Distribution On The Way Down

It was a wild ride in the after-hours session and the pre-market.

As of this post (8:31 a.m., EST), NVDA is trading down about -4 pts., at 120.70.

The SOXX, is essentially flat, less than one point lower than yesterday’s close.

So, what to do?

Distribution

If Nvidia is following the script of typical market distribution, then it’s a low probability it will make a new daily high above yesterday’s 128.33.

With that said, the action is simple (but not easy).

Since there’s a position short, SOXS-24-13, the stop has been moved as shown in the chart below (not advice, not a recommendation).

Semiconductors, Leveraged Inverse SOXS, Daily

If Nvidia is in distribution, it will be interesting to see if price action follows the script as presented over a century ago, in One Way Pockets.

Stay Tuned

Charts by StockCharts

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The Danger Point®, trade mark: No. 6,505,279