Yesterday was a typical strong dollar (Trump-style) trade. It shouldn't be particularly surprising to see these asset performances - the dollar surged, interest rates rose sharply, stocks (except leading ones) fell, gold dropped - the logic flows smoothly. But this was just a temporary intraday market movement. The mid-to-long term logic remains unchanged. Short-term NVDA looks bearish but the risk-reward ratio is really not attractive enough - I wouldn't place such an order.
$NVIDIA(NVDA.US) is terrifying, sucking up all the liquidity in the U.S., with data hype and policy hype, even more exaggerated than the metaverse blockchain back in the day. But the problem is, AI implementation takes time and requires global follow-up... Clearly, China and Europe won't go all-in to follow... It's not like the idiot Soviet Union blindly following the space race by launching rockets...
The price could reach $150, $180, and I wouldn't be surprised if it hits $800, given it's absorbing all the bets in the U.S. But I chose to cash out and cleared both long and short positions. Look at its gains, then at the losses in gold, treasury bonds, and indices—maybe I just don't have the gambler's mentality, don't want to bet.
The copyright of this article belongs to the original author/organization.
The views expressed herein are solely those of the author and do not reflect the stance of the platform. The content is intended for investment reference purposes only and shall not be considered as investment advice. Please contact us if you have any questions or suggestions regarding the content services provided by the platform.
