Quantum Bubble Pops / $NVDA Bounces

$NVDA

The quantum compute stocks are getting slammed in the pre-market, as at least for today, the bubble seems to be popping. Names such as $QUBT, $QBTS, $RGTI, $QMCO, $LAES, IONQ 0.00%↑ are worth keeping an eye on for sector perspective.

NVDA 0.00%↑ is up in the pre-market however, and is at an interesting junction for gauging whether it’s about to breakout or breakdown. The 20 day (purple) is the starting point for me. A breach through there would setup potential to possibly retest at the AVWAP from the earnings gap up (around $124).

I’m currently long NVDA 0.00%↑ with a cost basis of $143, as I opened a position about halfway through yesterdays fade. I don’t know if this will be a sympathetic bounce before a breakdown, or if yesterday was a shakeout for a move back to new highs. But I can manage risk using that 20 day moving average.