Hey, Ross here: Let’s look at what’s going on with the #1 stock everyone’s paying attention to today – Nvidia. |
This is how NVDA has moved for the past five days. Even accounting for yesterday’s nearly 7% recovery – the stock is still down 10% from its intraday peak last Thursday. That’s about $350 billion in market value wiped out in just a few days. Now, I’m not saying NVDA will crash. With the amount of attention the stock is getting, we may see buyers step in to buy the dip. But I also wouldn’t be surprised if the stock starts losing some of its dominance – and you shouldn’t be either. Plus, as I explain in the Insight of the Day, it might actually be a good thing. |
Sector rotations are what keep a bull market going. |
What most traders don’t understand is that in a long bull market, it’s unlikely for the same sector to maintain leadership the entire time. Sectors rotate leadership, and this rotation – just like healthy pullbacks – is necessary to keep a bull market going. The mistake most traders make is confusing a rotation for a rout. Which causes them to miss out on the opportunities that always come with a rotation. Sure, Nvidia may be falling – but other sectors are rising. And if you want to go after the leading stocks in these newly rising sectors… This is theproven chart pattern that will allow you to do so.
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