Are you still in Nvdia (NVDA)? Here’s your next move. (November 14, 2016)
NVDA
I want to look at NVIDIA ( NASDAQ:NVDA ) today, and here is why: The stock has been in a monster uptrend; in hindsight it has given us an opportunity to buy, “Oh my gosh, here is the entry. There was a great entry there,” and this and that and the other thing. But in real time it has just been a difficult stock to buy, because the momentum, particularly here, was so strong, so high. But then you get this breakout. Look, here is the trade for NVIDIA ( NASDAQ:NVDA ) stock. I don’t want to bet against this stock. That has been a fools errand, no question about it, so you don’t want to bet against this stock. BUT, the last time this moved on this kind of volume, what happened? This was a big breakout here, and then the stock continued to move higher. It had also been trading sideways for a month and a half.
Well here, the stock has really been kind of trading sideways as well, maybe up a little bit more. You could see this kind of dip down, where as this really didn’t have one, it was more like a sideways thing, but I am splitting hairs, they are kind of the same. But this kept going. And why did it keep going? Because institutions weren’t selling. The volume dropped off almost right away and the stock continued to move higher. So there was a supply issue, not a demand issue. Plenty of demand for the stock, not a whole lot of institutional selling, so the price went higher. What I am saying here is, I think that it is time to go. It is time for you to take your money. I had mentioned this last week BEFORE the company reported earnings, that I thought it was risky to be holding over earnings. Just risky, not that the stock was going to move down, it was just a high risk. And then when the company reports earnings I suggested, “You know what? I would sell into this strength, I would sell into these.”
Again, it has nothing to do with being a stock picker, picking a direction or trying to be right or anything like that. It all has to do with just the assessment of which way the aggressive money, the big money, is going. On Friday this looked like, I am not going to say ‘a last gasp’, but it was a lot of buying, perhaps short covering. The stock moved higher, there has been no continuation today, no continuation. So my suggestion is, take your money and run. Don’t short the stock, take your money and run. You have almost top ticked it if you do. If instead you decide, “Well I have sold the stock too soon. I want to keep it.” Well wait for the stock to hit a new high and buy. Every time it has done that in the past you have had plenty of opportunity to buy. But I just think here it is time to take your profits. Or at the very least or most however you want to describe it, keep a tight stop on it. When a stock has gone up and done exactly what you have been hoping for and then some, tip your hat to the gods. A little nod to the gods of Wall Street, don’t ask for more, just be happy with what you got.
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