2min snip

The Compound and Friends cover image

Will It End Badly?

The Compound and Friends

NOTE

Navigating Stock Market Consolidation

Stocks like Nvidia can go through periods of consolidation where they trade sideways for months before taking off again. This consolidation phase is healthy for the stock and preferable to a sudden crash. Nvidia previously demonstrated this pattern where it traded beautifully after being stretched, providing a great trading opportunity. Such consolidation through time is beneficial for individual stocks and can lead to explosive growth when supported by strong fundamentals. Retail investors often use ETFs like SPY to track the market conditions, which can provide valuable insights into the overall market sentiment and trends.

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