Saleem,
Added some AGCO @ 106.89 on the dip and after good earnings
Stocktrader
Hi Saleem,
Last week: +3.07% (YTD: -1.51%)
Portfolio Leaders: TYGO PSNL MTRN
Portfolio Laggards: AGCO
In a rest week for the markets, the portfolio did well thanks to multiple earnings winners. Some signs of inflation put a damper on growth prospects and helped cool down an otherwise frothy run to start the year. NVDA's earnings are the key highlight for the week and the market is prepared for a big move.
I am started to see signs anecdotally around me of a consumer slowdown as spending on experiences appears to have run its course. I wonder if we finally see some economic sluggishness this year that we have waited multiple years for now. It's in that vein I sold my LYFT (although too early), and also worry about overhanging supply in solar persisting, resulting in the sale of my ENPH also. I'll be looking for new ideas going forward, just like buying SMCI today.
Holdings: SOXS(x2) ULTA AGCO MTRN IONQ SMCI ZENV PSNL TYGO(small), cash 11%
Stocktrader
Hi Stocktrader,
Last Week Down 1.42%
YTD Down 14.14%
Saleem
Hi Stocktrader,
Good luck with hyper charged SMCI ...
Good luck with more AGCO...
Nice gains in SOXS.....
Saleem
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