NVDA's board of directors begins an investigation into CEO Jensen Huang caught up in an extramarital affair with a Chinese spy named Alice Huang. They both have the same surname but they are not related. That would be even juicier. The media is going to have a field day with the story. Jensen must now perform the 'walk of shame'.
Jensen apologizes to his wife and children saying there was no excuse for what he did. Sounds like he is more sorry he got caught. The womanizer tells the NVIDIA employees that he will earn back their confidence. Now it makes sense why Jensen was always licking King Donnie's shoes. Secretary of State Rubio, and the president, knew about the affair months ago, and Jensen likely knew that they knew, so anytime that Trumpski wanted to put on a tech dog and pony show at the Whitehouse, lapdog Jensen was first in line.
Trump says he would like to see Jensen stay on as CEO without acknowledging that trade secrets and other sensitive information about the advanced semiconductors may have been given away during pillow talk. Stealing intellectual property is communist China's specialty. Humorously, the US government banned the selling of NVIDIA's chips to China but the guy putting the labels on the shipping boxes is lying in bed, literally, with pretty Alice the Chinese spy. Go Ask Alice. I think she'll know.
People do regretful things based on power, money, greed, ideology, sex and other reasons. Jensen checks the sex box. How did he meet the petite Asian beauty? Your name is Huang, too? Yes, and you a big strong man, how you huangin'? I'm huangin' fine honey. Men are powerless against the siren song of pleasure from all of you beautiful women. Alice told Jensen she just shaved her legs and he can touch her thigh, inner thigh. That was all Jensen could take. He started spilling trade secrets to his beautiful concubine unable to fight the siren song of pleasure filling his mind.
Jensen likes his leather jackets so Alice may have been into leather as well. Ohh-la-la. She probably gave him a feather whip and a paddle for his birthday. Jensen will continue the walk of shame all week long. If he is booted from NVDA, how will that impact the AI race? NVDA is down -5% in the premarket on Monday morning.
On the technical side, the chart shows the ugliness. NVDA set a record high at 243.37 on 10/6/26 now a month ago. It fell under 195 (maroon line) that is a -20% retracement and labeled as a bear market. Long time followers know that Keystone does not put a lot of stock in the -10% correction and -20% bear market guidelines. These levels are more for the business media that can tout something simple on the television or internet.
A key metric that will delineate between a cyclical bull and cyclical bear market is the slope of the 150-day MA (dark blue box). You can check it for all your holdings. If the 150 is sloping higher, the stock or index is in a cyclical bull market pattern. When the 150 flattens and rolls over to the downside, sloping lower, that is a cyclical bear market. The purple line above shows the 150-day MA sloping higher but starting to flatten at the 212-ish area. It makes sense since price is way below and that will pull the moving average lower over time. NVDA remains in a cyclical bull market but in the days and few weeks ahead it may revert to a cyclical bear market.
The light blue lines show a textbook two-leg bear flag. Alice had pretty legs. Price peaks at 243 and the first leg drops to 213 so that is a 30 difference. The sideways consolidation occurs with a slight upward bias forming the flag, check, and then price begins moving lower from 220 to start the second leg. Taking 30 away from 220 is a 190 downside target and bingo, old guys say bingo a lot, price meets the target and satisfies the bear flag pattern.
The green lines for the chart indicators show positive divergence and a bounce desired in the daily time frame but the histogram and MACD remain weak and bleak wanting another low in price. In addition, the naughty Jensen news hit over the weekend so there is a reckoning on tap for today. Price is down to 176-ish in the premarket. It should set up for a bounce in the daily time frame after the smoke clears for a couple days. There is no reason to jump into it on the long side. Instead, let the carnal drama play out for a couple days.
The ADX shows that the downside move is a STRONG trend lower that may be sustainable moving above the 27-ish area. The last strong trend was when price was moving higher in May but that petered out in June. The Aroon red line says the bears expect the stock price to continue falling and the green line says the bulls also expect the stock to fall. It is a contrarian indicator. If everyone is in the camp expecting lots of negativity that tells you it may be time for a relief rally. You can watch the 50 and 200-day MA cross that may occur this month, commonly called the Death Cross.
If you play the bounce that should occur this week perhaps into next, for a few-day scalp trade, do not marry the position because the weekly chart is nasty wanting lower lows on the weekly basis.
The Jensen scandal will have to play out for a few days to see the shakeout. The stock may remain weak if Jensen is booted out of the company. He is the figurehead of AI some call the Godfather or Grandfather of AI. Well, that granddad still had some giddy-up in his step. The poor man could not resist the smooth touch of Alice's lovely shaved legs. Legs. She's got legs and knows how to use them. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.
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