They’re only electrons. Passing blips. They give pleasure. They give hellish angst — what I suffered over the weekend.
My biggest love cratered 10% on Friday.
An explanation? I eyed the headlines:
+ Nvidia is Down 10%. Is This the Beginning of the End?
+ Nvidia drops 10% as investors see risk in Big Tech shares
+ Nvidia, AI Stocks Catch A Cold After Super Micro Computer (SMCI) Sneezes
+ Nvidia stock crash coincides with the release of “The Tortured Poets” album from Taylor Swift
In other words, the learned talking heads had no freakin’ clue why NVDA plummeted 10% in one day.
My friend (and Cramer) argued that parabolic moves up (like Nvidia has had) always come a-cropping.
It wasn’t going to $1200, like many street analysts predicted. It was going to $500.
One mature (i.e. old) fellow argued Nvidia was “pausing.”
Reality: Maybe a big Nvidia shareholder with a short fuse had opted to sell his gargantuan holdings and the quant funds had latched onto a predictable course south — until close of business last Friday.
What do I know about Nvidia?
+ Everybody and their uncle wants what they make, and more.
+ Nvidia is constrained by what it can pump out their door — not by the demand for its magnificent chips., which (to use Bezos’s term) is unconstrained.
+ I’m guessing all the new chip companies like Google, Amazon, Meta are making bargaining chips, more than real chips. You don’t get into Nvidia’s biz overnight.
Last time I sold on a Nvidia parabola, I was proved famously an idiot and had to buy back my entire position (and more) in following days at higher prices.
This time I didn’t sell.
The good news that this morning (Monday), despite all the conniptions and agitas of the last week and weekend, today I’m still up 68% on my Nvidia. Which, not surprisingly, is better than a slap in the belly with a cold fish.
I do have coping mechanisms:
+ Foremost, this Taylor Swift advice to all her young fans whose doomed romances have given them a heavy doze of Nvidia agita.
+ Then there’s tennis and afternoon naps.
I can’t not look at the electrons, except when I’m on the tennis court and striving for my parabolic down-the-line backhand.
Tonight Passover (a.k.a Pesach) begins
It’s a celebration of the Jews escaping the Egyptians. It’s best told in these cartoons.
That’s it for now. My Tesla short is up 13.3% and my bitcoin/ethereum holdings are up 36.9%.
Go figure.
See you tomorrow. — Harry Newton
