Fake News swirls around Nvidia! US Steel buyout canceled!

good day subscribers welcome back to the contrarian everyone we have big news today out of Pittsburgh us steel will not be being bought out by uh nipon steel manufacturing uh according to President Biden or whoever made that decision for him and also in the news we have broadcom reporting earnings coming up another major semiconductor manufacturer uh on the heels of Nvidia earnings report just last week and kind of semiconductors as a whole I'm going to discuss just because of how beaten down these have been recently even with nvidia's earnings coming out very strongly so kind of discussing what may have happened there um even just you know the entire Market correcting even a little bit the last week or so um you know it seems to be kind of counterintuitive like why is it going that direction even though for example nvidia's earnings came in very strong so you know first off with us steel not going through I mean maybe that was something they thought of beforehand but it appears that the market really was not pricing that in because us steel the stock is down some 15 to 20% after this news just broke today that Biden is not going to allow basically a foreign national uh manufacturing steel uh manufacturing company to acquire us steel he's going to basically force it to stay a us-based company so you know on the back of this news the stock is of course selling off heavily because a reason why it's been up dramatically in the last 6 months had to do with the news that it was going to be bought out by nipon Steel and Manufacturing and now with that off the table it kind of has to go back to the fundamentals where it was before um of course you know on the back of this uh we could see a lot of you know news maybe go back and forth a bit but um you know it it does appear that us steel is kind of back to the drawing board in terms of maybe they try to find some other us-based Steel company that would want to acquire them you know maybe they're kind of on their own at this point but um the whole us steel industry unfortunately I mean there's better companies than others for sure less bureaucratic ones but us steel has just been around for so long that I think unfortunately just a lot of the unions and bureaucracy that has developed around that whole industry has just you know kind of become a strangle hold on the industry itself and unfortunately it hurts the com competitiveness you know the the competition um you know outside of the US of course tariffs try to you know account for that but um you know us steel as a company on its own it's just doesn't look that great on its own so you know we will re really need to see what happens and transpires with us steel and if anyone actually wants to acquire them or not but you know um maybe a more interesting thing to talk about of course is NVIDIA like what stock is not talked about every single day but you know Nvidia yesterday news broke that they were subpoena by the US Department of Justice um you know basically an Anti-Trust type of uh accusation against Nvidia that they were somehow you know interfering with competitors abilities to manufacture chips or some sort of predatory pricing or something like that so news hit of that yesterday and Nvidia stock sold off on that news and then today just a few hours ago it came out that Nvidia didn't actually receive a subpoena from the usdj so you know it appears that there's either some fake news out there regarding Nvidia being you know subena it may have actually not been but you know on the other hand maybe there's some sort of confusion or misinformation the other way maybe Nvidia was actually subpoena and they are denying it now um we will really need to see what happens here but there is a lot of confusion now with you know was Nvidia actually asked to testify um before the Department of Justice you know um we will have to see with this as well what actually happens with Nvidia but you know their earnings Just A Week Ago came out you know better than expected another beat for NVIDIA and the stock sold off on that um and I don't think it really had to do with nvidia's earnings per se I think it may have had to do more broadly speaking just with the rest of the stock market and almost investor skepticism and um you know perhaps a little bit of the Yen carry trade residue kind of still having to be Unwound a little bit um I don't want to blame that for everything but you know with seeing the dramatic selloff we had in August of course not based on company fundamentals but just having to basically unwind balance sheets of a bunch of different overly leveraged hedge funds and other entities that had way overleveraged long um taking out loans in Japanese Yen um and having to unwind a lot of that you know maybe some of that residue is actually still having to be Unwound right now maybe some of them had the luxury of waiting until some of these equities bounced back a little bit before unwinding further you know that's mainly why I think a stock like Nvidia and kind of the broader US Stock Market you look at the S&P 500 and the NASDAQ and everything else out there it all has also sold off you know in correlation with Nvidia in the last week now it appears that some of these stocks may have bottomed um you know yesterday and early today maybe they bounced here um I don't know but um you know it's been another sell-off where I've had the ability thankfully to add again to my semiconductor stocks uh positions just with ETFs um to stay Diversified in that area but that's a sector where I think we haven't seen um the top yet by any means I think it could go a lot further and I've actually been adding to small caps again um you know again just another sector I think has a lot of catching up to do kind of a different story than semiconductors I mean they've definitely been the leaders so far but you know I think the leaders will continue to lead but I do also think that semiconductors can play catchup in a big way so that's how I've personally been using this pullback has just been adding more the last couple of days um you know but we will see with broadcom they're reporting earnings in about a day from now so you know um that could be kind of a major impetus or almost turnaround point for the US Stock Market but if anything I think it could almost be at a turnaround point from here heading higher um just gauging with how much sentiment was reset in the last week um it's remarkable just how quickly people's moods and optimism or pessimism can come and go just in this day and age with social media and Twitter and everything else out there like people will claim that the stock market's crashing and the S&P 500 is only two or 3% from all-time highs so it just goes to show how um instant gratification has become kind of common place now um unfortunately because it tends to work in against people's best interests you know like they may have sold you know in the last few days thinking that the Market's heading much lower when when in fact they should actually be getting back in or you know I'm not saying what they should do but um you know go being a contrarian um going against the crowd would actually suggest oh you should get in if people are starting to be fearful and skeptical and saying that the top is in and everything like that um you know a spoiler alert if it was actually the top you would see the exact opposite sentiment wise You' see everybody being overly bullish um you know you'd see the and greed indices completely opposite where they have been um and yeah you on the financial Twitter space I mean the Bears probably will have gone into hiding at that point when we actually do reach the top they'll be just kind of confused at that point maybe some of them will have flipped to being long actually some of the Perma Bears out there um but you know right now they're still out there alive and well so that seems to suggest at least to me that that the top is nowhere ins site or not close anyways but um I would like to know what all of you think about this in the comment section below kind of touching on a few different things here and there us steel industry you know what can I say it's it's a difficult industry to invest in right now um so dependent on commodity prices and fluctuations in that entire market and just the bureaucracy that exists there is difficult to say the least um Nvidia you know of course a lot of news with that company as always right now and then broadcom coming up earning report um probably looking good on that earnings report as well I have no reason to expect otherwise but we will see I hope to see all of you again