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⋅ There has been such demand destruction of bitcoin over the past several months it's clear to see how it effects equities like Nvidia.
To explain. High bitcoin prices drive demand for miners. more miners results in higher sales for NVDA.
The reverse is also true. Lower bitcoin prices decreases demand for miners, thus lowering sales for NVDA.
My idea for NVDA earnings is short.
A Head & Shoulders pattern with a clear neckline opens up a good opportunity for a short position over NVDA earnings.
NVDA is an international company. Rising USD means lower margins.
Overall market is starting to signal a rollover from the recent short squeeze rally which also strengthens a put position on Tech.
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⋅ Already hit 50% profit on puts and scaled out leaving a couple runners for earnings.
Strong sell signal on SPY intraday helped
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⋅ Me staring at the intraday chart today.
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⋅ I love H&S patterns