Price Action, news and BTC sell off indicates risk-off sentimentFor two weeks I thought it was abnormal to see huge sell offs at or around $130. I finally understand after reading some articles from MNBC & Yahoo Finance. First, it was the Blue Line Capital's interview: The Setup, More than NVDA. The analyst interviewed mentioned that although NVDA makes up a big amount of Blue Line Capital's investments, he holds short positions because of..."moving to small caps" and the "current environment".
Then to the Yahoo Finance article "Nvidia has lots of questions to answer this week...". Here the fourth paragraph caught my attention. It's about what investor's will ask, basically the analyst's own questions. "Whether and when will NVDA GPU slow down and not whether customers are buying them faster than they can use them."
Combing those two sources, I get the idea that big institutions (those that were selling the last 2 weeks) are in de-risking mode. Everything that NVDA has to offer seems to be already priced into $130 and liquidity moving to small caps along with economic & world events are the cause. In other words, institutions seem to think they're overbought and are now trying to sell off NVDA.
Just now BTC selling off 9 days of gains before NVDA earnings day, is another contributing factor to a de-risking sentiment.
