Loading ...INSANE – Parabolic Blowoff Top
Today’s incredible move in NVDA and as a result the NASD Comp & NASD 100, should mark the top in all three. Despite their great earnings, NVDA is now grossly overvalued and can’t justify the market cap even if sales continue to rise for another year or so. Great company, great products, extremely overvalued stock, that technically is close to it’s limits. Trying to short it will be tough. Patience dictates one wait for the foam to settle and short on a subsequent bounce off the first meaningful pullback. One could try puts today but the premiums are probably prohibitive. This top in the stock market’s new darling(replacing AAPL) should also mark the top for both NASD averages as well.(This is not investment advice just my opinion.)
Now thats a GAP !
weekly
https://schrts.co/aMiDGcNQ
Just stay clear for a while. When the desire to short this absurd valuation rises in you I recommend lying down until the urge subsides.
This is a culmination of narrowing strength and FOMO. It can last a while. These earnings gap ups don’t usually fizzle out for a while. As in weeks. Wait till all the shorts are throughly skewered then one can move it.
Agree, that is why I said the following:”Trying to short it will be tough. Patience dictates one wait for the foam to settle and short on a subsequent bounce off the first meaningful pullback.” It will take days to weeks before you get BOTH a meaningful pullback and the subsequent bounce.
What about those of us (only me???) who never short an individual stock? LOL
Sirs CM and Plunger,
This move of NVDA reminds me of the heydays of CSCO. No stock has ever (forward) split more in history than CSCO (correct me if I’m wrong).
“The shares hit $82 over 23 years ago. They’re under $50 today. Welcome to a company seen as having infinite growth transitioned to a company seen as a legacy player.”
The above taken from the link: https://www.thelayoff.com/t/1mLPcmbM
A lot of anonymous truths are posted on this forum (GoldTent TA is not my first forum of truth-posters, most of whom were/are anonymous to me)
One thing is for sure: history will either repeat or rhyme.
Why do I post about CSCO? Worked there twice, first as a contractor, then as a full time employee, for a total of 10 years.
GL
So the question is did you ever receive any CSCO stock options as an employee and if so did you cash out when they were profitable or ride them down the drain with the stock?
Sir CM,
Whether I got ESPP (Employee Stock Purchase Plan) or RSUs (Restricted Stock Units, awarded as a “strings-attached” bonus), I always sold them the day they were in my brokerage account.
So much for “believing” in the place where you work.
Sometimes the stock price went 10-20% higher after my sale, but always came down below my sell price in a few months.
Never regretted any sale.
GL