Too late or early on Nvidia ($NVDA)? Depends on your timeframe. – June 4, 2021


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Today I want to look at NVIDIA ( NASDAQ: NVDA ), here’s why: We look at the stock and you can see this thing broke out a few days ago and it’s up from the breakout, almost 10 percent. I actually just put it on our Active Trade List today. There are 2 reasons for that, first of all, because I didn’t see it when I would have put it on. I would have looked at it and put it on right back here.

I drew this on the 28th, which was the breakout day. I think I was obviously talking about it and mentioning this to our people at Stock Market Mentor. This is the day that you are actually buying the stock. We got a lot of people into it on this breakout day, I just wasn’t one of them. I had stuff going on, I didn’t buy it. And so yes, I have had a little bit of regret here, I will admit it, I have been mad at myself that I didn’t buy the stock when everybody else at Stock Market Mentor did.

But then I look at the weekly chart and I see how this is trading and I see that this can have a lot more upside from here. Yes, the best entry, the most recent entry here was a move above 650.00, now it’s over $50.00 higher than that. So for typical traders, to be honest with you, they would probably be looking to take some profits, the ones that bought it right. I am just looking at this as a longer-term trade.

There is a big semiconductor shortage, NVIDIA ( NASDAQ: NVDA ) is one of the leaders in its industry. So the way I look at it, as fast as you can churn them out, people are going to snap them up. The one thing that you do not have a problem with is inventory unless you are looking at a lack of inventory as a problem. So without looking at anything else it seems to me like NVIDIA ( NASDAQ: NVDA ) would be a good company to invest in.

Now, what would trump that would be if the chart stunk. If the chart was bad and showed this stock moving lower, then irrespective of what I think, irrespective of what the economy is doing (this is a lot of irrespectives), irrespective of what the fortunes of the company are, supply and demand, blah, blah, blah. None of that would matter because the stock isn’t doing what it needs to do in order for us to make money.

I like having a thesis that kind of underpins the movement of the stock, and then I like to have the stock doing what it’s doing. So I think this is going to continue to go higher. It is not going to be in a straight line, it wouldn’t surprise me, though it would disappoint me, if the stock pulled back for a day or two next week. It isn’t going to do it today, the market is closing in just a few minutes. But for the time being, it looks to me like this stock is ready to keep going.

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