US Nas 100Short
Tech Crash
Updated
"I am not a financial advisor, I just trade for myself and publish ideas to see how they played out for future reference"
So there's a lot of noise about the next big crash coming, which I think most will agree with especially with the way things are right now. With the S&P 500 Rally being moved heavily with the tech market and AI bubble I believe that this is where we will start to unravel.
In these charts you can see the the Nvidia bull run started a rally in the US NAS 100, Invesco QQQ Trust & SPDR S&P 500. I know it wasn't solely Nvidia that caused this as other companies involved within Tech & AI help with this move but Nvidia is the one that sticks out for me and is the company I'm using as reference. You can see in all the charts apart from the Nvidia one that the AI surge caused the rally and translated across to the other markets.
I'm currently not in any trade at the moment and sitting on the side waiting to enter, but my plan for entry is when Nvidia retests it's ATH. I don't believe there is much room for increase at levels above $470 so the risk reward seems to be in favour of a bearish trade. Now there's obviously the chance we don't see them levels again and in that case I would consider entering shorts on the Weekly trend break and go short on the retest of this trend.
Once Nvidia makes either of these moves (Hopefully move towards the ATH) I will be going short on the other markets, especially the US Tech market (US NAS 100), I believe when Nvidia is exhausted the other tech companies in the AI space will also burn out, when the eventual fall happens the other markets will be taking big hits too. Right now I don't have my TP/SL targets in place as I haven't entered a trade, when I do enter I will update everything below
Again I am not a financial advisor and use this platform for the sole purpose of keeping track of ideas and seeing how they played out.
So there's a lot of noise about the next big crash coming, which I think most will agree with especially with the way things are right now. With the S&P 500 Rally being moved heavily with the tech market and AI bubble I believe that this is where we will start to unravel.
In these charts you can see the the Nvidia bull run started a rally in the US NAS 100, Invesco QQQ Trust & SPDR S&P 500. I know it wasn't solely Nvidia that caused this as other companies involved within Tech & AI help with this move but Nvidia is the one that sticks out for me and is the company I'm using as reference. You can see in all the charts apart from the Nvidia one that the AI surge caused the rally and translated across to the other markets.
I'm currently not in any trade at the moment and sitting on the side waiting to enter, but my plan for entry is when Nvidia retests it's ATH. I don't believe there is much room for increase at levels above $470 so the risk reward seems to be in favour of a bearish trade. Now there's obviously the chance we don't see them levels again and in that case I would consider entering shorts on the Weekly trend break and go short on the retest of this trend.
Once Nvidia makes either of these moves (Hopefully move towards the ATH) I will be going short on the other markets, especially the US Tech market (US NAS 100), I believe when Nvidia is exhausted the other tech companies in the AI space will also burn out, when the eventual fall happens the other markets will be taking big hits too. Right now I don't have my TP/SL targets in place as I haven't entered a trade, when I do enter I will update everything below
Again I am not a financial advisor and use this platform for the sole purpose of keeping track of ideas and seeing how they played out.
Note
Opened Short on NVIDIA @478.5Earnings comes out tomorrow, I expecting a pull back after the report. Didn't open full size position because there could still be room towards the upside and keeping some funds aside for either higher targets ($490/500) or poor earnings report.
Target for NVIDIA is low $400 to High $300
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