This has to be a low risk short entry, even if it fails, the reward to risk justifies taking a position or at the very least taking profits from long exposure to NASDAQ:NVDA as it has reached the quarterly timeframe target, and is at risk of erasing the huge gains it had since the AI boom started recently.
I'm personally not going to short it as the valuation and growth story is appealing if it were to regain strength but I also carry no long exposure to it anymore.
I suggest caution, if the strongest AI winner out there is reversing from a long term target, then what's left for the other overvalued mortals who were merely dragged upwards by the recent speculative frenzy?
The short did work, thank you for your analysis and ideas. where do we go next? Looks like Head and Shoulder breakdown
IvanLabrie
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@guru3684 we will know more next week, it there's proportional follow through in the next three weeks it can be a very severe decline.
Overall, I'm long value, energy, etc. but if you don't trade long/short or at least use index futures to hedge longs, this is a very dangerous time to be reckless with long exposure in equities.