{"id":217953,"date":"2025-01-29T09:46:01","date_gmt":"2025-01-29T14:46:01","guid":{"rendered":"https:\/\/ibkrcampus.com\/campus\/?p=217953"},"modified":"2025-01-30T03:49:55","modified_gmt":"2025-01-30T08:49:55","slug":"chart-advisor-can-nvidia-hold-the-line","status":"publish","type":"post","link":"https:\/\/www.interactivebrokers.com\/campus\/traders-insight\/securities\/macro\/chart-advisor-can-nvidia-hold-the-line\/","title":{"rendered":"Chart Advisor: Can Nvidia Hold the Line?"},"content":{"rendered":"\n<p>By\u00a0<a href=\"https:\/\/links.investopedia.com\/u\/click?_t=36ba8fa8372241d58b3bfc06997a4332&amp;_m=2a6bb807ddf441d38f053dde141d6e52&amp;_e=8ItyupFGd5GK0zhv0uHS0plmwrfXg1XE9ODlzC9U3I-5umQULGSidKVbUP_kJJMs2dZapsb_9R8a6sXxfa-JUIDz3gajQJ6RWP7_co-CaDwE61TURzXvw_d-qSRvrMA5vMLG2HLrzGys4LguhuUGA1czwzQ9bziCovwdFi2cT5USHH9yAsVPKM4-rUnVhSymuKhI1hZ_F9sqR3OX4X0pAiZu6deallNBvr2D8-hQK0O944Nx6bkKXkg2lPPkyJbUnLKvTDUUSWzIA1zeiHUjWC4TzSeSzmtJyAOS7aB_BL49EsjuoF1KJh7ULqywjazMBjLt9BlgVQUsqlTOVmzf6QL1QgDD9Ia4ytM2Gy06nzt3dxopJ8WI0jfbu1m9xxAzc2VN1mZpPFD6p0KTErFV4D9XflpVMFcAWhhmDG1KuaEekNT8f6qyvjip5mJnORUvgS-DOuBoFlYW4KTj0RFqiThwp8_dF5xEAMbWCWXMIhQ%3D\" target=\"_blank\" rel=\"noreferrer noopener\">Todd Stankiewicz CMT, CFP, ChFC<\/a><\/p>\n\n\n\n<p><strong>1\/\u00a0The Market May be Addicted to Rate Cuts<\/strong><\/p>\n\n\n\n<p><strong>2\/ Can Nvidia Hold the Line?<\/strong><\/p>\n\n\n\n<p><strong>3\/\u00a0Owning Bitcoin &amp; Nvidia is Not Diversification<\/strong><\/p>\n\n\n\n<p><em>Investopedia is partnering with CMT Association on this newsletter. \u00a0The contents of this newsletter are for informational and educational purposes only, however, and do not constitute investing advice. The guest authors, which may sell research to investors, and may trade or hold positions in securities mentioned herein do not represent the views of CMT Association or Investopedia. Please consult a financial advisor for investment recommendations and services.<\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-1\">1\/<\/h2>\n\n\n\n<p><strong>The Market May be Addicted to Rate Cuts<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1100\" height=\"932\" data-src=\"https:\/\/www.interactivebrokers.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/01\/01291-1100x932.png\" alt=\"\" class=\"wp-image-217954 lazyload\" data-srcset=\"https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/01\/01291-1100x932.png 1100w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/01\/01291-700x593.png 700w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/01\/01291-300x254.png 300w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/01\/01291-768x651.png 768w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/01\/01291.png 1440w\" data-sizes=\"(max-width: 1100px) 100vw, 1100px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1100px; aspect-ratio: 1100\/932;\" \/><\/figure>\n\n\n\n<p>&nbsp;The tech market was shaken yesterday with the news of a potential new AI platform, sending shockwaves across the sector. NVIDIA bore the brunt of the reaction, plunging 17% in a single day, while the Nasdaq 100 index dropped over 3% collectively.<\/p>\n\n\n\n<p>Despite this turmoil, the market quickly shifted its focus to the Federal Reserve, betting on its potential intervention to calm volatility. Market participants are now pricing in an additional rate cut in 2025 during the October FOMC meeting. This shift in sentiment comes even as inflation remains persistently high and the labor market continues to show robust strength, both of which are core mandates of the Federal Reserve.<\/p>\n\n\n\n<p>Looking ahead, today\u2019s trading is likely to remain volatile as the FOMC is expected to hold rates steady. However, their forward guidance will take center stage. In the wake of yesterday\u2019s market moves, every word from the Fed will be scrutinized for clues about their policy path, underscoring the high stakes for market participants navigating this uncertainty.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-2\">2\/<\/h2>\n\n\n\n<p><strong>Can Nvidia Hold the Line?<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1100\" height=\"532\" data-src=\"https:\/\/www.interactivebrokers.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/01\/01292-1100x532.png\" alt=\"\" class=\"wp-image-217955 lazyload\" data-srcset=\"https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/01\/01292-1100x532.png 1100w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/01\/01292-700x338.png 700w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/01\/01292-300x145.png 300w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/01\/01292-768x371.png 768w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/01\/01292.png 1460w\" data-sizes=\"(max-width: 1100px) 100vw, 1100px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1100px; aspect-ratio: 1100\/532;\" \/><\/figure>\n\n\n\n<p>NVIDIA\u2019s sharp drop yesterday brought it down to test the lower Bollinger Band on the weekly chart, a critical support level that has acted as a &#8220;line in the sand&#8221; over the past five years. In both the spring of 2021 and the fall of 2023, NVIDIA managed to hold this level and subsequently recover to reach new highs. However, in the first half of 2022, this support failed, leading to a steep decline. NVIDIA\u2019s stock fell from a peak of $32.98 (split-adjusted) in November 2021 to a low of $11.23 (split-adjusted) in October 2022, a 66% drop.<\/p>\n\n\n\n<p>Currently, the lower Bollinger Band sits at $120.05, making it a crucial level to watch. If NVIDIA holds this support, it could signal that the risk is contained. However, a break below this level might indicate that the recent decline is part of a broader, more significant downtrend. Investors will be paying close attention to this price action as it unfolds.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-3\">3\/<\/h2>\n\n\n\n<p><strong>Owning Bitcoin &amp; Nvidia is Not Diversification<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1100\" height=\"783\" data-src=\"https:\/\/www.interactivebrokers.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/01\/01293-1100x783.png\" alt=\"\" class=\"wp-image-217956 lazyload\" data-srcset=\"https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/01\/01293-1100x783.png 1100w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/01\/01293-700x498.png 700w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/01\/01293-300x213.png 300w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/01\/01293-768x546.png 768w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/01\/01293.png 1414w\" data-sizes=\"(max-width: 1100px) 100vw, 1100px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1100px; aspect-ratio: 1100\/783;\" \/><\/figure>\n\n\n\n<p>The other day, I was talking to an investor who said they were diversifying their equity investments with Bitcoin. On the surface, that sounds like a good way to mix things up, but here\u2019s the catch: the correlation between Bitcoin and NVIDIA has been positive over the past decade. With a 0.545 correlation, these two tend to move in the same direction over time, not perfectly, but close enough to matter.<\/p>\n\n\n\n<p>Here\u2019s the kicker: NVIDIA already makes up a big chunk of many major equity indices. So, if you own ETFs, there\u2019s a good chance you\u2019re already exposed to it. Adding Bitcoin to the mix might not give you the diversification you\u2019re hoping for.<\/p>\n\n\n\n<p>If Bitcoin is your go-to for equity diversification, it\u2019s worth stepping back and looking at the bigger picture. Think about finding investments with lower correlations to truly spread out your risk and build a more balanced portfolio.<\/p>\n\n\n\n<p>Disclaimer: Advisory Services offered through Sykon Capital, LLC, a registered investment advisor with the U.S. Securities and Exchange Commission.\u00a0This material is intended for informational purposes only. It should not be construed as legal or tax advice and is not intended to replace the advice of a qualified attorney or tax advisor.\u00a0 The information contained in this presentation has been compiled from third party sources and is believed to be reliable as of the date of this report. Past performance is not indicative of future returns and diversification neither assures a profit nor guarantees against loss in a declining market. Investments involve risk and are not guaranteed.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>By\u00a0Todd Stankiewicz CMT, CFP, ChFC 1\/\u00a0The Market May be Addicted to Rate Cuts 2\/ Can Nvidia Hold the Line? 3\/\u00a0Owning Bitcoin &amp; Nvidia is Not Diversification Investopedia is partnering with CMT Association on this newsletter. \u00a0The contents of this newsletter are for informational and educational purposes only, however, and do not constitute investing advice. The [&hellip;]<\/p>\n","protected":false},"author":186,"featured_media":217957,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":true,"footnotes":""},"categories":[14,16727,18,6,8,9,22,23,26,3],"tags":[7124,2033,314,1385],"contributors-categories":[13686],"class_list":{"0":"post-217953","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-etfs","8":"category-etps","9":"category-macro","10":"category-north-america","11":"category-region","12":"category-securities","13":"category-stocks","14":"category-technical-analysis","15":"category-text-articles","16":"category-traders-insight","17":"tag-bollinger-band","18":"tag-btc","19":"tag-fomc","20":"tag-nvda","21":"contributors-categories-investopedia"},"pp_statuses_selecting_workflow":false,"pp_workflow_action":"current","pp_status_selection":"publish","acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.9 (Yoast SEO v27.5) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Chart Advisor: Can Nvidia Hold the Line? | Traders&#039; Insight<\/title>\n<meta name=\"description\" content=\"The tech market was shaken yesterday with the news of a potential new AI platform, sending shockwaves across the sector. 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