Failed Nvidia Breakout Burns Momo Crowd Interest Rates Rise Benzinga

Bonisiwe Shabane

-Dec 31, 2025, 6:10 PM

failed nvidia breakout burns momo crowd interest rates rise benzinga

To gain an edge, this is what you need to know today. An enlarged chart of NVIDIA Corp (NASDAQ:NVDA). In the early trade, money flows are positive in Microsoft Corp and NVDA. In the early trade, money flows are neutral in Meta Platforms Inc . In the early trade, money flows are negative in Apple Inc, Amazon.com, Inc., Alphabet Inc Class C , and Tesla Inc. To gain an edge, this is what you need to know today.

Please click here for a chart of S&P 500 ETF (SPY) which represents the benchmark stock market index S&P 500 (SPX). See also BIGGEST EVER OPTION EXPIRATION AHEAD – MARKET MAKERS WILL ATTEMPT TO WIPE OUT SOME MOMOS In the early trade, money flows are negative in Amazon (AMZN), Nvidia (NVDA), Microsoft (MSFT), Alphabet (GOOG), Meta (META), Tesla (TSLA), and Apple (AAPL). In the early trade, money flows are negative in S&P 500 ETF (SPY) and Nasdaq 100 ETF (QQQ). Please use a PC Browser to access Register-Tadawul Wall Street Comes To Nvidia's Defense After Biggest Loss Ever, Many Momos Wiped Out

To gain an edge, this is what you need to know today. Please click here for an enlarged chart of NVIDIA Corp (NASDAQ:NVDA). In the early trade, money flows are positive in Alphabet (GOOG), Meta (META), and Nvidia (NVDA). Written by The Arora Report for Benzinga-> To gain an edge, this is what you need to know today. Please click here for an enlarged version of the chart of Nvidia stock (NASDAQ: NVDA).

The Morning Capsule is about the big picture, not an individual stock. The chart of NVDA stock is being used to illustrate the point. NVDA is the best performing large stock as NVDA is at the center of the AI revolution. The chart shows a breakout on January 8, 2024. The chart shows the very steep trendline since the breakout. The chart shows the buying frenzy in NVDA stock.

The chart shows that since the breakout, NVDA stock has moved up 45.2% in a very short time. The move up in the stock market in 2024 is the result of two events. AI frenzy led by NVDA stock Momo gurus’ narrative of six rate cuts in 2024, starting in March. The Arora Report repeatedly cautioned you against believing in the momo gurus’ narrative of interest rate cuts. Now it is clear that momo gurus have been wrong on their interest rate cut projections. The Arora Report call on AI has been very positive.

Our call originally was that a fortune was to be made over seven years. That call was made over a year ago. So far, that call has been spot on. When one stock, such as NVDA, becomes responsible for a large part of the move of the entire stock market and for the extreme positive sentiment, it is important to pay attention to the... NVDA reports earnings on February 21. The consensus for NVDA earnings is $4.56.

The consensus for revenue is $20.32B. Less informed investors do not understand that stocks do not move based on published consensus earnings and revenue estimates. Stocks move based on whisper numbers. Whisper numbers are the numbers that analysts share privately, only with their best clients. The whisper numbers for NVDA are at $5 for earnings and $22B for revenue. Sentiment in NVDA is at extreme positive.

Here is the most often asked question, “I don’t own NVDA. Should I buy it now?” Typically, investors answer the question themselves. They cannot stand that they do not own NVDA, so they jump in with both feet to buy it now. This is the same pattern that the same investors showed when TSLA was trading at a much higher price. NVDA earnings will determine the near term course of the stock market. This morning there is aggressive buying in junk stocks and penny stocks.

As an actionable item, the sum total of the foregoing is in the protection band, which strikes the optimum balance between various crosscurrents. Please scroll down to see the protection band. Magnificent Seven Money Flows In the early trade, money flows are positive in Amazon.com, Inc. (NASDAQ: AMZN), Alphabet Inc Class C (NASDAQ: GOOG), Meta Platforms Inc (NASDAQ: META), Microsoft Corp (NASDAQ: MSFT), NVIDIA Corp, and Tesla Inc (NASDAQ: TSLA). To gain an edge, this is what you need to know today.

Please click here for an enlarged version of the chart of NVIDIA Corp NVDA. In the early trade, money flows are positive in Amazon.com, Inc. AMZN and Alphabet Inc Class C GOOG. In the early trade, money flows are neutral in Microsoft Corp MSFT and Meta Platforms Inc META. In the early trade, money flows are negative in NVDA, Apple Inc AAPL, and Tesla Inc TSLA. In the second quarter of 2024, the U.S.

economy remained resilient in an environment where inflation and interest rates remained higher than expectations. Tighter monetary policy was offset by accommodative fiscal policy and a strong US consumer. The S&P 500 Index gained nearly 4.5% in the quarter, reaching a new all-time high. Gains were again led by technology stocks with the Nasdaq gaining over 8.0% in the quarter. Chip-maker Nvidia became the world’s most valuable company in late June after its share price climbed to an all-time high. We also saw the continuing trend of large-cap stocks (Russell 1000 Index) outperforming small-cap stocks (Russell 2000 Index) and growth (Russell 1000 Growth) beating value (Russell 1000 Value).

Overseas, results were mixed with developed international stocks (MSCI EAFE) falling 0.2%, while emerging markets stocks (MSCI EM Index) rebounded nearly 5.0%. Within the bond markets, returns were positive across most fixed-income segments. The benchmark 10-year Treasury yield ended the quarter unchanged, but interest rates were volatile. The 10-Year Treasury yield started at 4.20% and rose to 4.70% before returning to the mid-4.20% range. The Bloomberg U.S. Aggregate Bond Index gained 0.3%.

As the narrative around peak rates was reinforced throughout the month, growth stocks added to their enormous year-to-date lead over value stocks. The Russell 1000 Value Index posted a more than respectable gain of 7.5% but was not a match for its growth counterparts’ return of 10.9%. So far this year, large cap growth stocks are outperforming large cap value stocks by a colossal 31 percentage points! 2023 has been the second-best year for growth stocks relative to value stocks since the first full calendar year of the Russell 1000 style indexes in 1979.

Failed Nvidia Breakout Burns Momo Crowd Interest Rates Rise Benzinga

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