Nobody Wants Nvidia

Nvidia's momentum is fading as it trades below its 21-day moving average, potentially serving as a funding source for a broader but overextended semiconductor rally. The SOX index has reached an extreme 67% extension above its 200-day moving average, echoing dot-com bubble dynamics.

Key Takeaways

• 1.Nvidia is underperforming the broader semiconductor sector (SOX), potentially acting as a source of liquidity to fund other AI trades.
• 2.The Semiconductor Index (SOX) is extremely overextended, currently 67% above its 200-day moving average, a level only seen once before during the dot-com era.
• 3.Implied correlations have crashed as investors prioritize specific AI stock selection over broad market protection.

Table of Contents

• Elevated
• Printing into the close
• Soggy NVDA
• The main funder
• The hedge?
• Upside panic
• The correlations crash
• Semis bears got 20 days

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