Lately, every brokerage firm that follows Nvidia (NVDA) has upgraded it in the resent past. As our regular readers know, we have been writing about irrational exuberance on Nvidia. We have also managed to complete two profitable trades on the short side on Nvidia.
Yesterday, after the market close, Nvidia reported earnings. First the stock spiked up. As per our prior post, we took advantage of this spike and scaled in a new short position from $24.10. The conference call was long on hope and short on specifics.
This morning we have woken up to a surprise. Citi Group, a tier one broker, has downgraded Nvidia. We will maintain our strategy of short selling on up spikes and taking quick profits when the stock dips.
