| | | Don Kaufman here. | Let's talk about Nvidia. You've heard me say it before, and I'll say it again—this stock is the bellwether for the broader market. If Nvidia sneezes, the S&P catches a cold. And today? Nvidia isn't sneezing—it's coughing up a lung. | Down over 7% as of midday, this is exactly what I was warning about a few hours ago. Let's break it down and keep it both educational and entertaining, Don-style. | | | | What's Happening with Nvidia? | You know those Blackwell chips everyone's been raving about? Well, it turns out Chinese buyers are skirting U.S. export controls to snag them. That's a big deal. | The Wall Street Journal dropped that bombshell late Sunday, and Nvidia is paying the price today. Combine this with tariff uncertainty, and what you've got is a perfect storm of sell-side activity. | Here's the thing—Nvidia isn't just a stock; it's a market sentiment barometer. | When Nvidia tanks, it sends ripples across the Nasdaq and into the S&P 500. It's like that first domino in a chain. And right now, that domino's wobbling hard. | | | | Breaking $120: The Signal We Didn't Want But Got Anyway | I said it earlier, and I'll say it again: $120 was the line in the sand for Nvidia. Once we broke that, it was game over for the stock—and potentially for the broader market. Why? Because Nvidia is the heavyweight champ of sentiment stocks. It's not just a tech darling; it's a market momentum driver. | Now that we're sitting at $115ish, this isn't just a warning sign—it's a full-blown signal that the selling pressure is accelerating. And with Nvidia leading the charge lower, the Nasdaq and S&P 500 are starting to feel the heat. | | | | How Nvidia's Breakdown Drags the Whole Market Down | Let's connect the dots. Nvidia's down 7%+, and guess what? The Nasdaq is off 1.5%, while the S&P 500 is down 1%. You think that's a coincidence? Think again. Nvidia's weight in the broader market, combined with its role as a bellwether for tech and AI, makes it a domino stock—when it falls, everything else starts tipping over too. | And here's the kicker: it's not just Nvidia. The market's already fragile after February's losses, and now we've got tariff uncertainty and soft economic data piling on. You don't need to be a genius to see where this is headed—it's all downside unless something changes fast. | | | | What Happens Next? | Now that Nvidia has blown through $120, the next key level to watch is $110. If we hit that, the selling could spiral into outright panic. Why? Because at that point, it's not just traders dumping Nvidia—it's algorithms, funds, and anyone else who uses key levels as stop-loss triggers. | And here's the part that should really make you sit up straight: if Nvidia keeps sliding, the S&P 500 will easily break lower from the 5911 level. Things could get ugly fast. | | | | For Traders: How to Play This | Let's get real for a second. If you're trading Nvidia—or even watching it—this is where the expected move framework becomes your best friend. Nvidia has blown through multiple expected moves in recent weeks, which means the options market has been dead wrong on its pricing. | That creates opportunities if you know how to spot them. | Here's the play: | Oversold Bounce (Maybe): If Nvidia stabilizes around $115 and buyers step in, you could see a quick bounce. But don't get greedy—this is a trader's market, not an investor's. Short Continuation: If Nvidia breaks $115 and heads for $110, it's time to let the shorts ride. Use tight stops and don't overstay your welcome, but understand that momentum is on your side.
| And if you're not trading Nvidia directly? Watch how this impacts the Nasdaq and S&P 500. The ripple effects are real, and they're showing up in everything from tech stocks to the financials. | | | | The Trap Door Is Wide Open | Nvidia is $115ish… | That's not just a number—it's a signal. A signal that the market is fragile, that sentiment is breaking down, and that further downside is likely. If you're still sitting on the sidelines, good—stay there until you see a clear opportunity. And if you're in the trenches trading? Keep your stops tight, your positions small, and your eyes on the prize. | This isn't just a Monday sell-off. This is the market telling us something loud and clear: volatility is alive and well, and Nvidia is leading the charge. | So buckle up, stay sharp, and watch those levels. The trap door is open—don't get caught falling through it. Game on. | To your success, | Don Kaufman | | | | Meet the X-FLIP Signal, the Breakthrough System Wall Street Doesn't Want You To Know About. | While most investors panic over market chaos like February's Nasdaq drop, institutional money quietly flows into opportunities most people can't see. | Last year, the X-FLIP signal identified a surge in utilities, delivering 1,185% returns in just 84 days. | With just 30 minutes a week, you can leverage this proven system to follow trillion-dollar money flows and turn market volatility into your advantage. | Click here to discover the power of the X-FLIP signal and start transforming your financial future today. | | |
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