What should investors do when facing the whirlwind of Deep Seek?—–Buy at low! First of all TikTok is not the Bible. In social media, there are a lot of keyboard fighters known as 50 cents. That is when they make a post in social media like Meta or X, they can get a wage of 50 cents (Chinese Yuan), and that’s why those posts can be seen overwhelmingly that they have a lot of tests on Deep Seek and proved more powerful than any others. Meanwhile, this can also be done by robot account or AI accounts now.
The market has been rising since the meteor shower of Orion in October 2022, and investors had been waiting for a healthy adjustment for quite a long time. Unluckily, it had not come. Therefore any turmoil would be considered as Butterfly Effect or Black Swan or Grey Rhino…….The setback of the internet world is that any small turmoil can be largely exaggerated.
So when adjustment comes, just buy in. As I have said in the jumping gap of S&P should buy in at 5783, so when market opened at 5782 on Jan 13th should buy in at once. On Jan 27th when market is under 6000 points of S&P also can buy in. Practically, it is quite hard to buy in at the lowest point, just buy in when you think it is reasonable and do it step by step. Such as AMD, a lot of analysts told investors to buy in, but it continues to fall. Even a W shape is formed in December, it still continue to drop in January and now is still falling. Thus, we have to go to fundamental analysis.
Even though there are a lot of unfavorable news concerning NVDA, but we still have to look at the other side. See the heading, NVDA just got a “High” award of Earning Quality Ranking (EQR) for 12 consecutive weeks. So it is reasonably to have a rebound on Tuesday after the drop on Monday. Mind that on Monday even NASDAQ fell greatly, but the Heat Map Chart is still green more than red (See page 1). For further outlook, please mind the result announcement of NVDA on Feb 26th. Last night, NVDA had a sharp rebound and still closed above the 250-SMA even after the drop. Actually, it provided a nice chance for buying in. Tonight, Federal Reserve will have their FOMC meeting, it is expected interest rate will keep unchanged, but the press conference after that will be quite important, we have to see what Chairman Powell will do when facing the pressure of Trump and his so many executive orders. The outlook of Powell will also affect the market very much.