TSLA - Nvidia To Extends Its AI Dominance – Momo Turns Nvidia Into A Casino - Sell The News Reaction | Benzinga
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Extending AI Dominance
Please click here for an enlarged version of the chart of NVIDIA Corp (NASDAQ: NVDA).
Note the following:
- This article is about the big picture, not an individual stock. The chart of NVDA is being used to illustrate the point. As a full disclosure, NVDA stock is in The Arora Report ZYX Buy Core Model Portfolio.
- The chart shows the Arora signal to hedge NVDA stock near the high prior to the big drop shown by the outside day on the chart.
- The signal to hedge NVDA stock was given ahead of the much anticipated Nvidia GTC. The momo crowd aggressively bought ahead of GTC. The chart shows that the Arora call to hedge, so far, has been as perfect of a signal as it gets in real life. So far, there has been a sell the news reaction to the Nvidia conference.
- We had previously shared with you that Nvidia has become the favorite of the momo crowd, replacing Tesla Inc (NASDAQ: TSLA) for aggressively buying call options. Yesterday, the momo crowd turned NVDA stock into a casino. The momo crowd was buying stock options betting that NVDA stock would double by the end of the week – now think about it, doubling in NVDA would mean adding $2T of market value in one week. Even a simple analysis would have shown that NVDA stock doubling in a week was impossible, but do not tell that to the momo crowd. The momo crowd was wagering its hard earned money on the impossible that NVDA stock would double this week. The YOLO (you only live once) element has turned NVDA stock into a casino.
- The chart shows that NVDA stock has broken the trendline in the early trade. However, it is still early. NVDA stock can recover from here. If NVDA stock does not recover and decisively breaks the trendline, expect more selling to come in.
- ‘Incredible’ is the only word that can describe Nvidia CEO Jensen Huang’s keynote speech. Nvidia is clearly on a path to extend its AI dominance.
- It is still early in the AI race.
- Nvidia announced that Blackwell will be the ...