Is the Nvidia hype over?

Arguably the most important question today that’s on everyone’s mind is whether or not Nvidia continues to break out or rolls over and breaks down.

And it’s a very important question:

One implies the end of the bull market as the most important stock, within the most important industry-group, breaks down and heads into a prolonged sell-off.

The other implies that this bull market is catching a second wind, and the most important stock is ready to resume its leadership role.

It’s no secret that semiconductors have cooled off throughout the summer.

But they’re still the leading industry-group year-to-date.

What happens if we get through the next week and a half of very normal summer volatility without a significant breakdown in semiconductors?

Do they continue to extend their lead through the end of the year?

And what about NVDA?

After running nearly 200% YTD, doesn’t it make sense for NVDA to consolidate through a typically volatile summer period?

NVDA failed to take out its August 5th low, something that we’ve keyed in on across multiple sectors and individual leaders in the market, telling us that maybe the low for the summer period is in.

And the 200-day moving average is still intact and NVDA is trading above its 50 RSI giving the momentum edge to bulls.

Is this just a massive pennant forming? A continuation fractal within an on-going bullish uptrend?

I know a lot of people who would hate to see it that way.

But that’s their problem. It’s not mine.

We opened a new position in NVDA yesterday following the logic that this bull market has legs, and we expect NVDA to resolve to the upside.

If you want to take the trade with us, including a bunch of other incredible perks, click here to find out more.

And it’s not just NVDA..

NVDA, TSM, AVGO, and TXN are just four large caps consolidating through the summer and poised to breakout again into all-time highs.

There are a bunch of mid cap and small caps as well.

What do you think? Are semiconductors about to roll over here?

Is NVDA topped out? Is this bull market really over?

Let me know what you think!

Cheers,

Hamilton

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