Nvidia has long been a target of mine as it looks to possess many of the characteristics of a true market leader. It was high on my watchlist throughout this year, and I was monitoring it closely for a buy this summer, but it corrected and started building out a base. Now, it his holding up rather well right at its' 50-day moving average.
As AI continues to be a major theme, it makes sense that a stock like Nvidia would attract potential buyers. After all, it's hard to find a large-cap stock that can deliver what NVDA has: accelerating earnings and sales with its' last quarter producing both triple-digit earnings and triple-digit sales. Return on equity sits at 34%, and IBD has given this stock a 99 composite rating. In my opinion, legendary trader William O'Neil would be all over this stock as it looks like a stock right out of one of his model books.
While NVDA is the clear leader, SMCI is also setting up nicely near its' 50-day moving average, and AMD bounced off its' 200-day moving average last week. This all bodes well for the semiconductor space overall.
While there's lots to be worried about if you turn on the news, general market conditions seem to be improving as the S&P 500 showed strong support last week near the 200-day moving average. Don't let the news phase you or let you become biased. It is the charts that will always have the final say. As Jesse Livermore stated, "But not even a world war can keep the stock market from being a bull market when conditions are bullish or a bear market when conditions are bearish. And all a man needs to know to make money is to appraise conditions."
Risk right. Sit tight.
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