NVDA price action contradicts strong fundamentals due to concerns over circular financing; technical strategy is to short at upper trendline or buy lower trendline with tight stop.

Um, let's turn our attention to Nvidia. Now, Nvidia, what's interesting here is remember it had good earnings. The stock had a great run and then this day on Friday was not what the bulls wanted to see.

Essentially, it gave back a majority of those gains. Today, it's trading up fractionally.

But again, for as good as those earnings were and the backlog and the, you know, the projections, what does this tell us that it gave back so much of those gains? Now, on a macro sense, what it tells us is that the markets are still very concerned about this circular financing, right?

Nvidia gives a company $2 billion. That company then turns around and says, "Hey, we'll buy $2 billion in chips."

And so again, yes, the earnings were great, but the market is telling you they don't necessarily believe that the projections, the guidance will be fully what it actually is projected to be by the company because they're saying that some of these companies won't come through. Some of these deals will fall apart.

Now, again, we'll have to watch and see, but it is a fascinating thing.

Now, on a technical basis, I have two major trend lines ascending. If we ever get up here, I short. If we get down here, you can buy it as long as it it's a major you keep your stop right underneath because if it breaks, and we know ups uh D or ascending trend lines tend to break eventually on multiple hits, then you have to be a little bit more concerned.

So again, you could buy this level, but but for me, I would keep a very tight stop underneath within a couple dollars. If it breaks, it's probably going to start a bigger move to the downside, maybe filling this gap, maybe touching this gap fill and pivot low uh down significantly.

I'm also keeping an eye on Nvidia as Nvidia continues to kind of act a little strange considering how golden those earnings and guidance were.