In the spring of 1987, when I was a wet-behind-the-ears intern at Apple, I distinctly remember my boss complaining to a colleague. Apple had just announced their earnings, and both sales and profits were way above expectations. The stock, to their astonishment, went down instead of up. “What else do they want from us?” he asked rhetorically. Apple had been an absolute darling of Wall Street for the past few years, moving up hundreds of percent, and to them it just didn’t seem……………fair.
So, too, with Nvidia, which just announced their quarterly results and whose data simply blew everyone’s socks off. Revenue beat. Profits beat. Forward-looking projections were increased. It was just sunshine and unicorn farts as far as anyone could see or smell.
It was moments after this result that I banged out a very quick post and was not at all surprised to see NVDA exploding higher, SMH ripping, and the QQQs thrusting ever onward. This is exactly the kind of reaction one would expect from oh-my-God levels of fundamentals.
Well, fast forward a couple of hours later into the evening.
The thrill is gone. The bulls are trying to build a roaring fire tomorrow out of tinder and wood which are absolutely saturated and dripping. You can, of course, hear the agonizing screams of those who were long NVDA short-dated calls and were picking out their Lamborghini colors who are now staring at their screens wondering what in the holy hell just happened.
Let me be clear, it’s far, far too early for this last surviving bear on the planet to be declaring any kind of victory, but for this explosive move to completely fall to pieces within such a short timespan puts a spring in my step.
If tomorrow is a big fat down day, I’m WAY TOO LIGHT right now. (Indeed, one of my accounts, God forgive me, is over 50% cash!) Still, I didn’t want to risk getting any vital organs chopped off if, let’s say, the mega-rally we saw earlier actually stuck around.
All I can offer you is three specific syllables with respect to what equities are going to do:
- Watch
- Bit
- Coin
