ULTA update: watching for the FOMO bulls' next moveThis educational screencast is I hope useful in showing how price action can be assessed from various perspectives. It is now pretty late in the game to short ULTA. See ULTA - Journey South ? (from 20th Nov 2018).
I expect FOMO bulls to rush into ULTA, fighting for a few crumbs! LOL. That expectation is based only on human psychology. Make no mistake, it is psychology that works at the tips of the markets.
See also what happened to FOMO Bulls in NVIDIA .
I re-emphasise that I have no need of working out where price is going to go. I'm using a probability model instead of a 'predictive' model. Hence - no targets, only controlled acceptable losses.
Nvidia
NVIDIA SHORT IDEAHi guys ! I post my recent analysis for Nvidia and sharing with you my trading idea. My main view is short for Nvidia with first price target 120$ and then 109$ . My main corcern for Nvidia is the big slowdown at crypto market and as aftermath from big prices decline is lower demand for GPU powerfull systems ( which are sold for a high price). This demand decline signals lower margin profits for Nvidia and it will be seen from investors in 2019. As from technical analysis scope the indicators that I use ADX and Vortex Index signals short for Nvidia. Also my price targets are covered from Bollinger Bands at the monthly chart that i use. Hope you find my analysis usefull fro your trades. This is only an idea, so you must consider all the variables before a trade.
NVIDIA Bears Waking from a Long HibernationThis is a really great longer term short opportunity. From a technical perspective Nvidia needs a big correction. Fundamentally, some of Nvidia's rapid growth can be attributed to the cryptocurrency boom. Among other things, Nvidia manufactures GPUs used for cryptocurrency mining. As you can imagine, demand is weakening.
From a technical perspective, Nvidia is testing a major trendline and all of the indicators show that it will slice through it in the near future (on the lower time frames you can see it barely broke it today). I expect the stock will open higher in the morning and attempt a rally; however, this is a sell the rip market and the bears will maul it.
I am short and will probably stay short on this for 1-2 months and will keep this updated. As always, please perform your own due diligence before acting upon any ideas.
RAISING POSITION TO 2,000,000 SHARES. UNWARRANTED SELL OFF!Folks, Fake News has Micron Bankrupt while other companies that depend on Micron products, Microsoft, Apple, Google, Amazon, Facebook, Twitter, Data Storage Services, in fact, the entire Technological Infrastructure depends on Memory and Storage to work so if Micron sales are forecast to sink by FAKE NEWS, the entire technology industry will crash with it including Cloud Computing services.
This is a case where if you have brains, you know the truth and you BUY!
Smart Money is buying Micron at these FIRE SALE prices while weak hands and manipulators are trying to push the stock down.
As it stands now, Micron is trading under 3x forward earnings, this by itself is OUTRAGEOUS Wall Street Corruption especially watching AMD triple in price on speculation.
We cannot watch the Corruption win, we are moving our position from 1,000,000 shares to 2,000,000 shares
Like we said in an earlier post, Corrupt Wall Street will make us BILLIONAIRES!
If you look at over 90% of our trades on this board, we haven't been wrong. We've made money on every trade we've closed.
A perfect example of Wall Street Corruption is the price of NVIDIA, with an E.P.S of only $6.65 - Trading over $200 a share
Even if Micron sales fall, they will still beat NVIDIA E.P.S.
The sick part of this story, Micron makes NVIDIA chips along with chips for Western Digital, IBM, Intel and many more companies.
We couldn't ask for a better Christmas Gift!
P.S. We also think, if the price of Micron stock stays down at these low levels, the company will we bought out!
With the cash flow Micron has, along with the positive / rock solid E.P.S, the company is a sitting duck for a BUYOUT at current levels.
NVDA - Potential ShortWith today’s close, this is setting up for a juicy short opportunity (assuming no bear trap on low from 10/11/18, or 7/2/18). Currently holding below 50 and 200 MA’s, and broke through support going back to November of 2017. Also, an odd setup, almost derivative of an evening star pattern, but this is at the bottom of a move, and with a different leading candle. If anything, today’s bar confirms a failed swing high from 10/12/18, with dominant force.
Keep an eye on this for a possible short.
If I Could Buy One Stock for the Next 5 Years,It Would Be NVIDIATake a look at its 720% surge since 2016.
Now I know you might be thinking: Stephen, this stock has already had a heck of a run… why buy it now?
I understand the concern.
But when investing in truly disruptive companies , this way of thinking is often a mistake.
From 2009–2013, Amazon (AMZN) stock gained 680%. Most so-called “experts” said the easy money had already been made. In 2013, CNN “reported” that “Amazon is one of the most overvalued stocks.”
Amazon has soared another 700% since 2013.
Nvidia Makes High-Performance Graphic Processing Units
Nvidia developed the first mass-market graphic processing unit (GPU) in 1999. GPUs use what’s called “parallel processing,” which allows the chips to perform millions of calculations at the same time.
That’s different from the way other computer chips work. Most computer chips, like the one powering the laptop or phone you’re reading this on, calculate one by one.
At first, GPUs were mostly used to create realistic graphics in video games. Remember the blocky Nintendo graphics from the early ‘90s?
The ability of GPUs to process huge amounts of data all at once helped create the movie-like video game graphics you see today.
GPUs Are Ideal for “Training” Artificial Intelligence
I’m sure you’ve seen the Hollywood movies about AI going rogue and attacking humans.
In reality, AI isn’t that glamorous. It all comes down to processing massive amounts of data.
Show a computer millions of pictures of a stop sign, for example, and it will learn to recognize stop signs on its own in the real world.
AI is the driving force behind Google’s self-driving car subsidiary Waymo. As I recently discussed in the RiskHedge Report , Waymo’s robot cars are cruising around America’s roads right now.
At the core of Waymo’s self-driving car fleet is a centralized “brain.” It has learned to recognize stop signs, pedestrian crossings, red lights, and all the other obstacles that human drivers navigate.
The Likes of Amazon, Google, and Microsoft Use Nvidia Chips to Train Their AI
The faster a computer can process data, the faster it can “learn” by recognizing patterns in the data.
Nvidia latest chips process 125x faster than traditional computer chips. They can process 125 trillion data points per second… which slashes AI “learn” times from eight days to eight hours.
This is why more than 2,000 companies including Amazon, Google, and Microsoft use Nvidia’s hardware to “train” their AI programs.
Last quarter, the revenue Nvidia earned from selling AI chips and hardware jumped 82%. In the last two years, AI-related sales have accounted for over 70% of the surge in Nvidia’s revenue. AI sales now make up 24% of its total revenue.
Most Self-Driving Car Companies Use Nvidia’s Products
As I mentioned, Nvidia supplies self-driving car companies with chips that “train” cars’ brains. It also sells hardware that processes data from the cars’ many cameras and sensors.
For example, Nvidia’s self-driving supercomputer, named Pegasus, can tackle 320 trillion operations per second. And it does so using one-third the electricity at just one-fifth the cost of its closest competitor.
Over 370 companies working on self-driving cars now use Nvidia’s products. Auto sales make up just 5% of NVDA’s total revenue today, and I see this exploding higher over the next few years as true self-driving cars roll out.
I mentioned earlier that $100 billion has been spent on developing self-driving cars so far. With the likes of Google and Apple pouring billions into driverless projects, I see that jumping to $1 trillion over the next two to three years.
Thanks to its superior technology, I expect Nvidia to capture a large chunk of this.
It’s a “High-Flying” Tech Company, but Extremely Profitable
Nvidia is nothing like many of the barely profitable tech darlings (like Netflix) out there.
While many high-flying tech stocks get by on stories and hype, Nvidia is extremely profitable.
It has a net profit margin of 33%. That is, for every $1 in sales, $0.33 becomes pure profit.
That’s better than Google’s 21% margin… and even Microsoft’s 29%.
Nvidia’s high margins allow it to continually pour cash into Research & Development (R&D). It reinvests close to 20% of its revenue into R&D every year, which is a key reason why it has blown away its rivals.
Nvidia is financially sound, too. It’s sitting on a record $7.95 billion in cash. Which is enough to pay off its total debt four times over.
Why I’m Not Concerned About Nvidia’s Price-to-Earnings (P/E) Ratio of 39.
Can buying a stock at such a high valuation be risky? Sure. But Nvidia deserves its rich valuation.
Nvidia’s earnings are growing at almost six times the rate of the S&P 500. Yet its P/E ratio is not even double the S&P’s.
I think investing in a company like Ford (F), with a P/E of 5, is far riskier than buying NVDA. I can hear the groans coming from the value investors out there.
But the fact is, Nvidia is leading the self-driving revolution… while Ford is going to get crushed by it.
Because it is powering today’s most disruptive trends, I see Nvidia doubling over the next two years.
AMD will continue its uptrend come ER!Yesterdays selloff was only weak hands getting out. Best time to buy the dip imo!
Bad news from Intels open letter for the Suppy shortage update, what it actually said:
"we cant seem to make our 10nm work in time, originally we had planned 10nm for 2015, but now we need more time to at least end of 2019! lol?
in the meantime we get back to 14nm to provide supply in hope of people sticking with us instead of our competitor AMD who can almost deliver 7nm!
pls sell amd and buy our stock. we are so desperate but full in money that we can easily spend $1BILLION into OLD 14nm tech chips that need at least 6+months time to be ready to ship!"
that open letter was a buch of garbage if you ask me. intel was only kicking them self with this one.
this only meand AMD will have further makret share growth in CPU and Servers for another 2 quarter.
weak hand and amatuer investors misinterpret the letter and sell AMD weak handed to pump in Intel that is gooing to suffer a lit next year.
dont be so dumb and make proper DD. AMD is the future, end of story!
Intel will evolve into a slowly sinking ship!
i am long AMD since the nice panic selloff provided a greewat dip buy, with a big amount of money (good 5 digit sum)!
NVDA - DAILY TREND - 26. SEPTEMBER 2018WELCOME TO DACAPITAL TRADING!!
DAILY STOCK MASTER SIGNAL
1 HOUR
Bullish pressure after taking out 259!
4 HOUR
Bearish waving market with bullish wave now, expecting it to rise more!
OVERALL
Following overall bullish trend and price pressure!
LEVELS
BUY NVDA @ 269.70
SL @ 264.70 (500 Pips)
TP OPEN, WE RIDE THE WAVE!
„We will move our SL every day! Be patient!
Enjoy our limited Content and Setups,
leave us a like and Comment!!
A diatribe on NVDAThis is my diatribe on why I am staying away from Nvidia.
There are many facets to this business that go under peoples radars, but the most important from an earnings perspective especially with the state of the general purpose hardware arms race, is the mining metric that they like to throw around and that those numbers are a lie. It's also a flat out deception that they claim to have left the mining space.
Their percentage of sales figures for mining uses comes from cards that were designed specifically for mining (IE the P102 and P106 cards). When they talk about crypto sales declining, they are talking about those cards, when they talk about profits from miners they are talking about those cards.
This has always bothered me; They never discussed this metric openly until recently when they announced they were "leaving" the crypto space, which is something they don't have a choice in. The fact is that their record sales that have created their current bull market are more based in mining operations than in gaming computers, and there is no way they could ever have a metric for mining sales unless they were discussing cards that were designed for mining. Which means they themselves are either in the dark in regard to how their GPUs are being used which I find unlikely or they are misleading the general public because the numbers they are aware of are far more grim than they want to let on.
They have somehow convinced the general public that miners only buy mining specific GPUs and that the "gaming" gpus are not being used by miners. That is a deception, the run on GPUs was not created by gamers but by miners. And with the miners not having a general interest so far in the RTX branded cards due to potential performance and the abhorrent cost there will be a fairly large gap in earnings that will be difficult to make up.
With the mining issues aside, NVDA is making a huge bet on the future of games. They are attempting to become the APPL of GPUs by locking people into their specific architecture for ray tracing performance, Apple can do this because they create a life style around their products, Nvidia will have a more difficult time convincing people to lock themselves into a single part in a PC for the foreseeable future.
Another issue that is present is the performance of the cards for the price you are paying. The 2080 and 2080ti are not showing benchmarks that highly outshine their predecessors on non ray trace specific games. Sure the RT reflections and soft shadows are really cool and add a really pretty flare to your overall gaming experience, but does it completely change the games enough for a person to spend $1200 on a single GPU? Let alone a person who is a hardcore gamer who cares more about their kill count than if they can admire themselves in the window they just ran buy. If the FPS in something like GTAV which is not optimized for ray tracing is 90 with a 2080ti and is 80 with a 1080ti the benefits are obviously not strong enough for a person to spend $1200 on.
The final thing that was bothersome to me was the tear down and benchmark embargo that Nvidia placed on the reviewers they sent early cards to, this to me would indicate that they knew the overall numbers would be disappointing and that they wanted to keep people on the hook for their preorders without trying to get a refund.
I think overall earnings are going to be disappointing, and there will be a resulting painful realization for NVDA holders. Only the future will tell, but right now things are not looking great on the horizon.
This is not investment advice, only my personal outlook on nvidia and their current state of affairs.