Nvidia (NVDA) Bearish May Turn Bullish As Sales Revenues Remain On The Uptick
NVIDIA Hot Events Impact Summary
High Correlation Events:
Mixed Q2 results (revenue beat vs. data center miss) combined with CEO stock sales and market greed (Fear & Greed Index: 72.68) create short-term volatility.
Long-term AI leadership remains intact, but risks include valuation sensitivity and growth sustainability doubts.
Conclusion: High-correlation earnings events dominate, with short-term bearish pressure (34% bullish vs. 6% bearish sentiment) offset by structural AI demand.
Trading Highlights
High bearish hedging activity (High correlation): Extreme put/call ratios in options trading with 87% of notable transactions involving deep out-of-money puts (e.g. 75-170 strike vs current ~181.5 price), particularly those expiring September 2025 showing 400-700k% projected price changes. This indicates institutional investors are aggressively hedging against catastrophic downside risks.
Technical divergence signals (Medium correlation): While MACD shows narrowing bearish momentum (-1.58 on 8/27 vs -3.03 on 8/22) and RSI(6) rebounded from 31 to 63, the KDJ's J-value reaching 98.45 suggests overbought conditions - creating tension between short-term rebound signals and extreme options positioning.
Liquidity reversal pattern (Medium correlation): The $395M outflow on 8/27 erased 74% of the previous 4 days' net inflows, coinciding with heavy put buying in weekly options (8/29 expiry puts accounting for 62% of block trades). This shows momentum traders quickly unwinding positions after failed upside attempts.
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