Nvidia (NVDA) Runs

The stock had been under pressure and had been moving sideways to lower since peaking just after the 10 for 1 stock split this past spring / summer. One reason for the pressure had been that CEO Jensen Huang had been monetizing part of his holdings, which he is certainly within his rights to do, especially after creating such large gains over years for us shareholders.

Well, on Tuesday, Barron's reported that Huang had completed a predetermined sale over time of six million shares from June 14th through September 13th at prices ranging from $91.72 to $140.24. Huang is said to have grossed $713M on those sales that were made through his Rule 10b5-1 plan at an average price of $118.83. The plan, which would have expired this coming March is now complete. The account from which Huang sold those 6M shares still holds 75.4M shares, while Huang also owns 786M additional shares through trusts and partnerships.

The stock rallied on Tuesday, and is still going... one, because Huang is done selling stock at least until March... two, because Huang still has such a large personal financial interest in the stock's performance, and three... because the Blackwell chips that had been delayed were reported across the Twittersphere on tuesday to be on schedule to produce some 450K units during Q4 2024, which implies a potential revenue generating opportunity of $10B for those chips alone.

Readers will notice the closing pennant pattern developed by NVDA since this past spring. This often foretells an explosive move in either direction. That said, the stock has just taken and moved off of its 50-day SMA to the upside, while Relative Strength has moved north of neutral and the daily MACD is very close to sending a more bullish signal.

Within that daily MACD, the histogram of the 9-day EMA has gone positive as the 12-day EMA line has crossed above the 26-day EMA line. That's a positive development but would pack more punch in my opinion if both of those lines were above zero. Currently, the 26-day line remains in negative territory.

I am long NVDA.