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Trading Strategies

Buy This Winner Now, and Take Profits Before Wall Street Catches Up

There are times when a company becomes the best-known representative for its sector, for better or worse.

It happened with Nvidia Corp. shares more than a year ago as any mention of the semiconductor sector was prefaced or followed with talk of Nvidia. For those of you doing this long enough, Intel used to be the face of the Semis.

Anyhow, I bring this up because everyone's focus on Nvidia's poor performance has cast a cloud over the rest of the semiconductor sector, a group that is wildly outperforming the rest of the market.

Here's the thing – Nvidia is trading 10% higher for the year, but you would think that it was down 25% the way that analysts and the media talk about the stock.

Truth is that the stock is potentially in one of the most powerful stages of a rally: the "disbelief" stage.

This sweet spot in a stock, sector, or market rally happens when investors are still shell-shocked from the last round of selling and are too nervous to jump on the bull that's already started to run.

Let's take a look... Full Story