I'm talking about two Street darlings, Nvidia (NVDA) vs Tesla (TSLA). The question is which one I like. Well, it all depends as the Street cliché goes. Both are dearly loved by a vast amount of people for their own strong reasons but to me there is no comparison between the two if we are talking about the fundamentals. You see, Nvidia is already a very profitable company and is leading in many ways in the hot areas like AI, autonomous robots, drones and cars, and yes, cryptos. For Tesla, it is still yet to make a penny and is mostly living on its CEO's visions, although many very bold visions indeed that attract so many people who would like to believe and put big money in, regardless even the chance for Tesla to make money seems extremely remote based on the current status. So you can easily see where my money will be tied to when talking about long term, and yes, I'm long with NVDA.
Then I have a very different view if you ask me for the near term, the next few weeks. It's purely technical. Yes, NVDA is breaking out to its all time high today, a very impressive move indeed. While its daily momentum is supper strong now, its is stretched to the overbought territory. Its weekly momentum, which is also approaching the overbought range, is not showing obvious positive divergence yet. Maybe the technicals are cautioning us for the possible weakness in the weeks ahead for NVDA. On the other hand, it is a bit more positive for Tesla technically. Its daily momentum is in a clear uptrend and is far from overbought, meaning it has more room for further going up. Its weekly momentum is more positive than NVDA per my eyes and again has more room for the upside.
With this kind of different technical setup, definitely I'm not interested to chase up NVDA now but rather I'd be betting for a short term strong up move for TSLA. That's is exactly what I'm doing with my money.
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