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Video Transcript:

Hello. A little woozy from all the bitcoin action. How about stocks and bitcoin? When you look at bitcoin and you see this going like that, do you ever wonder how that might affect stocks? Well, the number one stock in the world that’s really tied to bitcoin is Nvidia, those graphics card that all those Chinese mining companies are using to mine bitcoin which may or may not persist. Do you ever wonder if somehow Nvidia is tied to bitcoin and, if it is, if there is a trade lurking inside that correlation? Well, let’s jump on over to the charts and we’re going to take a look.

Rob Booker: All right. Here is a look at bitcoin and Nvidia. This has perplexed me and interested me for quite some time, and I think you might find this to be pretty interesting. Look at this. Right here, you see bitcoin is right here in the … These are the bars. And Nvidia are the candles right here. This is kind of whacked. Bitcoin is rising but Nvidia is going sideways. If bitcoin is rising but Nvidia is not, what is fascinating to me is that Nvidia has to jump upward to catch it. Now, likewise, in the past, that relationship is held true and I would ordinarily think that it would be the reverse. Well, it is the reverse. If Nvidia is rising, then eventually bitcoin rises to meet it. Now, you would think it was the other way around. You would think that if bitcoin takes a big jump that later on Nvidia will because there will be more demand for bitcoin. And because there’s more demand for bitcoin, there’s more demand for mining bitcoin which means there’s more demand for these graphics cards used for mining bitcoin.

Well, anyway, I just find that to be absolutely stunningly interesting. And, if I saw a bitcoin rising but Nvidia falling, I would probably buy some Nvidia. And, if I saw bitcoin falling and Nvidia … Whatever. You get the point. That somehow these two things are actually somewhat correlated. Now, not as correlated like Ford and Chrysler and blah blah blah, but still related nonetheless. Anyway, that’s not the point exactly. The point is when they are in correlation as they are right now, eventually they come back out of correlation. Eventually, they come back. One of them starts to fall and the other then has to follow along.

I thought to myself, “Hey, self. Why don’t we take a look at what Nvidia is doing on the longer term chart just because we know that if one of them moves, the other one starts to move as well.” Check this out. A million years later. All right. Here we are. Are you ready for this? We’re going to look at the Nvidia stock on the daily chart and we’re going to also look at the missed pivot situation. Are you ready? What? What is this? Look at the missed pivots on Nvidia. Now, if that’s not the stupidest chart you’ve ever seen in your life, I don’t know what is. This is easily the craziest chart in the world right now.

I was shorting Nvidia back at $47. Now I close that trade at a loss. It is now trading at $198 and I’m just going to boldly make a claim that this is ridiculous and this is a great place to start looking at this stock returning to hit old missed pivots. We’ve got a yearly pivot below. We’ve got monthly pivots below. I’m not even showing the missed weekly pivots. This is preposterous and disgusting and crazy.

I don’t know where this really leads us. I don’t really know what the exact point of all this was other than to say there is a really interesting correlation between bitcoin and Nvidia. And when one starts to move, the other then follows. Number two, Nvidia is at a preposterous level at this point such that it seems that it is ready … Let’s see. Wave one, two, three, maybe a fourth wave correction down to a 160, $170. It seems like it’s likely. I don’t short stocks so I can’t really even prove that to be true. But this is, in my opinion, the most interesting stock in the world right now if only because it’s at ludicrous levels. I will be back tomorrow and we will follow up on this tangentially over the next few weeks. If you like the video, you want to maybe even trade some of this stuff together, click the subscribe button here on YouTube which should be hovering over my head over there or like the video and leave a comment below and I will see you in the next one.

Have the best day ever.

Rob

 

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