Trading Room Summary - August 28th

From macro-moving news to actionable sector rotation & trade reviews.

» CLUB/EDGE client post AUGUST 28th, 6:14 PM ET.

While we were waiting for NVDA, we did have some fun chasing SMCI short.

As discussed in my Live Trading Room Mon:

Short $SMCI below $606 with PT $428.69.

Today I came up with the next one: $357
Yes, $357 because that = Jan 2024 breakout.
Translation: ALL gains erased for the year.

If you are looking for fundamental analysis of the bear nature... Way before Hindenberg, there was @theOrcaFin.
His May 2024 Substack is hot fire flames on this dumpster disaster that is SMCI.

We also had PDD - also from Monday:

Short PDD below 106.38 into 98.96, 94 then 88.

I will admit, I thought it might take a few weeks not a few days.

ANF is another one I think has miles and miles to go before it stops falling, but will take months - like NVDA.

It has gained 700% since May of 2023 - more than NVDA + Bitcoin returns combined!

There are other so-so retail plays like this that have benefited on the slush fund that is money supply just looking for a home that will start to leave it.
ANF is a poster child for excess liquidity that will leak out over next few quarters.

Anyway, it looks like QQQ 465.11 daily gap fill will hit with overshoot to 463.63 hourly gap fill before I can see if market gets defended and marked back up into September OpEx on the 20th, but that is still my baseline bet.

Have a nice evening and see in you in the trading room tomorrow!!

---