To The Moon

$NVIDIA Corp(NVDA)$ $SPDR S&P 500 ETF Trust(SPY)$ $Tesla Motors(TSLA)$ $VanEck Semiconductor ETF(SMH)$ 

📊 Market Warning - 29 August 2024: NVIDIA’s Plunge Signals Danger Ahead—Extreme Short Term Caution Required! 📊

Kia ora Tiger traders!

I’m a little late with my report today after a big nap this afternoon following a huge night last night watching the market and Nividia’s performance. Phew that’s done and dusted right!

Strap in and hold tight~NVIDIA delivered a gut punch that could send shockwaves through the entire market! With a jaw-dropping 10% drop, this market leader’s performance is a flashing red warning sign. The whole market is teetering on the edge, and it’s time to sharpen your strategy and laser-focus on survival. It looks like it’s rallying a little pre-market at $121.61, it’s holding on after a double bottom. My favourite analyst; Jean Munster believes that although we may see a dip in the short term NVIDIA is going to be bigger than the internet! Scalping and trading short term will be my focus at present for the next week. Most action will occur in the first hour of open.

Let’s break down what this means for the Dow, Tesla, and everything in between.

🚀 NVIDIA’s Report - The Missing Spike and Why It Matters 🚀

• Current Performance:

• Price Action: NVIDIA, the heavyweight champion of tech stocks, just got knocked out. Closing down around $116 after a brief and failed after-hours rally, this is a stark reminder that even the giants can take a tumble.

• Chart Insights:

• The first chart paints a picture of disappointment—no repeat of last year’s heroic spike. Instead, NVIDIA has tumbled back down, failing to hold critical levels. We’re now at a crucial support point of $116, and the market is collectively holding its breath.

• If it breaks below $114, we’re looking at a deeper plunge. This isn’t just another dip—it’s a potential market avalanche.

• Future Outlook:

• While analyst Jean Munster, ever the optimist, hints at a potential rally within 10 days, it’s hard to see how NVIDIA claws its way back from this much damage. The optimism is there, but the reality is grimmer.

• Action Plan: If NVIDIA somehow claws its way back to $122, you may consider it a gift and take the money. The September-October period could easily turn this into a prolonged downturn, and you don’t want to be left holding the bag when the music stops.

📉 Sector and Market Implications - When a Leader Stumbles, Everyone Follows 📉

• Semiconductors (SMH):

• The second chart is a cautionary tale for the entire semiconductor sector—breaking down hard, with an $8 drop and trending towards new lows. This isn’t just NVIDIA’s problem; it’s a sector-wide issue. Some are rallying pre-market. I’m all over Apple 🍎 which is pushing up to a higher corner.

• If this trend continues, expect a rough ride through October. The market leader’s fall could trigger a domino effect—don’t be the last to react!

• SPY (S&P 500 ETF):

• The third chart shows the S&P 500 teetering on the edge of a cliff. If key support levels break, we could see a cascade of selling that drags down the entire market. This is not the time for complacency—be prepared for volatility.

• Remember, when the market leader stumbles, the rest are quick to follow. Stay vigilant and keep your risk management tight!

• Dow Jones Industrial Average:

• The Dow is hanging on by a thread, with futures up slightly, but don’t let that fool you. This could easily flip negative as broader market sentiment turns south.

• The Dow has historically shown resilience, but with the current pressure, it might not hold up. Be ready to pivot quickly—this could get ugly fast.

• Tesla (TSLA):

• Tesla’s taken a hit, trading down to $202. If it can’t hold the line at $195, it could signal further trouble. This isn’t just another dip; it’s a sign of deeper market weakness. If Tesla follows NVIDIA’s lead, the market could face even steeper declines. It’s rallying at $208.70 pre-market.

• Keep an eye on that $195 level—if it gives way, brace for impact.

📉 Strategy - Extreme Caution: Now Is Not the Time for Heroics 📉

• Current Positioning:

• NVIDIA’s performance is dragging down market sentiment like an anchor, stripping away any remaining bullish momentum. This isn’t the time to be a hero—extreme caution is your best strategy.

• If we see any bounce in the next day or two, treat it with suspicion. It’s likely a short-lived relief before the next leg down. Lighten up on positions, raise cash, and stay nimble.

• Watch List:

• Key Levels to Monitor: NVIDIA at $116 support, $114 breakdown, and a potential plunge to $90 if the selling accelerates.

• Tesla: The $195 support level is your line in the sand—if it breaks, expect a fast and steep decline. It’s rallying at $208.70 pre-market.

• Market Sentiment: With S&P futures sagging and the Dow barely afloat, this is a time for extreme caution. Any rebound could be a bear trap, leading to even steeper declines later in the month. Don’t be fooled—stay defensive!

🤖 TigerGPT: With NVIDIA’s collapse shaking market confidence, how would you adjust your portfolio to mitigate potential losses and prepare for further market declines?

Happy trading ahead. Cheers, BC 🍀

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