NVDA fails to break above $227; repeated rejections indicate market skepticism and lack of capital.

today we'll have another test here on 227 for Nvidia. Pretty critical line. Uh we did lose it in the post market. We lo, you know, it was is a little aggressive yesterday. you know, yeah, maybe had some trading enthusiasm, but we've got a few.

We had at least two big rejections yesterday on 227 actually during the trading day.

But um Marll should recover if Nvidia really holds a balance here.

once we got once we got Worsh out of the way, we got Nvidia out of the way, who cares?

Very first few seconds of the trading day. Nvidia struggling with that 227. Come on, baby.

once we clear Jackson Hole here, we'll have to see if Nvidia can actually hold on to 227 because it it really deserves to break out of this. It's getting so much uh spend from uh your uh you know SpaceX, your Google, whatever. uh the Neoclouds.

Neoclouds are relatively small in terms of how much they're spending compared to the big guys, but um you know, it really justifies a higher valuation, but the fact that it's lagging is disappointing and then makes you sort of wonder like, huh, are we in a bit of a profit take mode?

Are we in a bit of lack of cash mode? You know, what's what's going on over here? Why don't we have some more enthusiasm?

it's such a heavy weight of trying to get Nvidia over 227. I think one of the reasons we're having this almost schloggy behavior is because people are kind of like, you know, I don't know.

I'm skeptical of the bull case, right? Some of that hardware skepticism, I think, is indeed weighing on markets, at least in that hardware sector.

obviously if you do not have a 2227 I think it's 06 line drawn for Nvidia pretty critical. You can see we are trying to recover that.

If I go to the Frontier Labs, who are the ones spending on Nvidia like drunk sailors, if I go to them, I end up spending $50 for a million output tokens on Fable 5.

Okay, so with all that out of the way, what do we got over here on Nvidia? What the heck, man? Uh, still still can't hold a line again. Could be could be uh nervousness coming up to Jhole.

So, what about I just want to take a quick look at Nvidia. You're you definitely lost 227. We are going back for another test.

So we got Nvidia loses 227 again. Bad for hardware rally.

Uh hardware is a little bit more questionable depending on how Nvidia moves. but you really need Nvidia to break through this test here. So, we'll see how uh how this goes.

Look at that 227 rejection again on Nvidia. It can't freaking do it. It's a little baby. There's no money left to pump this puppy up. Come on. It's just a $5.4 trillion company. It can't be that hard.

double peak May 23, possibly Nvidia earnings around that time, right?

Hardware is having a hard time without Nvidia breaking out. So, you know that that Nvidia reject sucks. Just I suppose put it that way. Um, I'd really prefer to see a breakout on Nvidia and then you could say, "Hey, we've got a, you know, a rally set up for hardware like the 2.0 rally."

But, but there seems to be this lack of capital. It sucks.

Where is Nvidia? Ah, Nvidia still look at that now. Double bottoming potential here at 223.

Oh, yeah. Look at that. Q's just went thece went went red and Nvidia going red. uh even more so than it was before.

oh man, Nvidia keeps going down and so are the cues.

I mean we got we got hawked man. We got hawkked too. So it makes sense. Yeah. Nvidia sync rate. We got to add that soundboard back.

with what we now know from Nvidia, with what we've seen from some of the cyber stocks over the course of the past couple of days that have come out, specifically citing AI as a massive tailwind, just how much of that word craze is accurate and how much of that word boom is accurate?

And then we'll hear October earnings and they're probably going to be like Nvidia. They're going to be excellent and they'll be what we expected.

Yeah, and Nvidia is tanking, too. Let's put these at the top. QQQ. Hardware is just getting creamed.

Nvidia red flags. Hey, I made a video about Nvidia red flags. Did they copy my video?

The second quarter earnings report contains a few numbers that should give investors pause. Okay, let's see about it. Nvidia reported a 63% rise in accounts receivable. Well, I think if I remember correctly in their earnings call, they actually mentioned that they're like intentionally extending those time frames. Got to wait for OpenAI to get his money.

What is the other red flag junk they have here? This is Nvidia. Nvidia. Here we go. High. So, we got the receivables. Rise in accounts receivable. Hefty increase in the number of orders the company has filled but haven't been paid for yet.

Bank of America sees accounts receivable going to 71 billion to 113 billion to 147 billion. That would be a 100% increase over two years. Yeah. Yeah. Basically, you know, we're recognizing this revenue, but we're just putting into the receivable.

We're not actually getting the cash yet. That's actually interesting. Just how much is expected to balloon.

Five customers accounted for 70% of its accounts receivable. That's a obviously a default risk, right?

commitments. This is the circular financing commitments doubled from 119 to 179 in the second quarter. Analysts uh at Goldman Sachs say these commitments are substantial. 279 commitment from memory, data leases, equity investments, capex, drop in free cash flow.

Well, then the free cash flow is partly because of the accounts receivable, but then you also back out the investments that they're making into other companies, which you know, if you have to keep making investments into other companies, then that's sort of like reducing your free cash flow.

Oh, come on. And going back for the test, Nvidia is now down 4%.

That actually reduces the amount of the sucking available for Nvidia. Yeah, Huawei's got pretty decent chips. I was just uh doing a piece on that, too. But uh yeah, the the the thing with these other chips is they they're not they're not Nvidia levels. Uh but they're, you know, pretty good.

Oh, yeah. Soft Nvidia. Look at this. Oh, 4.25 now. Damn. Socks so cooked. Wonder how socks is doing. Socks. Ooh, socks is down three, which socks is going to be down nine then.

Socks to about 10. Yeah. Yeah. And then uh on the day chart, that Nvidia relief rally was very shortlived. It was only up 6% that day. I'm actually surprised. Wait, on the average it says 6%.

Let me check the unaver. Oh, worse. Five. Oof. Yeah, that has been a little quicker.

I don't imagine that with Nvidia going down right now, Iron's doing very well.

Uh what are we doing on Nvidia? Nvidia still it's holding on to about 4% here.