The Dot-AI BubbleSpeculative bubbles excite traders and investors alike.
NVDA is the absolute winner of the AI craze.
Craze is the sentiment of the market cycle peak.
After craze and euphoria, fear and denial will inevitably flood our minds.
It is nothing more than the never-ending cycle of the economy.
A simple line drawn on a chart spells the ultimate demise for speculation.
NVDA is making all-time-highs. Its performance/momentum however is showing alarming signs of weakness.
Beware. Not all is as it seems.
The very nature of a Bubble is that it defies all measurable mathematics.
NVDA wants more. It wants everything. Just like any other corporation would.
For capitalism, more equals more.
NVDA aims to swallow the entire money supply. Improbable as it may seem, physics theoretically allows that.
Divergence is one of the most misunderstood concepts in analysis. Divergence is not describing a future weakness. It describes the current weakness.
NVDA is moving so fast, that its bear market is itself growing exponentially.
If NVDA is now moving slower now than it was in 2015-2018, how fast is it trying to go?
NVDA remembers the explosiveness of that period, and is trying everything to repeat it.
Prices and investors have memory. Both however forget the well-known saying.
Past performance does not guarantee future performance.
This is the Achilles' heel of prices. They promise what they cannot deliver.
Price will reach as high as possible, for as long as there is a willing buyer to take the bait.
For capitalism, more is better, at all costs. The ultimate cost will certainly be paid.
The last buyer will be the last NVDA bear who will give-in the mania. And that will mark the end.
Tread lightly, for this is hallowed ground.
-Father Grigori
