Wall Street expert claims Nvidia stock is ‘manipulated,’ predicts NVDA crash
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One of the best-performing and most-discussed stocks of 2024 – the semiconductor giant Nvidia (NASDAQ: NVDA) – has hit a rough patch in recent trading. Specifically, after climbing to highs near $150, NVDA shares crashed to their press time price of $130.28. In fact, the decline has been so significant that Nvidia stock is, at press time on December 20, 0.38% in the red in the six-month chart. NVDA stock 6-month price chart. Source: Google One Wall Street analyst, GJL Research’s Gordon Johnson – otherwise best known as one of Tesla’s (NASDAQ: TSLA) biggest bears – believes that the downturn is far from over and that NVDA will see a further fall in the Friday session. Why Johnson believes the Nvidia downtrend is artificial According to Johnson, Nvidia’s stock price is being manipulated by using recently approved products such as Zero Days to Expiration (0DTE) options. The analyst believes that the stark break from the three-year averages in the 1-month 25-delta put strike volume and call strike volume showcases there is significantly more demand for puts than for calls and, thus, that there is strong and artificial downward pressure affecting NVDA. Gordon Johnson also linked this phenomenon to the market maker’s need to cover their positions and highlighted that it is simultaneously not how the U.S. stock market is intended to operate and that it has an outsized importance for equities due to Nvidia’s size and prominence. In an attempt to explain how unintended and inorganic traffic can have such an impact, the analyst added that the responsible regulator – the Securities and Exchange Commission (SEC) – ‘is virtually non-existent.’ 1/7 Why $NVDA‘s stock is falling, and will (likely) fall A LOT MORE today a 🧵. — Gordon Johnson (@GordonJohnson19) December 20, 2024 Most experts foresee a continued NVDA stock…
