Our longer term negative thesis on Nvidia has not changed. The beauty of the ZYX Change Method is that we are able to take advantage of short term wiggles within the longer term context. We exited our prior $NVDA short position with a profit when the trailing stop per the prior post hit at $20.26.
We anticipate tons of stop orders entered by shorts between $22.20 and $23.20. As these stops hit, Nvidia will get more fuel to go up. Further, technicians will be touting breakout as the stock has broken out over the after hours last spike to $22.00. Very short term nimble traders may consider going long and participate in the short squeeze here.
Point of this blog is to serve our readers who for the most part are not scalpers.Therefore, the official trade we will take for measuring our performance will be on the short side. We will look for signs of exhaustion preferably after a parabolic move to go short again.
