Yesterday evening’s Nvidia earnings slapped on trillions of dollars of recovered market value to stocks around the world. The chart of the /ES below shows the beneficial effect of the NVDA news (green arrow). This was augmented, but only slightly, by the jobs report which showed the unemployment rate had increased to 4.4% (more realistic figure: 24%) and that monthly earnings had increased less than expected (0.2% instead of 0.3%). Thus, as shown by the red arrow, the /ES got up to about a triple-digit overnight increase, with the /NQ up almost 500 points. Zowie!
Equity bear though I am, and with 35 short positions already under my belt, I am paradoxically quite eager for the day to get started. I might have to tidy up or close a position or two, it’s true, but I’m terribly excited to find new opportunities to short at these freshly elevated prices.
The world is convinced that the NVDA report has offered a new lease on life for the endlessly examined AI bubble, and one glance at the headlines will illustrate that fear has, once again, absolutely left the building:
As your humble chartist, all I can say is that, even with the blockbuster Nvidia report, the only thing that has transpired is that the market is serving up yet another shorting opportunity on a gleaming silver platter.
To which I can only offer this reaction.
