No. Punches. Pulled.
Hedgeye CEO Keith McCullough highlighted a critically important market development on The Macro Show this morning.
“Nvidia had what we call an ‘outside reversal’ yesterday,” McCullough explained. “NVDA shares were up +8% on the open. It gave back all its gains on massive volume by the close. It pancaked down to 0.1%. Up 8% to 0.1%. And they did everything they could to make sure that thing was up 10 basis points. They. You know there’s a ‘They’ right? They is a thing. They made sure that Nvidia has certain orders. They make sure that Nvidia looks green on a day that it should. But damnit did they have to use a lot of capital to do that yesterday!”
“It was a particularly important day. The prior closing all-time high in July was around $475. So this thing goes up from its prior closing high on big volume and every CNBC monkey is talking about it. But you close at $471. $471 is not $475. That’s called an ‘outside reversal where you try to shoot to new highs on big volume, on big news, and you fail.”
“The absolute worst thing will be if Nvidia closes down today after opening up.”
Bottom line? Keep your head up out there right now.
Click above to watch the full excerpt.
