Tesla vs. Nvidia: The Stock Market Fight of the Century

Date: 2024-12-19

Understanding the dynamic stock market can be a convoluted endeavor, especially when evaluating prominent players like Tesla and Nvidia. As observed lately, these two giants are not only compelling in their innovations but also represent significant metrics in the stock market’s health. This analysis dives deep into the comparative performance of Tesla and Nvidia, reflecting on recent fluctuations, to deduce their investment potential and market impacts.

Overview of Current Market Trends

The stock market has shown exceptional volatility, with stocks like Tesla and Nvidia making headlines for their erratic price movements. Especially after significant political events, such as elections, market dynamics have tended to sway unpredictably. Nvidia saw a dip by about 3%, an unexpected turn given its past performance momentum. Meanwhile, Tesla’s stocks have surged by 38% in the same period, a significant rise attributed to various market factors, including speculative trading and strategic company decisions.

Tesla’s Market Dynamics

Tesla, a major player in electric vehicles and clean energy, has exhibited an impressive climb in stock prices. A specific analysis from market experts indicates that Tesla’s stock maneuvered through what is known as a ‘climactic’ phase where it tends to grind higher gradually before making a sharp upward movement. Tesla’s stock resilience and its tendency to peak sharply post a gradual climb is a pattern familiar to seasoned traders but still poses a challenge in predicting its peak. This makes it trickier for fresh entrants to invest confidently as the timing for entry and exit requires precise strategizing to avoid losses.

Trading Patterns and Predictions

Expert traders suggest that Tesla might still have a long way to go, possibly reaching the $1,000 mark in the future. However, the stock currently appears overbought, making it a risky entry point for new investors. The strategy discussed focuses primarily on trailing stop-loss adjustments to safeguard investments from sudden downturns, allowing traders to lock in profits while still betting on potential upswings.

Nvidia’s Comparative Analysis

On the other side, Nvidia, known for its powerful GPUs and more recently for its strides in AI technology, has shown some degree of underperformance compared to Tesla in the same period. This downturn might be attributed to market corrections or possibly sector rotations, where investors shift their investments to different industries or stocks that have been performing under par.

Investment Strategies and Market Movements

Despite the recent poor performance, Nvidia still holds promise according to technical analysts. The stock displays a characteristic called a ‘daily downtrend and weekly uptrend,’ a complex but common scenario where different time frame charts show conflicting trends. This indicates potential for Nvidia if the market conditions stabilize and start reflecting the positive attributes seen on the longer timeframe charts.

Final Thoughts: Market Sentiments and Future Projections

Understanding the intricate movements of Tesla and Nvidia provides not just a viewpoint into these companies but also reflects broader market sentiments. Both stocks, despite their distinct pathways, offer valuable insights into market trends, investor behavior, strategic trading adjustments, and future expectations. Investors and traders alike should maintain a vigilant, well-informed approach, analyzing both short-term and long-term charts to align their strategies with actual market performance.

In conclusion, while Tesla and Nvidia continue their battle of supremacy in the stock market, each offers unique challenges and opportunities to traders and investors. With careful analysis and strategic planning, one can navigate through these turbulent but potentially profitable waters.

Watch this video below for more info:

Tesla vs. Nvidia: The Stock Market Fight of the Century



2024-12-19 05:36:25
Nvidia stock has been CLOBBERED. While Tesla’s flown into the stratosphere thanks to the raging “Trump Trade.”

Sami Abusaad, JR Romero, and Derrick Oldensmith reveal which market leader will win the battle for Mag7 supremacy.

Disclosures: https://www.t3live.com/disclosures/

Video transcript:
[Music] welcome everybody the brain trust is back Sammy abuad is done serving his two we suspension for Unnecessary Roughness so we are going to figure out what’s going on in the market everything is upside down Invidia nvidia’s been down Tesla’s been up like crazy so of course we have to bring in the boys to figure out what’s going on in this wacky insane frothy Market where there’s like 10 million stocks up like 40% this month and most of them are garbage we’ve never even heard of but um obviously the big topic Tesla Nvidia um you know nvidia’s like 89% since the election Nvidia is actually down 3% something which you know we didn’t think we’d ever see Teslas up 38% this month so Sammy I I I will start with you so long time ago um you rudely interrupted me and called the bottom on Tesla at like 140 and then over the summer you predicted Tesla 400 which I thought was a little bit insane what do you think of Tesla up here so Tesla remember that those 500 shares that I took uh not even was it has it been a month like a month ago they’re up 117 today as of today 117,000 I was gonna Trail Half Tesla under 457 no my exact Trail in the system is 45689 was going to Trail Half because it’s it’s getting a little climactic for sure but that’s what Tesla does is once it gets going it always like grinds up up up up up up and then eventually shoots up so that’s what it does I’m I’m used to it I’ve been trading it for a long time so I’m not surprised honestly that it it had that big move up I I never thought about even trailing it until yesterday’s bar until that reversal bar which if we had taken it out the low of that bar yesterday’s low which which is like 457 so my trail was going to be slightly under it h then I would have trailed out of half the position but um but no we’re not taking it out so I’ll just continue to you know bring my trail up actually yesterday was the very first time I brought it up um so but I’ll keep my trail under 457 for now for half the position and who knows I think it will at some point top out out come back in but this is just the start maybe of that Trump trade for Tesla So eventually who knows it could go to a thousand it could really no one knows for sure so I think right now it’s way too late to to get in of course maybe trim some you know like bar by bar on the daily chart I’m keep I’m not gonna go bar by bar quite yet like not going to bring it up to today’s low going to keep it under yesterday’s low for half but eventually I think it might still has you know a lot more to come we’ll see okay all right so so Jr you and I we’ve I Jr I believe you also threw out Tesla 400 um at some point with me um do you think do you think the Trump trade especi I guess with Tesla specifically is going too far too soon I mean two weeks ago we threw out Tesla 500 and you know you printed 488 today it doesn’t have to make sense you know that that’s what the chart’s telling you okay yeah Tesla does it I mean as a company it never seems to make sense Sammy sorry I see I love what Jr just said I love it it’s the absolute truth it does not need to make sense to you what what you meaning it doesn’t need the market doesn’t owe us an explanation I I read the quote one time about the universe the universe doesn’t need doesn’t need to make sense to you or doesn’t doesn’t owe you an explanation or something the same with with Tesla all we do is we see what it’s what’s going on with the price action and we trade it we take advantage of it doesn’t need to make sense to you that’s what I believe at least when it comes to trading sorry go back no it’s I totally agree I have a little sticky P posted on the right side of my monitor Richard wof quote the tape is the Tyrant if the tape says we’re going higher here don’t fight the tape you know okay I I want to bring Derek into this so Derek is a known Tesla hater and I can see he’s um he short the he short the stock here so Derek why bother walking this Highwire in particular so so look on dece for on December 5th we called out a Tesla long for the 360 wedge breakout 360 now we’re at like a couple weeks later $484 right now as we’re having conversation that was a phenomenal long and even though I have certainly been a Tesla hater at times in the past I’m a chartist and that was a beautiful beautiful pattern for that breakup through through 360 at 483 here I think Sammy said the right word it’s getting a little bit climactic this move has been so fast in such a short period of time that you know guess what I’m back on the other side of the trade you know I’m coming in up here and I am shorting it and I’m I’m shorting it some aggressively obviously have to be a little bit careful because this thing could continue a momentum squeeze it doesn’t stop till 500 or 520 but it it’s finally at this point here this thing hasn’t even touched zma on the daily chart almost the entire month it’s getting crazy and it’s just totally going parabolic so I love Sam’s move on his long he he he’s that’s the stressfree money he’s like hey I’m long it’s going up I’m making a lot of money you know I’m going to Trail my stop I’m going to make money no matter what but if it wants to keep going to 520 I’ll just make even more money I mean that’s a stressfree money that’s the way to do it I love it uh for me I I woke up this morning and I was like I want as much stress as possible so let me come in and short Tesla and short some Quantum Computing names and uh try to not pull my hair out okay now I I’ll just point out so Tesla has if you guys can see on the screen the highest RSI of any stock in the q’s or the S&P 500 I don’t know if that means anything to you okay so let’s talk Nvidia so we have um Lisa sue a c the a the CEO of AMD I don’t know if this is officially heard but it might be say in Invidia media and asking if Jr Got The Pick of her on the beach the one in the pink bikini very inappropriate okay so Jr at um 1:32 a couple it was either last week or the week before you called Nvidia long um and you know it seems like it’s finally having a good day today after you know big underperformance over the last month uh do you still you still like Nvidia yeah let me share my chart here so uh yesterday A lot of people were having a what I call uh Head and Shoulders hysteria okay uh people uh love to spot head and shoulders and and just Embrace a short trade and you know I I I I just kindly pointed out what an orderly orderly retracement you had here into anchored vwap off the pivot lows and the fact that uh this was uh for me an obvious bear trap that was going to cause uh as much Possible Pain on shorts as possible before it goes back to its value area which is exactly what it’s doing today so we broke a regression channel on the 15minute chart here uh and we’re now uh back you know retracing back into nvidia’s value area and trading range so you know it’s a very very difficult uh and Tall order to be shorting Nvidia off that 129 break as you can see technically and I believe it’s going to retrace all the way back to 145 okay 145 you’re heard here okay uh Sammy how about you what do you think of Nvidia up here so Nvidia is a classic case of daily downtrend and weekly uptrend so so you you’re so normally when the shorter time frame is bearish and the longer time frame is bullish normally you want to wait for the shorter time frame to fail on the way down or to bottom so you can play the longer time frame long if you look at the weekly chart Nvidia is actually as JR mentioned is in an orderly pullback the daily kind of curled and rolled over whoa is that Jr oh I’m sorry I’m gonna mute myself but uh so the daily was U rolled over a little bit but the weekly now I think might have bottomed by the way Jr last week what no two weeks ago also called the bottom on Nidia on the intraday like totally the Bottom Live on the mic we were on the we were doing this episode I mean the live and you called it exactly you were right on the money I was wrong about it I thought it was still lower so that was perfect I also want to go back to what Jr said I mean not Jr Derek said he he called it he called Tesla long and now he’s looking at playing it short that tells you something this guy’s got no attachment to the to the to the position he’s got no attachment to oh I hate Tesla let me play it always short no while it was bullish called it long now that it’s going a little climactic looking to play it short that’s wonderful that’s how you want to be if you’re a technician a chartist no attachment to whatever you believe about the company their cars suck or their cars are great their CEO great who cares what you care about is the chart one last thing I did look up that quote that I told you that I told you about and it says the universe has no obligation to make sense to you so the UN and the same with with with with stocks the the concept doesn’t have to mix has the company has no obligation to make sense to you what I need to make sense for myself is is the chart that’s what needs to make sense to me that’s it yeah it almost it almost seems like Buddhism it is the ideal trading philosophy I mean is it makes sense as a general operating system for life not attachment to to all these external things but it it definitely seems like it would factor into trading so we will get into um n and Freud and the Buddha after the new year okay uh Derek how about you I know you’re you’re quite active in a lot of these AI names especially the High Flyers uh how do you feel about Nvidia so I I just covered some Tesla just so you know um uh you know I’m kind of staying away from Nidia right now I I don’t like so we had a great trade a couple weeks ago that we’re just recapping that long that was back on November 27th we got a great bounce off that to 146 half or so um I don’t like the relative weakness that this thing has shown the the last like I don’t know week or so and to me um I just got very mixed like feelings on my my thought process on Nvidia because I think that the cues need to pull back but what I don’t know is if the q’s pull back if Nvidia actually goes up or if Nidia goes down if the q’s pull back in theory you would think that that Nvidia goes down but we’re in this like wild dispersion market right now where it’s like if one thing goes down something else goes up if something else goes down something else goes up uh so it wouldn’t surprise me at all if all of a sudden you see like the real High Flyers like Tesla Apple Amazon that have been super strong pull back because I think the that the cues two days ago are starting to get a little extreme on the upside but what does that mean for NVIDIA is that a Nvidia bounce when that happens or does Nvidia sell also because of the cues so for me uh I I just don’t have a good feel for it right here right now um so I’m taking a step back back from it I do have a very small AMD long position but I I don’t I don’t have a lot of conviction in that one either to to be honest okay all right okay so big news today obviously is um the is the the fed you know markets are up huge this year um you know the cues have been leading in December um so Derek I’ll let’s go right right back to you um do you have any feelings about the market overall heading into the fed this afternoon and do you think there’s something in particular the market wants to hear from the Fed so this market right now is historic actually what’s going on what’s going on right now in this market is unprecedented where breath has been has been down so the average stock in the S&P has been down for 12 trading sessions in a row that ties the the record going back I’m not sure how how far but that that ties a record on a pretty far look back so you have 12 days in a row where the average stock has gone down but the S&P is at highs every other situation in history where there’s been uh negative breath in the market for seven plus days the market has been down and the only other time when we were down 12 days in a row uh like this the S&P was off 16% yet here we are with this type of breath and the and the market sitting at alltime highs The Q’s are at all at alltime highs um there is very very little leadership in in this market if you compare even a chart of like the equal weighted S&P compared to the market cap related S&P we are in a very very unusual Market this has never happened before in history and and it’s kind of crazy uh we got the FED at two o’clock today it’s going to be a 25 basis point cut people are expecting he’s going to be a little bit hawkish with his with his language around that um how that impacts the market I don’t I don’t fully know but the biggest thing is it could be a catalyst that causes this wild rubber band that’s super stretched right now to to revert a little bit like let the average stock catch up a little bit to these leaders or bring those leaders back down a little bit to how the average stock has been performing which way that goes your guess is as good as mine yeah I I do think the breath topic is interesting because I can see for the the like the cues are up 5 perc this month but over half of Q components are down I mean Apple’s doing a lot of heavy lifting the market caps There is almost up to to four trillion um so Jr how about you are you do you have any expectations for what happens with the FED today to Nvidia real quick I just want to highlight something for of course we have a lot of people trading this so what here here’s what I see that’s happening with Nvidia okay so we had this big ascending triangle on the 4our time frame right you finally broke through value and created a very strong point of control around 140 okay 142 I remember Derek was watching that level carefully on the last pullback and we you we have a top of Valley around 145 and what we saw today was a bit of a ShakeOut a little bit of a spring action there and Nvidia trying try Harding their back into this this General value area we have mixed signals and this is why I’m just forcing what Derek said it’s really important we have a Distributive up thrust here okay and then we had a two-wave corrective and a ShakeOut okay it’s not clear in terms of pathing whether we’re going to have a two-wave corrective back to the top of value and uh a back test into our most liquid area around uh 140 that would give us kind of an inverse Head and Shoulders re accumulative schematic and potentially a measured move off this leg one into leg two into the 165 handle if we fail here however okay if we start to fail here and we fail point of control okay you have a potential measured move lower much lower into like the6 handle where where you finally meet some some serious demand so uh it’s a very uncertain chart at this point I do think we inverse Head and Shoulder out retest point of control and go higher but uh we’re in a very fragile time in the market uh and you know I’m going to segue into the fomc today we are getting a a sumary of economic projections and if we end up getting a dog plot that uh that uh sort of back talks what they were talking about earlier with the with the ray Cuts I think the Market’s going to pull in I don’t think it’s going to like that one bit and we could potentially see a a more serious and highly Ben official pullback in the NASDAQ okay all right uh Samy um on to you so Sammy you’ve been pretty um relentlessly bullish this year I think you know I I I’ve noticed this a lot of a lot of times Sam’s like it’s it’s sloppy but it still looks good so um are we still sloppy and looking good Sammy yeah so I think if we look at the Spy the S&P 500 you know it doesn’t look lower at all I mean the qes is a bit extended which means as Derek said we might see um money rotation or sector rotation coming out the tech stocks like Tesla whatever and into into other companies but if you look at the S&P 500 is just a pure grind up and I never bet against that kind of grind I just never do iwm is back to by the way being the iwm of old which is no longer participating with the with the broader market so the iwm has been has been tough you know fig to figure out when it’s going to bounce if it’s going to bounce so the IDM is a different story but again if we do get a pullback I think it’ll be shortlived if we get a pullback because I would never bet against this kind of uptrend that we have right now on the daily chart of the S&P 500 so that’s what I think maybe we get a pullback maybe not it’s always almost always best to bet with the to go with the trend not against it unless you have very a very clear case why you should go against the trend I’ll give you you know an example how many of you how many of us okay over the last couple of years thought this is the top in the market or this we might get a pullback and look at the market look what what it’s done the last couple years I mean that the it’s just straight up up up up okay tops out for a day or two and then goes back up tops out for a day and goes back up so the big money is not really made by predicting by timing the market perfectly that’s small money the big money is riding the bigger wave riding the trend and that’s why I I you know I don’t try to even pick the top unless I have a climactic move unless the market or the stock goes vertical then yes an accelerated move that’s overbought very extended sure I will try I’ll give it a shot okay like msdr couple weeks ago vertical let’s give it a shot but as we’re as long as we’re grinding as Derek said might even just have sector rotation money coming out of one sector into another sector I don’t think we’ll get much follow through to the downside if we get a pullback at all that’s a lot of words but hopefully it makes sense okay all right guys so we are gonna be closing out soon but we need some ideas and since sami’s been he’s been on suspension uh we’ll start with you Sammy Sammy are there any ideas left what do you think Mike are you really talking to me or talking to somebody else come on man it’s it’s bound to happen one day sami’s going to run out of ideas I will be there to support him but it’s gonna happen eventually it actually happened yesterday it’s not that I ran out of ideas I said in the in the newsletter that here’s some ideas for you to consider but nothing official today that was yesterday because I thought the market might actually come in a little bit and we we have like 50 different positions I’m gonna I’m gonna present to show you my ideas real quick it’ll take me just one second here and and I’ll fix the chart obviously these are different watches uh all right so here we go so okay should I create a new list here so let me um one second sorry about that uh just uh let’s see new personal list there it is that’s what I wanted and then done let’s just call let’s just do that and then do a copy and paste so you guys have the list here okay paste that’s tc2000 um and that’s my list but now I know it doesn’t look very pretty so I’ll make it look pretty in just five seconds here okay so this is what I like at the moment that’s not you know too far gone oh is it showing even yeah it’s just the the text is a little small we can see it but the text is a little small all right all right and I’ll make it better just give me one second I should have done this before um sorry about that here we go there it is so now it should be better I think okay so this is what I like as of right now so I like the upwork and the reason why I like it now really that’s where it should have been played so it’s late right now that’s where it should have been played but the reason why I like it is because of that trusted pattern it’s the transition a on the month so I like upw work long hopefully next week but it actually triggered should have triggered today but I’m watching it I like the dollar stores Long especially the five it triggered actually two days ago but today it’s confirming so if you look at Five D DG DTR I like them all long with again five being the best jo be triggered in the newsletter today I think it’ll take a while before it goes much higher because it’s gotten it’s gotten a little bit sloppy but if you look at the Joby looks higher to 11 it triggered at at 8:31 so you’re not too late here on the Joby if you want to join in docks docs we played it as an earning play over here and then I I sold it did a buy set up here didn’t do it and now it’s looking okay again as a swing trade in this case what was the docks doing what how did it bottom it’s that nice transition a on the on the monthly chart okay grind has a daily buy set up it’s been grinding up it’s been really bullish has a I’m sorry not a daily by a daily one two three but not tomorrow not today tomorrow I like it higher over the highs stop under the red bars low this is just a swing trade not a long-term trade here’s a longer term trade if you want the Oka which I did it as an earnings play gapped up pulled in and now it looks higher to me to about 9950 maybe more maybe it’s a longer term play it has a transition on The Daily and the monthly I’m in the zoom we took half profit on the zoom over here on the before the earnings because it didn’t look good on earnings it gap down it’s been basing basing basing I think the zoom is going to start to move back up I’m in it I have 500 shares so and I had a thousand and why do I like the Zoom you guessed it it’s that same pattern on the monthly it’s not as good as twio twio is much better but twio is too late now to get in it okay so that’s the the zoom the docu also the docu we’re in it from I don’t know what the what the average price is but I think it starts to move back up again docu Picture Perfect transition on the monthly okay so that’s the docu like it higher on this daily bicep don’t love it but I like it guess what I’m liking the djt long over uh whatever the high is here so this is 3866 that’s 3880 let’s call it 39 I’m liking the the DJ at higher to 45 this bar is high most of these are swing trades not long-term trades here’s a long-term trade for you it’s Roku over 8550 I think so just over this part that’s 8440 tell you the truth so 8450 and then it’s a nice monthly transition a on the Roku already in it but I’m looking to add to it I issued an ad alert today in the newsletter peleton I didn’t think it would work so I passed on it maybe my bias I didn’t think it would work boom nice move it’s been basing so maybe next week higher over here stop under the base sorry I’m almost done rblx is a weekly 123 looks good it’s a little late but looks good Cipher I think needs some time but it’s also basing on the daily chart so above the base stop under it as a longer term play and you guessed it the China stocks might be ready to go back up so long on the yen over yesterday’s high stop under the day before so that’s 25 2770 would be the Stop and the entry would be over 2920 it’s not just the Yen there’s also the cweb same pattern JD is even better there’s the FV there’s the WB those are all China stocks that I like okay and there’s more there’s plenty more but those are some of the ones that I like of course baba but it’s not as good as JD and then the last but not least is Weight Watchers don’t love it you know it’s not like I’m trying to lose more weight but you know it might be also in the process of bottoming on the Weight Watchers nice weekly monthly is not as good so that’s kind of what I like at the moment oh one last thing mu is reporting earnings I’m looking to play it long on on on earnings it’s at resistance that’s what I hate about it but it looks pretty good on the monthly and it looks really good on the weekly as well hopefully it looks good between now and the close and will I’m looking to play it long on earnings and that is it for me okay I just want to say I I love that Sammy is bullish on djt and grinder at the same time I don’t know why I feel like those two go together just beautifully no attachment to the to the underlying company that’s why I don’t care what the company does or doesn’t do I just like the chart if I like the chart I’m all for it okay cool okay all right uh Derek on to you um Derek you need to mute yourself um Derek I know you like Baba are you are you so are you also big on this China trade yeah I I just covered more more Tesla here they might try to support this 478 a little bit but if we start holding below this 478 I think um that might be it it might have been that might have been the one last Shak oroo on the upside to get everybody out of their shorts let’s see what happens here I I’ve got some but I just I just uh I just booked a little bit more I just covered a little bit more um just trading really rapidly while listening to Sam’s Brilliance at the same time um what what am I talking about you ask me what I like or you ask me about China I like China um I like China a lot uh you know I I got the move in the end that I was looking for with that big gap up and I fully liquidated it I haven’t gotten back in I still have baba and JD on um I’m I’m a little bit concerned that I like I like the Bas but I’m a little bit concerned that this becomes more of a January play than a December play um there’s not a lot of places in this market for people to do tax lost Harvest harvesting and I think that China might be one of those places and I think that that’s creating a little additional weight on some of these stocks otherwise I think they would already even be higher at this point so I I’ve got positions in Baba and JD that that I’m managing uh watching it closely if I see something I I’ll get bigger but I I’m kind of looking to wait a little bit more on on January again to to Really size back up in in the China space okay and Jr we shall finish with you uh you know you like Nvidia here anything else you like Jr’s muted I’ll M yeah I just want to come clean I think the only reason Derek and I are continuing to show up to this thing is because of the uh Sammy watch list so Sammy thank you you really are a value ad sir thank you thank you uh so i’ I’ve been watching Roku waiting for continuation let me uh hold on a second uh so I’ve been watching Roku waiting for continuation I think uh so this looks pretty good you have a inside bar breakout the 3674 a beautiful monthly base uh you had a bunch of triggers already you could have taken it already uh but I think I think it still got more upside uh TSM uh it’s a beautiful base uh on the daily and the weekly I think it goes higher uh watching that for sure I think the Industrials are set to bounce uh one of my Traders tdv uh pointed out this deer yesterday I think one more week and you get a really nice buy setup off the weekly uh and I think uh we may see start to see some rotations maybe into value um you know in the next couple of weeks this Market needs a pullback it’s getting frothy we’ve you know I keep talking about uh Market breath in in my room every day and it’s extremely poor Traders are sick of me talking about it but it’s a real thing and I think that uh while I’m really bullish on the market in the next uh one two three four months I think that we are in dire need of a technical pullback u in order you know see some profit taking shake out some late money Longs and attract new buyers okay all right so guys that is going to wrap us up today I have to go get some pizza uh this will be our last show of the year everybody’s on holiday schedules for the next couple weeks so let us know should we come back in 2025 you can type yes you can type no but guys thank you for all the fun it’s been a wonderful year this has been a really fun experiment and Scott says yes so everybody can thank Scott L for when we come back in 2025 so everybody have Merry Christmas happy Hanukkah happy K Quanza whatever else you do we don’t say happy holidays around here here we do the real thing okay everybody have a wonderful day thank you guys