Good Fundamental news but negative action. That is a telling fact

Luckyone

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NVDA reported better than expected earnings and the Jobs report came out better than expected and this morning the DOW was up over 600 points. Where is it now at 12:30 pm? The DOW is now down 300 points. That is a move down today of 900 points when positive fundamental news came out. Add to that the fact that yesterday Trump announced that Saudi Arabia would be investing $1 trillion dollars into the U.S. This is a bad sign.

When good news comes out and the reaction is negative, it is an unmistakable sign that the move up seen over the past 5 months is over. Add to that the established levels of pivotal support are being broken, you find that people are running away from the market, from the economy, and from all the positives that Trump has said are happening and will continue to happen.

 
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Investors are running away because all these numbers are rigged so his friends & family can pump & dump. Every US citizen would have to pay $135 a month for the next 30 years into Ai to support those companies valuations.

Home Depot 3rd earnings miss in a row shows the economy is in trouble. Every jobs number under Trump has been revised down & he keeps replacing BLS department heads for releasing bad numbers.
 
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Your NVIDIA story if FAKE NEWS!!!

The indexes broke down today in a "convincing" way. Not only did they break the pivotal intraweek supports, but did it with positive fundamental news that generated a reversal day of indicative consequence, all by itself.

In addition, I cannot see anything out there (fundamentally or chart-wise) that could turn this around.

As such, this is now officially a full-blown correction at the very least.

Chart-wise, there are no supports below in the DOW for another 1000 points, in the SPX for another 400 points and in the NAZ for another 2000 points. Drops down to those levels would mean a correction of 9% (DOW) to as much at 15% (NAZ).

Those figures are quite normal in a "full-blown" correction (and even more).
 
The insiders started the selling dumping massive numbers of shares.

Washington DC $8.5 Trillion Debt Hole forced the Fed to stop QT
 
Unemployment ticked up a bit. Likely had something to do with it.

 
According to Challenger, Gray & Christmas Inc.'s November 6, 2025 report, U.S. employers announced 153,074 job cuts in October, the highest total for that month since 2003. Key drivers included cost-cutting, AI adoption, and general market and economic conditions, with the technology sector being the hardest hit. In addition, seasonal retail hiring is expected to be the lowest since 2009.

October 2025 job cuts
  • Total cuts: 153,074, an 183% increase from September and a 175% increase from the previous year.
  • Record high: This is the highest number of job cuts for the month of October since 2003.
  • Top reasons:
    • Cost-cutting: 50,437 cuts
    • Artificial intelligence (AI): 31,039 cuts
    • Market and economic conditions: 21,104 cuts
    • Company/store closings: 16,739 cuts
  • Industry impact: The technology sector saw the highest number of cuts, with 33,281 announcements. Nonprofits also experienced a significant increase in year-to-date layoffs.
  • Year-to-date cuts: Through October, employers had announced 1,099,500 job cuts, a 65% increase compared to the same period in 2024.
  • Seasonal hiring: Seasonal retail hiring is projected to be the lowest since the 2009 recession, with retailers expected to add under 500,000 positions in the final quarter of 2025
 
NVDA reported better than expected earnings and the Jobs report came out better than expected and this morning the DOW was up over 600 points. Where is it now at 12:30 pm? The DOW is now down 300 points. That is a move down today of 900 points when positive fundamental news came out. Add to that the fact that yesterday Trump announced that Saudi Arabia would be investing $1 trillion dollars into the U.S. This is a bad sign.

When good news comes out and the reaction is negative, it is an unmistakable sign that the move up seen over the past 5 months is over. Add to that the established levels of pivotal support are being broken, you find that people are running away from the market, from the economy, and from all the positives that Trump has said are happening and will continue to happen.

Yeah. Exactly the same thing happened with PLTR a few days ago. One can be an anomaly, two (especially the two most dynamic companies) is a reason to be careful.

AI has been holding up the market and the economy for a while now, and now there's a growing bottleneck with power. The data center buildout can't continue until available power catches up. NVDA's CEO Jensen Huang bragged about insane demand for chips yesterday, and that's true, but all buildout stops when there's no power for them.

So if the market perceives this as the long-awaited AI crash, this could be the time. This is much like the Dot Com explosion in the 90s - sloppy and weird for a while, big players coming and going, and then things will settle down into a new normal.

No one knows. We'll see. I'd suggest that active investors have a good working knowledge of shorts, options and inverse ETFs.

:popcorn:
 
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