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Nasdaq - Buy targets before continuation.I am eagerly anticipating Nasdaq to hit these targets. Once at least one of the two targets is achieved, I'll consider buying more stocks. If the second target also proves correct, I'll be even more inclined to invest further. After these targets have been hitted I expect a move towards ATH and beyond. It could take some months for these targets to play out depending if both of them will get hitted or not. I would say 3-6 months is reasonable. Good luck out there.
NASDAQ:NDXShort
by WealthNode
Meta - To Long, Or To Short?I have to say that Meta is one of the hardest charts that exist to read right now, mostly because for 9 straight months, an unprecedented feat in the history of Facebook, it has gone up in a straight line, and bigly. You only see it clearly on the monthly: And yet the problem with the bull thesis for a new all time high is the '22 bear raid took out all the sell side all of the way back to 2016. Although you can have, and speculators and hodlers have been fortunate enough to have had, a significant retrace afterwards, stocks taking long term lows is usually kind of like when a person turns 50 and starts urinating blood. It means something is wrong with an organ and the time they have left to live is not so long and not so bright. Even the weekly is insanely one-directional This stock will have attention tomorrow as post-market earnings have produced another $20 gain, but notably, as of time of writing, have brought the price only to $319, still underneath the July high. Geopolitical risks abound in the markets right now. Much is happening with Mainland China and the International Rules Based Order. You can consult my previous calls, which are below, for my thoughts on the situation. But the Cliff's Notes of it is that the 24-year persecution and organ harvesting genocide of Falun Gong by the Jiang Zemin faction and the CCP may soon be made public worldwide if President Xi weaponizes those sins to protect China, its 5,000-year-old culture, and himself from the IRBO intending a Maidan Revolution-style coup to replace him with someone from Taiwan that happens to be a fine lapdog to the global regime's interests. What is the bull thesis for Meta? Facebook is something of a panopticon data collection system and advertising network rolled into the guise of a social media platform where people voluntarily disclose their location, interests, likes, connections, and spend time interacting with friends and family. Meta's rebrand is to force the world into something of a Nintendo 64-level version of Second Life, where you're supposed to literally sit in your cube eating the cricket crackers under a bunch of blankets with the furnace/AC off with the VR headset strapped to your face while you do data entry all day. It's really the kind of dystopian thing the Chinese Communist Party really likes, because it means you can be submissive and agreeable slaves that don't threaten its stability and still produce work. If mankind's future is truly to return to tradition (it is), what place does Meta have in it? Meta has very little place in the future, and that's a fundamental problem, really, for everything that revolves around people living chained to computers and phones. A really notable thing is that the Chinese Government, especially under Xi Jinping since he took power in 2013, has not allowed Meta/Facebook to set up shop inside Mainland China. The world's most notorious totalitarian regime and the creator of social credit and censorship does not want Meta/Facebook's influence impacting their citizens. Ain't that something. And yet, you're supposed to be bullish on this... because it's going up. You just want something to go up so you can buy it and feel pleased when you see green, not sell, and then feel sad when you see red, red, red, and are liquidated. This is modern humanity. So here's the question with Meta: is it a short, or is it a long? The truth is that with Meta, it's gone up in the kind of straight line that makes Apple blush for 9 straight months. When something trades like this, you can never say "it's a short." Instead, you can watch for when it does become a short. And we're in the zone. Although the biggest gap has been filled, the monthly candles show that the bodies of the winning streak's candles are still respecting the range created by the February of 2022 doom candle that ended the Party. On the daily, the last five days of price action, which correspond with a Nasdaq that may very well have topped but an SPX that does not seem to have topped yet, are the most bearish they have been during the entire bull run. And so, if you want to get long on open, I can only encourage you to exercise caution. You may really have upside as high as $343. But you may also have upside no higher than $325. It may also gap up on market open and then sell off, and that kind of a sell off at this kind of a time may mean you are trapped. To confirm a bull thesis, $343 needs to be broken and maintained To confirm a bear thesis, the first thing we need to see after the earnings manipulation is for the $288.30 double bottom to be broken. From there, if $258.88 is broken, the trend is over and will have reversed, even though you may see further upside in the interim. A break over $325 and then a rejection under $288 would be the most bearish. If that unfolds, it's no longer a dip to buy. Instead, long term puts while the VIX is so suppressed might really be really, really valuable. And the problem for both bears and bulls is the $40 range that "confirms" whether there's forever uppy or forever doom.
NASDAQ:META
by LordWrymouth
1
Microsoft - Is The Top Already In?One of the key points to Microsoft is it is, in essence, a U.S. state-backed corporation, and one that is trading at more than $2.5 trillion market cap at present. You're looking at a company that just set a new all time high while the overall market is not healthy and the macroeconomic fundamentals are actually bearish. And so, we have to seriously ask ourselves if it's time to short God the top. Microsoft's price action on the monthly is curious. The price action is healthy and natural all the way from where it bounces to the top, and only becomes curiously strange when it gets to the top. Why does a stock that bounces at the right place and forms a fully proper reversal pattern, which we see on the weekly: Only sweep the All Time High? Why doesn't it raid the ATH and run bigly larger like NVDIA did? Well, the answer is actually quite clear when you overlay NVDA to MSFT: In essence, NVDA at $480-450 is MSFT at $350. The difference in price action you see today is because NVDA was relatively weaker in the past, meaning MSFT was inordinately strong in the past. Anything that reaches an extreme will reverse. If it reaches the extreme twice, it will reverse hard twice. The geopolitical situation in the world is not healthy. There is a ton of sabre rattling between NATO and the Nation of China at the moment. The western propaganda machine wants you to believe that Xi Jinping intends to invade Taiwan because he's very evil very super Mao Zedong++, but in reality it's more like the "International Rules Based Order" wants to use the fact that the Chinese Communist Party is rotten and unforgivable as a handle to depose Xi and have Taiwan invade the Mainland under the guise of international "aide". Why this matters to you as a trader is because you're flirting with getting gapped down hard since Beijing daytime is New York night time. If you want to be long right now you need to be hedged long volatility, or you're risking your life. Moreover, Xi, in order to defend himself, his faction of Chinese nationalists, and China's 5,000 year history, can overthrow the CCP in a Gorbachev-style coup overnight, weaponizing the 24-year-long persecution and genocide of Falun Dafa by the faction belonging to former Chairman Jiang Zemin (it died this year). The significance is major to traders because your beloved governments, banks, and corporations have stained their hands crimson flirting with the Jiang faction toadies in Shanghai (Babylon) in order to get all the benefits they desire. Google the Neil Heywood story if you want to see a classic example of a British billionaire getting gibbed by the greatest evil of all time. Much to do before the call's key points. Before we continue, I examine the price action I expect to manifest in SPY (SPX Futures ETF) for the remainder of the month, which can serve as something of a compass for what lies ahead: SPY - A Dip Is Coming. Maybe Buy It? Back to MSFT: This is a very hard setup to trade Because the June high may have been a hard top, double and triple top or not (See TSLA July-September '22) Lower lows lower highs indicates the dip is hard to buy But the short may only take us to the $320 range. Sweeping $300 is the key to a bullish continuation above the highs Maintaining ~$280 is the key to continuing upwards at all. Microsoft has a really notable catalyst in that its earnings are on July 25 postmarket, which means price action will manifest the morning of July 26, which just so happens to be when the next FOMC meeting is. After July FOMC the next FOMC is deferred until September 20, 9 days short of quarter end, notable because of the notorious JPM Collar, which I discuss here: SPX/ES - An Analysis Of The 'JPM Collar' What I expect is we see a fairly violent correction on Microsoft back to the $300s before we can see any kind of further meaningful flirtation with a run over the $350 ATH. But the June high may have been the top for the foreseeable future, as evidenced by the relationship between NVDA and MSFT. Be careful. The time we have left for happy and normal days is so short you can almost count it on the fingers. When things really emerge, Nasdaq 8,500 will be the least of your concerns, really.
NASDAQ:MSFTShort
by LordWrymouth
1
NVIDIA LONG Cloud computing and artificial intelligence (AI) are two of the hottest trends in tech, and will likely remain so for a while. And Nvidia is already successfully tapping into both of them with its graphics processing units (GPUs). Tech companies of all sizes rely on high-powered GPUs for some of the most complex cloud-computing processing, and many of them choose Nvidia's chips. The company's data center business has expanded as a result and now accounts for about 60% of the company's total sales. In the most recent quarter, data center revenue rose 11% to $3.6 billion, nearly doubling the segment's sales from two years ago. Just as data center sales slowly became the largest narrative in Nvidia's growth story, AI is now beginning to play a larger part as well. When OpenAI's ChatGPT burst onto the tech scene months ago, it showed not just how far along AI large-language models are, but it also shined a light on the fact that tech companies will soon need massive processing power for AI-focused services. The good thing is that Nvidia has already been working with tech businesses, including Amazon, Alphabet's Google, and Microsoft, to use its hardware for AI purposes. And that focus will build on its long-term prospects. The company believes it has a total addressable market of HKEX:150 billion in the AI space, and the popularity of ChatGPT -- which amassed 100 million monthly active users in just two months -- helped show that AI isn't just a theoretical market anymore. M< STRATEGY SET UP LONG PT 541$ IF 170-190 BUY AGAIN IF 150-170 2ND Buy below 130 SHORT SETUP
CAPITALCOM:NVDALong
by DaveBrascoFX
6
Nvidia longAI tokens add $17 billion in 24 hours as Nvidia market cap hits $1 trillion Nvidia market capitalization touched $1 trillion before NVDA declined to $401. Nvidia became the fifth company in the US to achieve this milestone after Apple, Microsoft, Amazon and Alphabet. AI crypto tokens, including The Graph and Ocean Protocol, rose significantly, with the latter noting a 12% rally The Nvidia stock, NVDA, and Artificial Intelligence (AI) hype continue to power gains across the Traditional Finance (TradFi) and the Crypto market. With the US-based company hitting a major milestone over the last 24 hours, AI tokens also enjoyed the ensuing bullishness. Nvidia nears the big leagues Nvidia’s stock NVDA is still continuing its rise nearly a week after the historic rally observed on May 25. The company’s share price soared by more than 4% during the intra-day trading hours on May 30, which resulted in the market capitalization of Nvidia crossing the $1 trillion mark. This rally was short-lived, however, as the stock came back down to close at a 3% increase at $401 from the highs of $419 and was still losing value in the after-hours, falling to $398 at the time of writing. For a brief moment, Nvidia became only the fifth publicly traded company in the United States to hit the trillion dollar market cap, following Apple, Microsoft, Amazon and Google’s parent company - Alphabet. The main reason behind this phenomenal rally was the response to its positive financial reports and ongoing AI hype over the last couple of days. This led to the 24% increase on May 25, subsequently impacting the crypto market as the bullishness was not just limited to the TradFi market. The cross-market effects of Nvidia’s achievement could still be seen on May 30 when AI tokens observed a rally following the news of NVDA’s $1 trillion market cap.
CAPITALCOM:NVDALong
by DaveBrascoFX
TSM - Taiwan, Your Semiconductor Long HedgeAt present, the US equities markets are at a critical inflection point, especially tech. We're still in the bear side of a correction in an extremely major bull market impulse fuelled by Party Central's COVID stimulus programs, and yet flirting with all time highs. Sometimes markets top without a blow off. Nasdaq's daily chart, above, shows price raided the 16,000 psychological level and the January 2022 pivot that ended the bull market. This is really significant in and of itself, but even more significant in that the 3% rejection thus far indicates that tech *may* have truly topped already. In my recent call on NVIDIA, some people correctly criticized that I have the problem of being bearish when a stock is clearly bullish. I have thought about this quite a bit and think the criticism is fair. With NVIDIA, I believe the stock has either topped or will top before/at $500 in a coming impulse. However, if one had have just gone long on the dips from low $400s to the $480 mark, they could have financed a freeroll "Short God From The Top" dream trade with potentially huge upside. And that brings us to Taiwan Semiconductor, a company that I believe is a clear long on all time frames and has several significant advantages: 1. It's Taiwan's gemstone and thus highly relevant to the geopolitical concerns I will outline below 2. Producer of much of the world's most advanced chips 3. Market cap still under $500 billion (Thus, room to 2 or 3x in the future) 4. Is not a component of the Nasdaq, the SPX, the Dow, or the Russell, and thus can impulse long even if the equities market corrects 5. Accounts for only 3.4% of the index the SOXX/SOXL/SOXS ETFs underlie, and thus can impulse long even if the semiconductor industry corrects sharply 6. Washington is banning NVIDIA and ASML from selling to China, but never mentions TSM 7. If TSM pulls out the "AI" marketing card with a new offering, watch out for fire. In previous posts I have mentioned that the Chinese Communist Party is about to fall. While people may find that unbelievable or too good to be true, it's worth noting that when the USSR was brought down by Gorbachev and friends on Christmas Day 1992, nobody believed it was possible then either. Those of us who are old enough to remember know you woke up one day to see it all over the news and nobody knew how it would happen. Many entities are considering how to take control of China and its 5,000 year old culture, history, natural resources, and land when the Party falls. The International Rules Based Order wants China for its own reasons, and the reason "Washington" has made itself so close to Taiwan isn't because Xi Jinping intends to invade Taiwan (The CCP is too weak after so many people died from Wuhan Pneumonia), but because the IRBO intends to use The Republic of China to replace the Communist Party for its own ends. The ultimate purpose is to install genuine communism (note the CCP only still practices socialism according to its own dogma) worldwide via panopticon social credit systems and central bank digital currencies. If you want a future you and your family can live in, you want our traditions, imparted by God, and not this junk imparted by Karl Marx and the specters that belied him. I've mentioned before that Xi, an ostensible Chinese nationalist, has the option of weaponizing the 24-year persecution and organ harvesting genocide against the 100 million practitioners of the Falun Gong/Falun Dafa spiritual cultivation practice by the faction of his predecessor Jiang Zemin and the CCP in order to ensnare the IRBO and its banking cartel. However, all of the world's critical pieces (Yellen, Musk, Kissinger, Dimon) visiting Beijing "for talks" combining with a recent significant strengthening of the yuan and a potential recovery of China tech stocks indicates that the IRBO is now onside with the Xi administration. Which means that Xi may have sold out China and the future in a Faustian Pact with the IRBO in order to maintain his power, because he's too much of an idiot to throw away the CCP, return to China's 5,000 years of dynasties, and enter the future. Either way, once there's some kind of news cycle about "Taiwan" (just go look at all the war clamoring that appeared this month in The Economist et al), TSM can moon no matter what the rest of the equities market does, and counts as an excellent long hedge during catastrophe. I can only say that if you go long, especially significantly long, on anything right now, you really ought to be hedging volatility long while the VIX is maintaining a 13-handle. So here's the trade. TSM dumped some 6% on earnings under $98, which is a hell of a dip to buy. It's a dip to buy because daily price action on the way up stopped just short of the curiously-numbered $111.11 (the Chinese are extremely numerological/superstitious), which naturally makes this figure a target for a retrace It's only that on the hourly, TSM doesn't show any signs of having bottomed beyond not making a lower low on the first day. But with the biggest FOMC of the year on Wednesday, July 26 (big hike possible, next meeting not until Q3 end September 20), longing today may have been too early. But not too early by much. Arguably only 3%. The most bullish continuation for TSM would be to maintain a "higher low" formation, protecting the wick of the June low at $94.25. Upside targets are immediately $113+ (Masonry, roar?) and $130 (Masonry, rawr!) if bearish. If all things Taiwan become memefied like artificial intelligence did because of what's going on in China, then there's little to stop TSM from becoming a $1 Trillion market cap company like NVIDIA et al, which would actually mean upside over $200 is in the cards through the 2024 Presidential Election. But mankind's best laid plans are merely those of mice. This race is like bacteria and this planet is little more than a speck of dust when viewed from higher places in the enormous and boundless Cosmos we currently sit in. What the Cosmos looks at is a race, a planet, and an individual's moral standard and spiritual realm. Thus, the more calamity is on deck the more critical it is to take good care of your family and friends and use the time that we all have left before the world changes forever to make up for the things from the past that have been done wrong, when they should have been done well. Take good care of yourselves.
NYSE:TSMLong
by LordWrymouth
1
NVDIA 4HR- Pull back Very LikelySorry for the small screen, but this is pretty straightforward. Bearish Divergence on MACD (not shown cause screen size) along with price action showing slowed momentum when trying to push through the very local high ie. Double top. I would try to catch the bounce at the EMA and or anything within the 0.326-0.618 fib retrace area for all you swing traders out there. Simple, predictable price action. You shall respect the TA, while the weak fall down the wayside. -b
NASDAQ:NVDAShort
by BShellhammer
A Negative Month at these Levels Could Signal NVDA Down to $196We are at a point where NVDA is trading at a Macro Monthly Bearish ABCD PCZ and all the Oscillators are sitting in overbought zones. If NVDA sees a negative monthly candle at these levels, it is very likely that these Oscillators will begin to come down again and signal Potential Bearish Action ahead; if we get such a signal at these levels, then I would typically aim for it to go back down to the level of C of the ABCD as a Minimum Target; but given how high this is and how profitable even a 61.8% retrace would be, I will opt to target the 61.8% retrace instead down at $196.32 as it nicely fits into my typical 3:1 risk to reward requirement.
NASDAQ:NVDAShort
by RizeSenpai
8
SPX/ES - An Analysis Of The 'JPM Collar'Over the last two quarters, financial social media has cared a lot about the "JPM Collar," a series of very large options trades that JP Morgan uses in one of the funds it offers its clients. The theory for speculators is that the JPM collar will be used to constrict the market within a certain range. But as for how that plays out, it's hard for a trader to anticipate, especially amid the daily chop. The levels are on the chart and you can reference them yourself. Below is a print of monthly bars, which is easier to see since I have to compress the TradingView chart to make the bars work: If you're not familiar options, the general idea is this: These options blocks expire September 29 JPM will lose a lot of money if price is over 4,665 or starts to approach 4,665, especially if it happens right away JPM will lose a lot of money if price goes under 3,550, especially if it happens right away JPM will lose a lot of money if price goes under 4,215, especially if it happens right away But a nuance of being long 4,215 calls is that if price is significantly over 4,215 by September, they will make a lot of money on their calls. Geopolitical Risks Before we begin, I'll warn you, as I do in every post, that the geopolitical situation is tense. NATO is at war with the Russian Federation inside of Ukraine and the International Rules Based Order is always talking about "de-risking, but not decoupling" from Mainland China under President Xi Jinping. The risk for markets is, short of a situation where a tectonic/geothermal event surprises everyone and causes the crash of crashes, is that Xi gets up one night and throws away the Chinese Communist Party. Since Beijing business hours are New York night, you'll wake up to quite the gap down that will be hard to recover from, for the Chinese Communist Party and former Chairman Jiang Zemin and its cronies are guilty of the 24-year-long persecution and genocide against Falun Dafa's 100 million practitioners. The Call The most most notable thing about price action is as June closed, range equilibrium between the June high and the October low is exactly 4,000.00 points. Something else I stumbled upon when preparing for this post is that when comparing the Dow, Nasdaq, and SPX futures monthly bars, the three have completely converged. This is the first time since the **2022 top** that this has happened. You can see it on the weekly as well There used to be quite the delta, which allowed for stock picking and trading. If you ask me, what three memelines coming together all at once means is that the markets reached peak overbought, and genuine "overbought" isn't something you can see with an indicator. The daily shows this really only manifested in June. There are some problems with more uppy, as I explain in my calls below on the VIX, which needs to go up so that whales can go back to collecting free money selling volatility: VIX - The 72-Handle Prelude (But note that under the current conditions being summer and we're not that bearish right now, we may only see VIX 50) And the fact that the Nasdaq is just so far away from its trendline that going more parabolic is hard to believe. Nasdaq NQ - A Fundamental and Technical Warning Signal I don't normally call exact areas, but I put a white box with a dolphin because I think price is going there, and will do so fast, like, mid-August fast. That box means 3,778~. This means JPM will be green on out of the money calls, red on its own calls, and red on the 3,550 puts. But JPM doesn't lose money to begin with because they're hedged and will be compensating for the drawdown in other ways, like the alpha they'll generate from going big block long in the dumps under 4,000. The other advantage is it will trap bears who think it's finally the apocalypse they've long been awaiting for the ponzi to go to zero, and they'll buy puts and buy puts even though the iVol is insane from VIX being over 50. Once the craziness is done, the markets will recover, and whoever sold will probably by trapped. So, be careful out there. Wall Street's best laid plans can be blown to pieces in an hour by Heaven, for men are no better than mice in this boundless Cosmos.
CME_MINI:ES1!
by LordWrymouth
6
NVDA - MyMI Option Plays - CallsNVDA has outperformed outperformance in it's definition. This Titan has broken into a higher price range channel (top level of the orange channels) and is showing the potential to be headed back to $500. The most recent breakout in this week's trading sessions shows that there is still money on the sideline waiting to be injected in the markets and that we have much higher to go. This has taken us bullish in all of our current open trades. We are not currently in NVDA but we are patiently awaiting a re-entry that's a little more favorable for a longer-term call option and share hold.
NASDAQ:NVDALong
by MyMIWallet
UPDATE: Nvidia on track to its target of $562.33As mentioned before, there was a large Cup and Handle that formed on the price chart. We then had the price break up and out of the brim level, showing intense demand and buying. We also have 7>21>200 MA - Bullish and RSI>50 (Bull zone). The first anticipated target we set was a medium term one to $562.33 Nvidia continues to make higher highs and all time highs. And this will continue as long as people are feeling bullish and confident with the current AI, Machine learning, deep learning and quantum computing developments on the rise. ABOUT THE COMPANY Founding: Nvidia Corporation was founded in 1993 by Jensen Huang, Chris Malachowsky, and Curtis Priem. Headquarters: The company is headquartered in Santa Clara, California, USA, in the heart of Silicon Valley. GPU Pioneer: Nvidia is credited with inventing the Graphics Processing Unit (GPU) in 1999, revolutionizing the gaming industry by allowing for more complex visuals and 3 Industries: While Nvidia is best known for its impact on video games, its GPUs are also used in areas like artificial intelligence, high performance computing, data centers, automotive technology, and more. GeForce: One of Nvidia's most well-known product lines is the GeForce series, which are GPUs designed for consumers, primarily for gaming and video editing. Tegra Processors: Nvidia also produces Tegra mobile processors for smartphones and tablets, as well as vehicle navigation and entertainment systems. AI & Deep Learning: Nvidia has made significant contributions to the fields of AI and deep learning, with their GPU architectures being used to accelerate these tasks.
NASDAQ:NVDALong
by Timonrosso
1
Nvidia -> Slowing Down And Now?Hello Traders and Investors , my name is Philip and today I will provide a free and educational multi-timeframe technical analysis of Nvidia 💪 Looking at the monthly timeframe you can see that after Nvidia retested previous support and the 0.786 fibonacci retracement at the $110 level, there was a solid rally towards the upside. Also on the weekly timeframe you can see that we had a juicy inverted head and shoulders reversal pattern and I pointed out all the reasons why I do expect the upcoming pump of roughly 120% towards the upside. Looking at the daily timeframe now you can see that Nvidia is a little bit overextended is also slowing down with momentum so there might be the possibility that we will see a short term correction after Nvidia actually breaks the current uptrend line. Keep in mind: Don't get caught up in short term moves and always look at the long term picture; building wealth is a marathon and not a quick sprint 📈 Thank you for watching and I will see you tomorrow! My previous analysis of this asset:
NASDAQ:NVDAShort
by basictradingtv
62
Why the Nasdaq may not capture the full growth potential of AIThe start of 2023 has marked the return of tech growth stocks alongside the surge of generative artificial intelligence (AI) and large language models (LLMs). The biggest tech companies in the world have benefitted from the buzz created by ChatGPT and rapidly rising enthusiasm around AI in general. Nvidia, a leading semiconductor company seen as one of the main AI beneficiaries, has advanced the most within the Nasdaq-100 and even joined the trillion-dollar market cap club just weeks ago. The year-to-date rally of ‘Big Tech’, led by Nvidia, has resulted in a strong return differential of 22.33%1 between the widely followed tech gauge (the Nasdaq-100) and the broad equity exposure (the S&P 500). The top 10 holdings in the Nasdaq-100 by contribution to return (CTR) have jointly posted 30.45% year-to-date, representing more than 82% of the total index return. This advance of the top Nasdaq-100 holdings, capitalising on the buzz around AI, is begging the question from investors whether allocation to the Nasdaq-100 already offers good exposure to the long-term investment potential associated with the AI megatrend. To answer this question, we have to take a step back and think of the concept of megatrends and benchmarks in the portfolio construction process. Benchmarks are usually viewed by investors as a core allocation, while thematic investing is being used as a return enhancement play that benefits from the evolution of various megatrends. In the case of the Nasdaq-100, we can point to several arguments why a thematic strategy focused on the AI theme might be a better option if an investor’s goal is to benefit from the long-term growth potential offered by AI. 1. The AI space represents a wide variety of areas that can achieve wider adoption and success at various points in the future. A targeted AI strategy can build exposure to the theme and its evolving trends through a diversified basket of more pure-play companies involved in various AI activities. In turn, the Nasdaq-100 will tap into the space only through a handful of companies that would offer a less comprehensive and less pure exposure to the theme. 2. A targeted AI strategy has the potential to capture the mega caps of tomorrow early on and with a meaningful weight within the portfolio. Investing in AI through the Nasdaq-100 might be seen by investors as a safe way to avoid losers and focus on more successful AI companies that made it into the benchmark. However, this approach does not allow investors to reap the return potential associated with exciting smaller companies early on. After all, the growth potential driving the returns in the tech space is highest for smaller and younger companies. Investing Tesla and Nvidia (the latest two companies that managed to hit a $1 trillion market cap) in them 3 months after they went public would have resulted in much higher annualised returns in comparison to returns after they joined the Nasdaq-100. In addition, it took both companies around 2-3 years to join the tech benchmark and, after they did, their starting weights were only 0.40%-0.50%. In contrast, thematic strategies might invest in companies shortly after their IPO (initial public offering) dates and might allocate a more meaningful weight to them. 3. A satellite thematic exposure can improve the risk-adjusted portfolio returns through increased diversification. The concept of diversification was first formalised by H. Markowitz as early as in 1952. However, in practice, it’s not feasible to hold all stocks in the investable universe and investors stick to broad benchmarks to build their market exposure. In this situation, thematic investing represents a novel way to split the universe of investable companies and identify promising opportunities aligned with megatrends shaping our future. Relatively low overlap of thematic strategies with broad benchmarks is what makes them particularly attractive for a satellite exposure. Trying to kill two birds with one stone (that is, building a core tech exposure and capturing the potential of the AI theme) by using the Nasdaq-100 could backfire. It could deteriorate diversification and risk-adjusted returns for two reasons: 1) Sticking just to AI companies within the Nasdaq-100 narrows down the return drivers associated with the AI megatrend; 2) Investors increase idiosyncratic risks in their portfolios associated with the biggest tech companies, most likely captured in some other portfolio allocations, for example, the S&P 500. Thematic strategies specifically focused on AI might represent a better option for investors seeking to benefit from the long-term growth potential associated with the megatrend in contrast to the theme exposure offered through the Nasdaq-100. When selecting the specific AI strategy it’s important to understand how each strategy captures the space and to align it with investor’s beliefs about the future development of the megatrend. Diversification benefits and potential return drivers associated with the theme are yet other important considerations that help to govern the strategy selection process. Sources 1 As of 27 June 2023. This material is prepared by WisdomTree and its affiliates and is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. The opinions expressed are as of the date of production and may change as subsequent conditions vary. The information and opinions contained in this material are derived from proprietary and non-proprietary sources. As such, no warranty of accuracy or reliability is given and no responsibility arising in any other way for errors and omissions (including responsibility to any person by reason of negligence) is accepted by WisdomTree, nor any affiliate, nor any of their officers, employees or agents. Reliance upon information in this material is at the sole discretion of the reader. Past performance is not a reliable indicator of future performance.
NASDAQ:NDX
by aneekaguptaWTE
NVIDIA - Momentum but need to 'slow down' before continuationNVIDIA is a renowned technology company known for its cutting-edge advancements in areas like artificial intelligence, gaming, and high-performance computing. With a strong track record of innovation and a leading position in its industry, NVIDIA has established itself as a standout company. Since October 2022, NVIDIA shares have been on an upward trajectory, and during that time plenty of opportunities (that I all missed!) in buying at breakout points from a solid base and also from a pullback and B. Looking ahead, there is an anticipation of NVIDIA's stock continuing its upward momentum next week. The missed daily pivot on Friday suggests a potential continuation of buyer's control. Having said that, I do hope the bullish momentum come to a 'halt' when it testing the all time high at $440.27 and then start to make a solid pullback and perhaps form a base above the moving averages, before the stock makes new all time high throughout the year.
NASDAQ:NVDALong
by sufiansaid
6
What does real estate have to do with AI?To shed some light on the potential of artificial intelligence (AI), and discuss the role of the supporting infrastructure enabling this boom, we were delighted to leverage the expertise of Eric Rothman, Portfolio Manager, Real Estate Securities with CenterSquare. CenterSquare is a dedicated real estate investment manager, with around $14 billion under management, and Eric has been with the company for 17 years. Before we explore the Nvidia story and the relationship between AI, data centres, and ‘new economy real estate’, let’s define what that latter phrase means. New economy real estate is supporting technological advancements, like AI What is ‘new economy real estate’? Eric noted that there is so much beyond the traditional ‘4 foodgroups’ of real estate: 1) retail 2) office 3) residential 4) industrial When CenterSquare defines the ‘new economy real estate’ space, Eric noted that the larger components include data centres, cell phone towers, and warehouses dedicated to new economy logistics—things like ecommerce fulfillment. This is far from traditional, industrial real estate. Some of the smaller segments include life sciences, cold storage, and office space that is uniquely tailored to technology tenants, typically located in specific cities with focused pools of technology talent. Such cities might be Seattle, San Francisco or New York. These types of ‘real estate’, most notably data centres, are vital to support growing technologies like AI. The Nvidia story—$1 trillion to be spent? There has been a huge amount of excitement and discussion around Nvidia as the stock has enjoyed overnight success on the coattails of the AI boom. ‘$1 trillion’ is a big number (and a nice headline), but it’s very difficult to forecast where generative AI will take us. Some people say it is like inventing the wheel or the personal computer. This is a big claim, and only time will tell. If people are thinking about ‘data centre REITs’ as an investment, they have to understand that data centres just fulfil the provision of power, cooling, and connectivity. The data centre REITs do not actually own the computers. The tenants invest in the computers. One thing that is absolutely true, however, is that as an owner, you love to see the tenants putting money into the space that they are renting. Why? This makes it less likely they are going to leave. Therefore, a greater investment in AI technology and computing power may be a positive signal for the supporting real estate (like data centres). Eric’s conclusion, whether thinking about the impact of generative AI on data centre REITs or cell phone tower REITs, was that the move in share prices hasn’t reflected where we could be going yet. Connectivity and data centres will be vital components for artificial intelligence, but it’s not yet clear how or when investors are going to reflect that in the real estate prices. Eric noted that investors frequently forget about the buildings until later in a cycle or a trend. Greater computing power = greater energy consumption? Another aspect that we discussed was energy usage. Eric estimated that newer AI-focused semiconductors draw more power, not just a little bit more power but a step change in power consumption. A chart from the ‘Decadal Plan for Semiconductors’, a research report by Semiconductor Research Corporation allows us to compare compute energy to the world's energy production. A critical point to keep in mind is that ‘something has to give’; simply continuing to add computational capacity without thinking of efficiency or energy resources will eventually hit a wall. However, if history is any guide, we should expect that, as demand and investment in computational resources increases, there will be the potential for gains in efficiency, improved model design, and even different energy resources that may not yet exist today. Since many investors may be less familiar with cell phone towers, Eric made sure to mention just how strong of a business model he believes this to be. Now, it’s true that these REITs have not performed well in the past 18-months, but we are right in the middle of the current 5G rollout. Tenants have long leases, there is lots of demand, and there are even consumer price index (CPI) escalators that increase the rent to be collected. Conclusion: a different way to think about real estate It was great to be able to spend some time speaking with Eric and to learn about what’s happening both in the broader real estate market as well as in the more specific, new economy, ‘tech-focused’ market. The full discussion is accessible on behind the markets podcast This material is prepared by WisdomTree and its affiliates and is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. The opinions expressed are as of the date of production and may change as subsequent conditions vary. The information and opinions contained in this material are derived from proprietary and non-proprietary sources. As such, no warranty of accuracy or reliability is given and no responsibility arising in any other way for errors and omissions (including responsibility to any person by reason of negligence) is accepted by WisdomTree, nor any affiliate, nor any of their officers, employees or agents. Reliance upon information in this material is at the sole discretion of the reader. Past performance is not a reliable indicator of future performance.
SPARKS:AIX
by aneekaguptaWTE
1
Oh no! A Classic WTF Animal is that pattern!I've detected the "WTF Animal" is that pattern in NVIDIA. Is it a dinosaur? A dog? An elephant? Something from out of this world? The "WTF Animal" is that pattern has been around for years now, but only now am I just sharing it. The animal I see is a dinosaur, but I also see how it could be a llama or a gazelle of sorts. Perhaps I need to draw it again. I don't have a position in NVIDIA at the moment, but it is a fascinating company to watch as AI takes the center stage in everything we do. I'll wait around for a trade, but for now I am neutral and just watching. Sometimes it's the best thing you can do: just watch. Sit on your hands. I've never made a good trade that is forced and not planned. Many of you can probably relate. Also, never trade because you think have to. The thing is, currently NVIDIA has all of these characteristics - people think they have to get in on the AI hype. That's not true. I must thank the "WTF Animal" is that pattern, because at the end of the day, the confusing chart and drawing, helps me pass time rather than rushing a trade! This pattern is usually detected when a chart looks so outlandish yet interesting, bullish but also bearish, confusing but also intriguing, that all one can see is a strange animal of sorts. Next time you think you're going to rush a trade, just remember the "WTF Animal" is that pattern. It'll save you from taking a trade you never wanted to take in the first place. Before placing that uncertain trade, first go ahead and draw the animal you see. But remember: this is not an easy pattern to spot.
NASDAQ:NVDA
by scheplick
18