On May 22nd after the close, Nvidia reported blow out earnings and announced a 10:1 stock split. I said the stock should exceed $1000 in after hours trading and it did, but that’s not relevant. What was super important about the next day was that while Nvidia surged higher, the rest of the market gapped and crapped, meaning the stock market shot up at the open and then sold off the rest of the day to close at or near its low. While that looks nasty on a chart, it’s really just a sign of short-term exhaustion. 
And that’s exactly what happened.Since that emotional reversal, stocks have pulled back. It’s been broad but mild so far. A few stocks like Nvidia have continued higher, but I sense some tiring there as well. The Dow Industrials have been the worst while the NASDAQ 100 has been the strongest which comes as no surprise. Although we have seen some weakness, relative “risk on” remains in place. 
The bull market isn’t over. The rally isn’t over. Sentiment got ahead of itself and investors became too greedy and giddy too quickly.If I have time on Friday I want to comment on sentiment and the very expected pullback in the utes. Or is it youtes?On Monday we bought levered S&P 500. We sold JNK and some INPIX. On Tuesday we bought UAA and more BIPIX. We sold some SMPIX.More By This Author:Transports Lagging Badly Since 2021 – But Does It Matter?
Not Even Nvidia Could Prevent The Plunge
Nvidia – Poised To Hit $1000+ After Hours
