Eoin's personal portfolio: stock market short opened
Nvidia represents the clearest play on the growth of both virtual reality and chips catering to artificial intelligence. The share formed a base between 2011 and 2012 and broke out in early 2014 to reassert demand dominance. It had been ranging with a mild upward bias until a year ago when it broke out once more. The acceleration that has taken place over the last six months has seen it become one of the best performers on the S&P500. With so much good news already priced in and a wide overextension relative to the trend mean, today’s downward dynamic suggests a peak of at least near-term significance. Downside follow through next week would increase potential for a reversion towards the mean.
I opened a short in the December contract selling at $59.70 including spread-bet dealing costs.