$NVDA has been one of the most favorable stocks for a long time. The spectacular run from April – June 2017 has been absolutely breathtaking. Now it’s over extended and it’s about to take a break! It doesn’t matter what the reasons are, the chart is telling us $NVDA is overextended and it is due for a 20-40% correction that will last 4-6 months.
The semiconductor index had a good performance 16% relative to SPY 6% in the last nighty days. AMD and NVDA are impressive leaders, while AMAT just beat the Semiconductor Index and the old name Intel lost money excluding dividend. AMD lost close to half billion dollars in 2016, but the market didn’t care. It only cared about the X factor of AMD’s sexy comeback story.
