Nvidia Insider Selling

Nvidia (NVDA) has been the Street darling for 3 years for a good reason: it is by far the leading chip company for automatic car and artificial intelligence, the two hottest areas for now and future.  As such, its stock has been almost in a vertical uptrend since 2014, jumping 10 times from $20 to a recent new high of $220. While there are certainly good reasons to expect NVDA could continue to march high in the years ahead, its near term prospect could be questionable. Technically its weekly trend starts to weaken and if indeed it wants to get more rest, it may go down towards $150, its weekly 50 DMA, a very reasonable support level. I just happened to see a post from someone taking about NVDA CEO’s insider selling, which seems consistent with its technical trend. So I thought to share with you here:

 

“In a case of do as I do, not as I say, we are presented with CEO Huang. Huang has rarely sold above $10 million worth of his company's stock. In fact, the only other time that he did so, was in August and November 2007. In August 2007 he sold $30 million worth of stock and in November 2007 he sold another $15 million. With the benefit of hindsight, his timing was impeccable as the stock would not return to those heights for approximately another 8 years. Now, more recently in September 2017 CEO Huang has started once again selling large amounts of Nvidia stock, worth $18 million. Wise investors, should at least, pause and consider, whether, in time, Huang would prove to be prescient this time around too?”

 

Don’t get me wrong, I’m not bearish for NVDA at all for its fundamentals and long term outlook. I’m also holding long positions. But I’d not immediately add new positions at the moment until its technical trend turns to positive again.