Smoking Gun Part 6: Nvidia
The massive rally in Nvidia started with a ghost pattern detecting 💰 Billions in stock and call options buying after OpenAI's chatGPT is released.
OpenAI launches chatGPT on November 30, 2022. Five days later (December 5) chatGPT reaches 1 million users. For comparison, Instagram reached 1 million users 2.5 months after launch. Just 10 days after reaching 1 million users, everyone deep in the know about AI connect the dots to Nvidia and their newly released Hopper GPU architecture and the buying begins. I'll showcase it in the chart below. Before going further, I'd like to point out that this is one of the rare occasions when innovation surprises everyone and there are no insiders cheaters getting tipped off. Don't forget this innovation came on the heals of a series of huge Federal Reserve interest rate hikes. But first, let me tell you why there were no cheaters. Simply put, the OpenAI team didn't know chatGPT was going to work so there was nothing for the cheaters to trade on. Here's Stephen Wolfram to explain. You only need to watch the first 20 seconds of the video below to understand:
This further proves that my ghost pattern does indeed predict pre-planned events. Since chatGPT was a total surprise, the ghost pattern didn't detect extreme buying until later. As the rumors started to spread and people started investigating the details of OpenAI and what companies can benefit from this new trend, the buying began. Let's get into the details..
👻Ghost Pattern on Nvidia Stock:
Each red and green band on the image below is my ghost pattern identifying extreme selling and buying.
A, B, C, D: Easy. The Federal Reserve was raising interest rates.
The insiders cheaters ALWAYS know what The FED will do with interest rates before they announce it. Event A was literally the very first time The FED raised rates since the Covid-19 crash. In fact, each event was literally an FOMC meeting where they raised interest rates. The dates are on point except for D where the selling started on July 13 2022 and the meeting wasn't until July 26 where The FED raised rates again. The selling on Event D lasted 1 month. Then something fascinating happened. September 20 was the next FOMC meeting and on the same day September 20th, Nvidia announced the release of the Hopper chip, an Nvidia specially designed GPU for training AI models. 😲 Notice zero ghost patterns between Event D and Event E. Even though there was yet another interest rate hike during the September 20 FOMC meeting, I think the Hopper release nullified any selling that was happening with buying in anticipation of big revenues from Hopper. Here's an excerpt of what Hopper actually is:
"The NVIDIA Hopper architecture advances Tensor Core technology with the Transformer Engine, designed to accelerate the training of AI models." Below is the source article if you're interested:
Tensor Core and Transformer Engine are the absolute key to the success of chatGPT.
E: The rumors spread about chatGPT
So, Nvidia releases Hopper then chatGPT launches and smashes expectations. Shortly after, the 👻 ghost pattern identifies 37 days of non-stop buying from December 15th 2022 - February 7, 2023. And the rally of the century begins! 💰
Conclusion
The ghost pattern shows you when the big money buys or sells stocks. It also shows you when there's true foreknowledge of events and when there's not. This is the main reason why I wrote this Nvidia article. To show an example when there was no foreknowledge and therefore no smoking gun of buying ahead of time. Unlike the previous posts, this is a zoomed in chart. I did this because I don't want to give away too much out of respect for my members who support me. But there's just one more Nvidia article to write in my SmokingGun series and it's about a very very wealthy hedge fund manager whose trades I discovered 😉. Stay tuned...