Nvidia (NVDA Stock): Tech stocks bound to disappoint? [Video]

Giles Coghlan LLB, Lth, MA Financial Source

The prospect of higher interest rates, the end of QE, and the start of QT have all hampered sentiment around tech stock. With all things digital finding plenty of buyers during Covid-19 induced lockdowns the deeper correction in tech stocks may continue. However, do some of the larger tech stocks names warrant buying on the dips?

Over the last 14 years, Nvidia has risen 12 times between January 18 and February 21. The largest return was in 2020 with an 18.61% profit and the largest fall was in 2008 with a -14.29% loss. 5.35% is the average return. Is Nvidia worth buying over the medium term or is a deeper correction in stocks still to come?

Major Trade Risks: The main risk to this seasonal pattern would be if the Fed are more hawkish and hike by 6 or 7 times this year rather than the expected 3 or 4.

Learn more about HYCM

Premium

You have reached your limit of 3 free articles for this month.

Start your subscription and get access to all our original articles.

Subscribe to Premium Sign In

Author

Giles Coghlan LLB, Lth, MA

Financial Source

Giles is the chief market analyst for Financial Source. His goal is to help you find simple, high-conviction fundamental trade opportunities. He has regular media presentations being featured in National and International Press.

AUD/USD stalls rebound above 0.7050 amid fresh Mideast tensions

AUD/USD stalls its rebound from almost two-month lows and treads water near 0.7050 in Asia on Monday, as the US Dollar pauses following Friday's upbeat US NFP-led blowout rally to a two-month high. However, renewed geopolitical tensions, along with surging bets on Fed rate hikes, continue to act as a tailwind for the USD, capping the higher-yielding Aussie.

USD/JPY holds higher ground toward 160.50 despite 'Yentervention' fears

USD/JPY holds higher ground toward 160.50 in Monday's Asian trading, despite intervention fears. Japan’s revised GDP print, which confirmed that the economy lost momentum in the first quarter, weighs on the Japanese Yen. Meanwhile, Friday's upbeat US NFP report and fresh Israel-Iran attacks favor the US Dollar bulls, underpinning the currency pair.

Gold seems vulnerable near $4,300 as geopolitics and Fed hike bets support USD

Gold attracts fresh sellers following a modest Asian session uptick to the $4,350-$4,355 area and touches its lowest level since March 23 on the first day of a new week. Renewed hostilities in the Gulf push Crude Oil prices higher, fanning inflationary concerns and bolstering bets for more hawkish central banks.

Dogecoin: Smart money flees DOGE, exposing a 12% downside risk

Dogecoin price hovers around $0.0850 at press time on Monday, keeping steady after a 5% rebound the previous day from the February 6 low at $0.08000. On-chain data show that large-wallet investors with 100 million to 1 billion DOGE have reduced their holdings to a five-month low, providing the downside pressure.

Week ahead – Fed countdown begins amid US inflation data and geopolitical risks

Fed Chair Warsh’s first meeting approaches as key US inflation data could reshape expectations. Oil prices remain elevated as US-Iran talks continue; tariffs also return to the spotlight. ECB is expected to hike; will it be a one-off move or is July live?

The US economy defies the rules: 100 days into the Oil shock and the recession signal is still missing

More than three months after the start of the Iran war and the resulting disruption to global energy markets, the US economy continues to display remarkable resilience. The conflict has triggered a sharp rise in Oil prices, reignited inflationary pressures and fueled widespread concerns about a potential economic slowdown.