Market On Open - Thursday 22 February

In Which King Jensen Saves Capitalism

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Not Over Till Its Over

The selloff - it can barely be called that - in recent days can be ex post facto explained by market nervousness over the fate of NVDA earnings, which is to say whether AI be real or some kind of trickery. But in truth, equities are extended on most any short-term chart measure and were due a breather. NVDA duly printed a strong quarter (you can see our video analysis of their quarter, here) and right now the market is back on the up. Personally I banked some modest gains by selling all my SQQQ holdings yesterday before the close; and in our 3x ETF model portfolio we paper-sold all short positions at the close. (Paying members here will have received real-time alerts before those trades in our Slack system). At the moment those look to be good decisions, but let’s not get ahead of ourselves. In particular let’s look to the close today and tomorrow at NVDA; during regular trading hours is when we will see the impact of NVDA options positioning - options do not trade in post- or pre-market sessions which can mean a liquid stock like NVDA can roam a little more freely than normal during those periods. The New York close is an important yardstick.

Our usual charts follow. Equities still look extended. I personally sit heavily net long but I am wary of a pullback and if one comes along I will add short hedges in the usual way - again, paying members here will get those alerts before any such trades are placed.

Paying members of Inner Circle, scroll down for our long- and short-term take on the S&P500, the Nasdaq-100, the Dow Jones 30 and the Russell 2000 - including the regular ETFs, the futures, the 3x leveraged ETFs and then finishing with a take on sector ETFs in semiconductor, tech, and the Fangs.

(Not a paying member? Sign up right here. If you’re not sure about committing, just take the monthly. If you like it and want to take an annual, we’ll deduct that first month’s fee so you’re not out of pocket. If you hate it, you’re down only $299).

Note - to open full-page versions of these charts, just click on the chart headings, which are hyperlinks.