Semiconductors Leading
Semiconductors were the story of the day yesterday and the trade doesn’t look like it’s over.
Nvidia’s earnings caused semiconductor stocks to rally , but the difficult decision is choosing the right vehicle to trade.
This indicator will help you identify that.
NVDA vs. SMCI
The two leaders in the semiconductor space throughout this recent run have been NVDA and SMCI. Therefore many have questioned which they should be putting their money into for short term trades to maximize gains.
Looking at how stocks perform at 3:50, which is market on close orders (MOC) is telling. This is the last chance institutions get to execute their orders, so the performance during this time is indicative of where money is flowing.
Let’s look at NVDA vs. SMCI yesterday (including both MOC and after hours):
This is glaring. This signals to us that money is flowing to NVDA over SMCI (and other semiconductor names).
I walk through this in-depth in the 5 minute clip below:
Great reads as always