The Love Affair With Nvidia Is Over as Investors Come to Their Senses

The Love Affair With Nvidia Is Over as Investors Come to Their Senses

This column is my opinion and expresses my views. Those views can change at a moments notice when the market changes. I am not right all the time and I do not expect to be. I disclose all my positions clearly listed on the page, and I do not trade my account on the stocks spoken of in this column unless fully disclosed. If that does not work for you stop reading and close the page. Do not bother me or harass me.

Otherwise, enjoy the column!

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Michael Kramer and the Clients of Mott Capital own Netflix

Nvidia (NVDA)

If you own Nvidia and you aren’t nervous; you should be. The stock was up about 10% following results. But after a day of trading, the stock finishes the day up only 1.8% on a day when the S&P 500 was over 1%. The stock was up to as high as $169 in the after-hours last night and gave back nearly $12. The market has spoken, and it does not seem very impressed with Nvidia’s results.

Anyway, wanted to get that one in at the top. As I said yesterday, the results were horrible, and the 2020 guidance was nothing more than an attempt to calm the market. In my opinion, until proven otherwise, you must question the company’s guidance.

S&P 500 (SPY)

The S&P 500 continues to march closer to 2,800, closing today at 2,775. It is now less than 1% from 2,800. Next week will be a tremendous week for stocks. A showdown at resistance is coming.

I’m waiting on a couple of data point before I make next call for where stocks go. However, I am becoming increasingly more confident that 2,800 will not be the last stop for this rally and we are likely heading to record highs. Yep, new highs and an S&P 500 over 3,000. The Race To 2,800 And Beyond

S&P 500, spx

Russell (IWM)

The Russell had a huge day rising over 1,562 also setting up a showdown at 1,593 next week.

russell 2000 Amazon (AMZN)

Amazon fell nearly 1% to $1607, and I think this stock will continue to struggle and it is about to get even worse. $1,518 is still the target, and it seems that it may be coming sooner than we thought!


Netflix (NFLX)

Netflix continues to struggle, and I am getting worried about the stock. There seems to be a big seller sitting around the $360 level. There has been a lot of volume trading at this current level. So we will have to see, but the longer it fails to break out the more likely a break out doesn’t happen.


That is it for today; it is Friday ahead of a three-day weekend!

Take it easy.


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Mott Capital Management, LLC is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Upon request, the advisor will provide a list of all recommendations made during the past twelve months. Past performance is not indicative of future results.


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