Wide Swaths of Instability

The last report on Nvidia, link here, nailed-it.

It said that demand had evaporated as seen by Force Index (thrust energy).

Nvidia went on to plunge over 15% before yesterday’s (what must have been a) short squeeze.

Coupled with that, was short trade (SOXS-24-15) in the Semiconductor Index (not advice, not a recommendation).

Yesterday, pre-market action (being short) for SOXX, did not look right; that position was exited just after the open.

Net profit for SOXS-24-15, was about +23.25%.

The whole scenario shows the importance of having the price action itself dictate the trading action.

The squeeze ‘excuse’ was the CEO of Nvidia giving a speech, then going off to sign women’s breasts … I’m not making this up.

All of which brings us to the chart.

We’re keeping the same Fibonacci 8-Day timeframe as the previous update.

Nvidia NVDA, 8-Day

There’s a lot going in with this chart.

First: Price action has become wide and unstable.

Second: The completed 8-Day, bar posted the deepest downside thrust energy ever.

Positioning

Once again, everyone has their own method and style.

With that, understanding where we could be in this market environment, i.e., the throws of reversal, another (tentative) short was opened in the SOXX (not advice, not a recommendation).

The stop on this trade (SOXS-24-16) is very tight … to be set near the (SOXS) lows of the session.

Stay Tuned

Charts by StockCharts

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