| Now, Huang is nowhere near the quixotic firebrand that Musk has been throughout his career, but NVDA’s stranglehold over the tech sector deserves to be studied.
Today, the Nasdaq is down in advance of NVDA’s Wednesday earnings call.
And that same earnings call is pretty inarguably the biggest market news event of the week.
That is an unbelievable amount of influence over the markets concentrated in the hands of one company.
And I don’t mean to sound too conspiratorial. NVDA didn’t ask for this, and I’m sure Huang doesn’t really want to move the market beyond hoping NVDA stock goes up in value. But it’s incredible to watch.
And it’s a good reminder to us as traders that the markets are not really rational. They move suddenly and for unpredictable reasons, usually for reasons that we can’t really trace, even if a headline on The Street says “It’s clearly because of such-and-such.”
As traders that can seem really frustrating, but it actually should come as a relief.
Because we shouldn’t waste time trying to predict the markets. Predicting the markets is gambling, and gambling is a good way to lose a lot of money really fast.
Instead, we should be focused on reading and reacting to what the markets give us and taking advantage of the things we can understand.
That’s why I’m so thankful for our ProsperityPub team and their expertise.
May you have an incredible Monday and may the markets, however irrational, treat you kindly this week…
To your prosperity,
Stephen Ground
P.S.: Did you know that the term seesaw is an Anglicization of the French term ci-ça, which means “this-that?” Now you do. Add that to your useless information jar. Happy Monday. | | | | |
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