After a big run this year, Nvidia (NVDA) fell over 15% from its high and broke its 50-day SMA. On the face of it, a break below this “key” moving average seems like a short-term bearish signal. Such a view, however, would ignore the long term trend, which is the dominate force at work. The first job is to define the long-term trend because this provides perspective and sets the trading bias. Nvidia is clearly in a long-term uptrend because it is well above the rising 200-day SMA and it recorded a new high a month ago. During a long-term uptrend, declines are viewed as corrections that provide opportunities. The break below the 50-day SMA, therefore, is more of an opportunity than a threat. Our reports and videos this week suggest the same for QQQ. Corrections come in all shapes and sizes. We could get a short pullback, an extended…
