Wednesday, October 09, 2019 12:21:50 PM
Warning: This Stock is Pointing Lower Again
by Serge Berger, InvestorPlace • October 9, 2019
The stock market came under pressure again on Tuesday. Investors didn’t respond well to the latest news out of the Fed and concerns around a U.S.-China trade deal flared up again. Among the victims on Tuesday were the semiconductor and related stocks such as Nvidia (NASDAQ:NVDA). NVDA stock rejected a technically important area on its chart and now points lower again.
Before looking at NVDA stock more closely, allow me to remind ye faithful that when it comes to financial markets, the dog wags the tail.
This is to say that the bigger picture economic news or broader stock market moves will dictate what most risk assets will do.
Barring major idiosyncratic news around a single name stock, any given stock will gyrate with the broader market movements, particularly during times of high headline risk (such as the current market is subject to).
This is particularly important this week as U.S.-China trade talks resume and major headline risk will likely affect most risk assets.
In other words, while the below trade idea on NVDA is valid, keep in mind that the bigger picture headlines will likely move this stock in one direction or another in the near-term.
As I have been pointing out in this column all year, the major equity averages for the most part have struggled to make meaningful new highs since the blowoff top in global equities from late January 2018. This also holds true for plenty of semiconductor names, including NVDA stock.
NVDA Stock Chart
[-chart]investorplace.com/wp-content/uploads/2019/10/nvda-weekly-1024x601.png[/chart]
by Serge Berger, InvestorPlace • October 9, 2019
The stock market came under pressure again on Tuesday. Investors didn’t respond well to the latest news out of the Fed and concerns around a U.S.-China trade deal flared up again. Among the victims on Tuesday were the semiconductor and related stocks such as Nvidia (NASDAQ:NVDA). NVDA stock rejected a technically important area on its chart and now points lower again.
Before looking at NVDA stock more closely, allow me to remind ye faithful that when it comes to financial markets, the dog wags the tail.
This is to say that the bigger picture economic news or broader stock market moves will dictate what most risk assets will do.
Barring major idiosyncratic news around a single name stock, any given stock will gyrate with the broader market movements, particularly during times of high headline risk (such as the current market is subject to).
This is particularly important this week as U.S.-China trade talks resume and major headline risk will likely affect most risk assets.
In other words, while the below trade idea on NVDA is valid, keep in mind that the bigger picture headlines will likely move this stock in one direction or another in the near-term.
As I have been pointing out in this column all year, the major equity averages for the most part have struggled to make meaningful new highs since the blowoff top in global equities from late January 2018. This also holds true for plenty of semiconductor names, including NVDA stock.
NVDA Stock Chart
[-chart]investorplace.com/wp-content/uploads/2019/10/nvda-weekly-1024x601.png[/chart]
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