Short

Updated

$NVDA See You At $200s

I believe NVDA will see a similar correction to November 2021.
In Nov 2021, NVDA went from highs of $346.11, on Nov 22, to lows of $108.16, on Oct 13.
(-69% drop in around 320days)
We see from lows of $108.16 (Oct 13, 2022) to current ATH of $502.52 (Aug 24, 2023) (+400% Gain in around 320days)
What do we know? We know that this stock tends to go down just as fast as it came up.
Looking to enter longs / full exit short somewhere in the $200-$250 range

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Gaps tend to be filled due to various natural, psychological, and physical principles. Here are a few contexts in which gaps tend to be filled and the reasons why:

1. Nature and Physics:
Diffusion: In nature, substances move from areas of high concentration to areas of low concentration, filling gaps. For example, a gas released in one part of a room will eventually spread out to fill the entire room.
Gravity: In physical systems, gaps tend to be filled due to the force of gravity pulling materials into lower spaces or voids.
2. Psychology:
Cognitive Closure: Humans have a psychological need for closure and dislike uncertainty and ambiguity. When people encounter gaps in their knowledge or understanding, they tend to fill these gaps with information, often relying on heuristics, assumptions, or beliefs to achieve a sense of closure.
Pattern Recognition: The human brain is wired to recognize patterns and make connections. When faced with incomplete information or patterns, people tend to fill in the gaps based on their previous experiences and knowledge.
3. Economics and Market Dynamics:
Market Gaps: In economics and business, when there is a gap in the market, meaning an unmet need or demand, it creates an opportunity for companies or individuals to fill that gap by providing a product or service that meets that need or demand.
Arbitrage: In financial markets, price gaps between different markets or similar assets are often filled as traders exploit these differences to make a profit, bringing prices into equilibrium.
4. Ecology:
Ecological Succession: In ecosystems, when there are gaps or disturbances, such as those created by forest fires or logging, new species will colonize the area and eventually fill the gaps, leading to a new stable community.
5. Technology and Information:
Information Gaps: In the information age, gaps in knowledge or data are often quickly filled by researchers, developers, or contributors who generate and share new information or create new technologies to address unmet needs or unresolved problems.
6. Social and Cultural Contexts:
Cultural Adaptation: Gaps in cultural understanding or expression are often filled over time as people adapt, assimilate, or integrate new elements into their cultural practices and beliefs.
7. Health and Medicine:
Wound Healing: In biology, gaps or wounds in tissues activate a healing response, leading to the regeneration of tissues to fill the gap.
In all these contexts, the tendency for gaps to be filled can be seen as a move towards equilibrium, balance, or completion, whether it be in physical systems, ecosystems, markets, or human cognition.

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$375 looking guaranteed. The real fun begins when we start filling gap 320-365 (around $45 range, or +-12.3% range)

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Oddly Familiar Pattern Forming on the 45 Minute

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What would like to see

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Not as many buys as the previous time we were at these price levels ($400-$440)
Longs would have liked to see a huge bullish move similar to the previous run up to $500. You can see these candles in green bubbles (bullish bubbles).
The orange bubbles signify areas where we have gone a certain range and then sold off showing not as much buying power.

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June 2023 to current..

July 2022 to September 2022

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As stated before, nice bounce off $442.

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Should be under 375-385 by the EOM (End of Oct) if this plays out as originally thought.

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1 Day Chart Inversed (May 2023 - NOW)

1 Day Chart Non-Inversed (Apr 2022 - Jan 2023)

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With the current bearish momentum, seems likely we retest 410s.

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hit retest zone

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possible stoploss areas

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$400-$405 on watch

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very nice

Trade closed: target reached

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