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Here Is What I Think Of NVDA Stock Here While This Mining Stock Lines Up

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Silver miner PAAS went up 7.66% yesterday. I own it, but it has gone up so much now that I think there is no real good entry point in it at the moment.

Meanwhile, NVDA went up over 6% Tuesday, while the DOW fell over 200 points. The move in NVDA is all the news in the financial media this morning, while they ignore PAAS. NVDA had earnings last week and gapped and ran and now there is a 10-1 stock split set for June 10, that people are talking about and buying into.

If you look at the financial news you can find dozens of news stories bullish on NVDA this morning, like this one from Yahoo Finance:

The Russell 2000 fell too yesterday, so Tuesday’s action looks like the narrowing of the market rally that I was thinking would happen, but that doesn’t mean it’s over.

So, should you buy NVDA?

I don’t know, I don’t like to chase stocks with a chart like NVDA has now, or PAAS at this point, for that matter, but let me tell you what I did with NVDA.

I was bearish on the stock market throughout all of 2022, and then on January 16, 2023, I turned totally bullish with a post titled Stock Market Rally Confirmed By Rare Technical Analysis Buy Signal (Cyclical Bull Market Begins).

At the time I wrote that, most people remained bearish, or too banged up and scared from 2022 to do anything, but I banged the drum on a new bull market for about six weeks, like I did with silver and gold this March.

I did several posts and Youtube videos and in one of them said I expected that NVDA would be the big cap stock leader for this bull market. I bought it too, I believe, when it was under $150.00

I thought it would be the big stock leader, not because of “AI", which hadn’t even turned into a mass meme yet, but because the stock was among the strongest relative strength stocks in the entire Nasdaq 100 for the fourth quarter.

Such stocks that do that, at the end of a bear market, tend to become leaders on the next bull market, and that is what NVDA did.

However, as the market went up in February and March I kept adding to my exposure in the stock market, increasing it a lot.

Then the momentum faded a bit, and I frankly was not a believer in the broad market as a long-term investment, that would just go up forever without another bear market. I thought it would turn into a cyclical bull market rally that would last one to two years, and still think that it is going to be of limited duration.

I had boosted my stock exposure a lot and then I had to go to a medical procedure in March of 2023 in the morning (I’m fine) and they drugged me up. I got home turned on the TV and the banks were crashing and I sold out of a lot of my positions, including NVDA, which I think I sold between $200 and $250, probably closer to $250, looking at the chart.

I ended buying in the shipping sector in the summer, and shipping stocks did incredible in the second half of last year, and am now roughly 50% invested overall in ETF’s and stocks, mostly focused on precious metals and mining stocks, and 50% in short-term bonds and CD’s. That is the right allocation for me that I feel comfortable with.

The mistake I made, though, was not the selling, but the buying of more that I did, so I was like over 80% invested that March and the action shook me out.

I bought too much exposure, for me, and that made me sell when things got smashed.

If I had only put 20% of my money into US stocks in early 2023 I would not have sold like I did that March and may still be holding them now.

There is a big lesson for everyone in that.

I am not worried, though, about whether NVDA goes up or down from here, as I own all sorts of other stuff that I don’t care what it does. NVDA simply is not the only stock in the market, even if it is the only one they are talking about this morning.

At this point, though, buying it here doesn’t make sense for me, because I like to buy early in a bull market, as was the case in January of 2023 for NVDA, or to try to buy at the end of a stage one basing phase. NVDA and the US stock market for that matter, are not in that position right now, so I’m not interested myself in doing anything with NVDA.

You need to have a strategy when you trade stocks or even invest in them.

When I look through charts I just see some mining stocks with better entry points now.

I WOULD NOT short NVDA, though.

You don’t want to short the leading stock of a bull market, even if the action and focus on NVDA reminds me of CSCO and the Nasdaq back in 1999 and 2000.

CSCO was the one stock everyone had to own back then, just as NVDA is today.

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Here is a chart of the SLV silver ETF.

How can anyone jump in and out of that and trade it and do well?

It pulled back last week and then yesterday just gapped up and ran like wild.

It’s so much easier to just buy and hold gold and silver then to try to trade them.

But to hold them you have to have a position that is not so big that you end up getting shaken out when there is a pullback like there was last week.

That’s why I shared with you the adventure I had in buying NVDA, last year, before people really talked about it and then selling it 750 points lower than where it is now.

At the same time, though, silver isn’t in such a great trading position where one could go right now from having nothing invested in it to having a huge position in it either.

Some individual mining stocks are in a better position to buy right now.

For instance take a look at this major gold mining stock, in a good spot to buy, with growing earnings and a nice dividend:

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