First of all, a quick word on NVDA. As you likely also have noticed, NVDA has done quite poorly this week, even when the overall market is in a bullish mood like today. This usually happens when the stock is too much overvalued. I think NVDA has a long way to go to the downside. But for now, actually I feel bullish for it after it has been beaten down so much so fast. So I have already harvested my fruits from shorting it and now I'm betting on the long side for it. It is purely a technical trade and I will take profits quickly when it bounces back next week or two.
For the overall market, it is largely in a depressing mood this week but it is mainly contained in a range. At the moment, it is not wise to bet on either side aggressively. I'm personally more leaning towards the upside for next week, although I have a very bearish view for the longer term. After all, the market is facing a toxic trifecta:
The risk of a 10-year treasury yield breakout … the U.S. dollar continues climbing … oil prices aren’t dropping …
For now, it is just a trading game and I'm swinging frequently in either direction. So far so good!
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