DeepSeek AI Shakes Up the Market
The tech world is buzzing as China’s DeepSeek AI, an open-source ChatGPT competitor, claims the #1 spot on the App Store. Could this disrupt NVIDIA, AMD, and other semiconductor stocks that have thrived on AI momentum?
Let’s dive into the market action, analyze key stocks, and explore tomorrow’s trading opportunities along with what stocks could be impacted by DeepSeek AI.
Market Overview
- DeepSEEK AI’s Impact:
- The open-source nature of DeepSeek AI could pressure high-flying AI-related stocks like NVIDIA and AMD.
- Friday saw initial reactions, with NVIDIA rolling over by $8.
- Market Conditions:
- Despite Friday’s rest day, the market remains in a bullish setup.
- Overbought conditions may lead to some back-and-fill action before resuming the uptrend.
Top Stocks to Watch
Semiconductors
- NVIDIA (NVDA)
- Potential fade setup if news of DeepSync AI gains traction.
- Key Levels: Watch for a gap-up tomorrow to short near resistance.
- AMD (AMD)
- Similar fade potential if semiconductors react negatively.
- Strategy: Monitor pre-market action for entry opportunities.
Chinese Tech Stocks
- Alibaba (BABA)
- Reclaimed the 50-day moving average and broke out of a range.
- Day trade only—Chinese stocks often lack follow-through.
- Pinduoduo (PDD)
- Breaking multi-month bases with excellent intraday range.
- Kingsoft Cloud (KC)
- Multi-year breakout in progress. Watch for a pullback before re-entry.
Swing and Day Trade Setups
- Netflix (NFLX)
- Two inside days following an earnings breakout.
- Strategy: Watch for a breakout above $984 to target $1,000+.
- Twilio (TWLO)
- Strong post-earnings trend. Day trade on momentum; wait for consolidation for swing trades.
- OKLO (OKLO)
- Massive gains recently but showing signs of exhaustion.
- Strategy: Look for a gap-up to short into intraday weakness.
Pro Tips for Traders
- Stay Flexible: Trade Chinese names cautiously; focus on day trades.
- Watch for Gaps: Overbought stocks may provide great fade setups if they gap higher.
- Focus on Big Levels: Stocks like NVIDIA and AMD at resistance can provide high-probability trades.
Watch for any more news on DeepSeek AI and the Semiconductor and AI stocks for volatility I think thats where the play is. Gut feeling is if the deepseek makes some american companies take a hit we short the nuclears whose main reason for running so hot was on the ai. CEG & oklo
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