Nvidia lost more money in three trading days than most countries will ever see. SK Hynix and Samsung Electronics joined the party. The chip sector shed over a trillion dollars since Friday's close. Retail traders checked their technical indicators and found seventeen reasons to add more.
The AI boom companies got their faces ripped off. The same stocks that quintupled because everyone decided computers need to think now gave back enough market cap to fund a small nation's GDP for a decade. Your moving averages did not warn you. Your RSI did not save you. Your Fibonacci retracement levels drew pretty lines while your portfolio turned into a tax loss harvest.
Here's what the candlestick patterns revealed: absolutely f*cking nothing. Red candles appeared after the stocks dropped. The 50-day crossed below the 200-day after you were already down 40%. Technical analysis identified the selloff with the same precision it identifies everything else, which is to say three weeks late and with the confidence of a fortune cookie.
The most advanced semiconductor companies on Earth build chips that power artificial intelligence. These chips process billions of calculations per second. They run neural networks that can write poetry and diagnose cancer. Not one of those chips predicted their own stock price would crater. Not one algorithm saw this coming. But sure, your head-and-shoulders pattern spotted it.
Every dip buyer who learned about support levels last month stepped in at what they thought was the bottom. Then they stepped in again lower. Then they ran out of steps and money. The triangle broke down. The channel failed. The cup had no handle.
The technical setup was bullish right up until everyone lost a trillion dollars, and then somehow it was bearish the whole time.
Photo by Krzysztof Hepner on Unsplash
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