The Three Musketeers – Nvidia, Palantir and Coreweave

This is a borderline sensational chart. After bunching, all three moving averages are turning higher. The index is close to breaking out from 18 months of trading sideways in a tight range. Chartists refer to this as a line breakout, and it is a powerful pattern. Finally, Coppock, after falling steeply close to the zero line, is flattening out on the brink of turning higher.

This is a triple whammy of immense power saying – BUY, BUY, BUY. This is one of those moments when I ask myself what else are we waiting for, the parting of the waves on the Red Sea, Moses coming down from the mountainside with flaming letters on the stone tablets saying Buy Stocks!

As if that were not enough excitement, we have some incredible companies in which to invest.

Nvidia’s chart looks like that of the Nasdaq 100 Technology Sector index, even though that index is unweighted, so not dominated by the Mega Caps. Nvidia is so central to the technology revolution that it almost is the technology revolution. Losing the Chinese market is a hit, and I agree with Jensen Huang a mistake, but that is all in the price. These shares look poised to blast higher, especially if we are only in the foothills of an era of spectacular technological progress.

Analysts and institutional investors reel at the valuation accorded to Palantir. Private investors and simpler folk like me see the most exciting fundamentals I have ever encountered. How do you put a value on such an incredible opportunity? There is only one way: buyers and sellers are going to have to slug it out, and currently, the buyers are winning, even while much of the big money is sitting on the sidelines.

That valuation means there could be big dips in the price line, like the one that freakishly sold me out recently, but they are buying opportunities for believers.

I have been brooding about the bearish analysis of Coreweave produced by investment bank DA Davidson. It stopped the advance in Coreweave shares in its tracks and gave fence-sitting institutional investors a reason not to buy the shares, but I am convinced it is wrong. You see it all the time, clever clogs analysts plunging the knife with plausible arguments that might win them a first-class degree in their college final exams, but ultimately tell us nothing.

A company’s future is not determined by the cogitations of competing analysts but by the drive and ambition of the management, and the guys at Coreweave have that in spades. On top of that, they are addressing a colossal opportunity. My view is that the Davidson bear raid is a buying opportunity.

Share Recommendations

Nvidia NVDA

Palantir. PLTR

Coreweave. CRWV