My short positions are all doing great, and I’d like to talk about just one of them, Advanced Micro Devices (AMD) for a moment. Here is the chart of AMD, which has several bearish things going for it:
- Miles away from lifetime highs;
- Steady series of lower highs;
- Serious (almost embarrassing) under-performance versus the sector
This will go from Good to Great if it can bust below that trendline.
In sharp contrast is Nvidia (NVDA), the big swinging dick of the entire global equity market, and maybe lifetime highs again on a regular basis.
What does the ratio chart AMD/NVDA look like? I’m glad you asked!
Let me put it this way: my January 2025 $175 puts are already up 28% in this laughably over-supported bull market. Bring in some market weakness or, God forbid, let NVDA slip – – and it’ll be triple-digits time on those profits.
