It’s tough to get excited about the weakness in /RTY this morning, since just yesterday at this time (see red circle) the /RTY was getting demolished, and then For Some Mysterious Reason (cough, D.C., cough cough) the market got gobbled up, pushing the SPY and QQQ to highs never seen before. It hardly matters anyway, since today will probably be a nose-picking holding pattern as the all-important CPI and Fed events tomorrow morning.
As an aside, I will note that the split-adjusted NVDA illustrates a couple of things: first, that the price action is still on track for an endless bull run, since fundamentals stopped mattering about $2 trillion in market cap ago. Second, however, I’d point out that with all the feverish excitement about the split, the volume on the big day was absolutely puny. The price is more important, however, so let’s see if tomorrow’s big double-event spoils the fun.
I will say, though, on the subject of semiconductors, that AMD is the only one I like on the short side. I got into September 20th puts yesterday morning, and as long as that gap holds (blue line), we’re good to go.
