Bad feeling, weak internals, confidence collapse, Nvidia breaking out | WAYT?

Josh Brown (0:14)

Yeah, here we are. You asked for the best, I brought you the very best.

We back, people. Ladies and gentlemen, I got short kid Matt here today. Matt, I feel like everybody left me this week except for you.

Matt Cerminaro (0:33)

Never leaving you. That's it. We're here. We got to pack up.

Josh Brown (0:36)

I got Michael Batnick on a flight to Austin right now. Shout out to Michael.

Nicole is in Paris living out her shopping fantasies.

Matt Cerminaro (0:49)

Right, right.

Josh Brown (0:51)

Ladies and gentlemen, we got John Grayson in the background controlling the show tonight. John's going to crush it for us because we have charts on charts on charts. For those of you listening on Spotify, two things. Number one, just click the video button and you can watch.

Or don't worry about it because whatever's on the screen that you can't see, we're going to make sure you understand the points that we're making. And tonight, we are going to bury you guys in insights.

It's going to be unbelievable. All right. So first things first, let's pay the bills. Huge thanks to our sponsor, Betterment Advisor Solutions. The longer you wait to break away, the longer someone else is building the relationship that should be yours. Betterment Advisor Solutions gets you independent faster because someday is too far away. Starting your own RIA can be a lot until you have the right partner behind you. Betterment pairs you with transition specialists who've done this before. So the move is simple, not stressful.

You get a tech staff built to scale with you so you won't quickly outgrow it. You get to offer an experience that a million customers already love and you get a full operating platform to run your practice on, making it easier to go from idea to independence fast. A trusted brand, platform built for growth and specialists by your side the whole time. That's how Betterment Advisor Solutions helps you break away better and build your firm today. Get started at betterment.com/advisors.

SPEAKER_3 (2:23)

Today's show is also brought to you by Janice Henderson. At Janice Henderson Investors, we believe working together is the way to work better. Like combining your portfolio plans and our in-depth strategy, your valued assets and our valuable insights, your mission and our vision. Always working in perfect harmony to find the right investment opportunities.

Janice Henderson Investors, Investing in a Brighter Future Together. Visit janicehenderson.com All right, I do want to say a couple of quick hellos in the chat.

Josh Brown (2:48)

I got Benjamin Lupu back. Chippons is here. He gave me the strong arm emoji, feeling that. Luis, JB Bro, where's Michael? I just told you, pay attention. He'll be back soon.

What is this, Josh? When are the braids coming out? No, dude, it's not a transplant. This is my literal hair. Thanks to Dr. Keith Scheinblum of Scheinblum Medical.

I'm actually, I'm growing this. Biff Gribbles is here, KPS Fred says, can't wait till Josh has a man bun. It's coming, my friend. Any day now. All right. All right. So chart, let's start here.

Nvidia looks like it wants to, I should, let me phrase this. Let me phrase this correctly. Nvidia looks like it wants to break out. A couple of things struck me about the recent trading and activity in Nvidia. Let's just do the technical chart. Let's jump right to that.

So I'm just going to narrate what I see here. This is a stock that had a massive run up in May, when all of its customers, the hyperscalers were reporting not only earnings, but forward guidance and their capex plans. And basically, they ratified what we all already know, which is that not only are they spending this coming quarter and for the rest of the year, but as far as the eye can see, because the investments they've already made demand that they continue to spend. And we've talked at length about replacement cycles and you build the data center, 50% of the expense is the chips.

Nvidia, although there are other chips available for data centers, there are other components, there are ASICs, there are CPUs. The GPU clusters are still going to be the workhorses for the data centers for as far as the eye can see. And back to the chart. So basically, it ran up in May as those reports were coming out. And then we sort of had like, I think, a pretty orderly pullback to the 200-day moving average, which at that time was 199, 200, bounced off of that level twice. Came right back into the 200s. And then it's been biding its time, pretty much consolidating below that 235 breakout level. Today, the stock closed around 228 And the longer it knocks on that 230, 235 breakout level, the longer that testing process takes place, the more powerful, I think, the eventual breakout would be.