Will the Desire to Chase Nvidia Remain After the Stock Split?
The front-running of Nvidia in front of its 10-for-1 split has excited many investors.
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After some frothy action on Wednesday, the market traded mixed with a negative bias on Thursday. The front-running of Nvidia NVDA in front of its stock split cooled off, and the Nasdaq 100 QQQ traded around flat.
The Russell 2000 IWM lagged with a loss of about 0.8% despite some renewed meme action in GameStop GME, AMC Entertainment AMC, Koss KOSS, and several other names. However, outside of a handful of meme stocks, there was little speculative action.
Market players were probably looking ahead to the May jobs report, which will be released on Friday morning at 8.30 a.m. ET. Bonds have been signaling a potentially weak report, but investors seem a bit confused over whether a slowing economy really is great news, even if it does indicate slowing inflation.
There was quite a bit of poor action on my screens, but it looked more like disinterest and a lack of buying interest than an oversupply of sellers. The biggest problem I see right now is the need for additional catalysts to keep things running. The Nvidia action excited folks, but once the split is done, is there going to be the same desire to chase it?
We don’t have any earnings reports to liven things up, and the economic news seems to be causing some confusion as views about inflation and economic slowing shift.
I’d like to put more money into working and riding an uptrend, but it doesn’t look promising at the moment. Have a good evening. I’ll see you Friday.
At the time of publication, Rev Shark had no positions in any securities mentioned.
