The ‘Downside’ Reversal
The AI, mania’s looking a lot like the hysterical gold bugs from years ago.
Just to remind everyone what it was like.
Gold links below are nearly two years old and $3,000/oz. gold is nowhere in sight:
Von Greyerz: Gold-O-Mania Is Coming!
The AI Bubble … Past The Top?
Moving on, this post said as we reverse and head lower, expect the hysteria to increase.
You’ll have to be the judge on whether or not the hype has moved to the next level:
Jim Cramer Thinks
‘Pullback Will Be Short-Lived’
Nvidia jumps 6%
Chipmakers Rally
Tepper’s Appaloosa places big bets
UAE said to buy ‘thousands‘ of Nvidia GPUs
NVDA, Historical Chart
The weekly chart of NVDA from 1/15/99, to present, puts the situation into perspective.
Recall, from a previous post, Prechter indicates, we haven’t been at these extremes in over 300-years.
Positioning
It was a rough day to be short the Semiconductor sector via inverse fund SOXS (not advice, not a recommendation).
However, the position remains intact with Hard Stop unchanged @ 9.42.
In the after-hours (as of 7:03 p.m., EST), inverse fund SOXS continues to edge lower; currently trading @ SOXS 9.78.
The NVDA earnings report is moving ever closer.
Stay Tuned
Charts by StockCharts
Note: Posts on this site are for education purposes only. They provide one firm’s insight on the markets. Not investment advice. See additional disclaimer here.
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