Normally, the day after NVDA reports is almost completely obsessed with, well, Nvidia. This time, however, the NVDA earnings got subsumed by the huge news about the international trade court, which has absolutely rolled the markets.
Now that the dust has settled, I wanted to mention that I actually went short NVDA yesterday, to good effect thus far. The stock has been hammering out a series of lower highs, and the peak yesterday matched almost to the penny the prior lower high. I figure if THAT much good news (blowout earnings and the trade court thing) could only push the stock to that level, not even in the same ZIP code as lifetime highs, it was time to get short.
I simultaneously entered into short positions in other semis, since the NVDA earnings risk was behind us. I sold short AMD, MCHP, and MU, all of which are doing great. Those charts, and a couple of related ones, are shown below.
The fact is that the semi sector peaked almost eleven MONTHS ago, and even with tidal waves of bullish news and media fascination with AI, all the sector has been able to achieve is occasional thrusts higher, with less and less to show for it with each and every thrust.
