Man Stares at Charts of AMZN & NVDA, Ignores Them, Buys

AMZN and NVDA were added on the March Tech tank job

The most obnoxious TAs want you to believe their charts are the be all, end all because after all, charts are the truth of what has happened up to any given moment, right? Right.

Welcome to another installment of the Men Who Stare at Charts (MWSAC).

But the truth of a stock chart is the truth of the past. Nobody outside of well marketed gurus and swamis can claim to know the future. A chart can give hints with things like divergences, momentum and support/resistance milestones, but when the man staring at a chart ascribes more to it than that he is seeing mystical things in his lines, squiggles and candles and he * badly wants you to see them too.

I am a man who stares at charts… A LOT. I love them actually. I need them. I often manage by them. But in the case of Amazon and Nvidia, I managed despite them. I bought both stocks on the March tech tank due to what I thought (as a macro manager, not a MWSAC) was an at least temporarily overdone long-term yield rise and associated rotation to ‘value’ over growth/tech.

AMZN was hanging like a rotten fruit below its 50 and 200 day moving averages when I bought it. Now the chart is repaired.

amazon stock

NVDA was bought for the above-noted reason and also the glimmers we had at the time in NFTRH about the wake up call issued by LRCX, AMAT and other Semi Equipment names, which I thought would spread out to the chip makers (fab and fabless alike). NVDA’s chart was a little better than AMZN’s, as it was below the SMA 50 but above the SMA 200. Now both are threatening new highs (after never having relinquished their dominant uptrends).

nvidia stock

Moral of the story? For crying out loud, take the MWSAC with a grain of salt and use the entirety of your brain and logic when investing.

* Yes of course, there are WWSAC too! But work with me here.

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