市場新聞與洞察

NVIDIA delivered a resounding answer to AI bubble concerns this morning, reporting third-quarter earnings that surpassed Wall Street expectations and signalling sustained momentum in AI infrastructure spending.

The chip giant posted adjusted earnings of $1.30 per share on revenue of $57.01 billion, beating analyst estimates of $1.26 EPS on $54.92 billion.

Revenue surged 62% year-over-year, with the critical data centre segment delivering $51.2 billion against expectations of $49 billion.

More importantly, NVIDIA projected fourth-quarter revenue of approximately $65 billion, significantly above the $61.66 billion consensus, indicating demand for AI accelerators shows no signs of cooling.

The company's next-generation Blackwell architecture is seeing unprecedented demand from cloud providers building out massive AI infrastructure. CEO Jensen Huang simply stated: "Blackwell sales are off the charts, and cloud GPUs are sold out."

NVIDIA shares had declined nearly 8% in November as prominent investors raised concerns about AI valuations. Peter Thiel's Thiel Macro completely exited its approximately $100 million position, while SoftBank divested $5.8 billion in holdings.

However, the continued capital expenditure by Big Tech customers — Microsoft alone spent nearly $35 billion in its most recent quarter, with roughly half allocated to chips — suggests the buildout phase is far from complete.

Beyond data centres, NVIDIA’s gaming revenue reached $4.3 billion (up 30% year-over-year), professional visualisation generated $760 million (up 56%), and automotive/robotics sales hit $592 million (up 32%).

The near-term trajectory remains strong, with the company continuing to capture the lion's share of AI chip demand in a market showing no signs of saturation.

Experts Split on Bitcoin's Trajectory

Bitcoin is at a vital inflection point, trading around $92,300 after briefly dipping below $90,000 for the first time in seven months.

The pressure stems from retail selling, leveraged trading liquidations, and institutional positioning, creating an environment where experts are split as to whether this is the end of the cycle or just a healthy pullback.

Glassnode data show approximately 65,200 BTC—valued at roughly $6.08 billion—was sold at a loss within 24 hours, indicating capitulation among short-term holders who bought near recent highs.

Yet, while retail investors panic-sell, wallets holding at least 1,000 BTC have increased to 1,384, a four-month high. Over 102,000 whale transactions exceeding $100,000 and 29,000 transactions over $1 million have been made this week, potentially making this the most active whale week of 2025.

This accumulation pattern during fear-driven selloffs has historically preceded medium-term recoveries (though past performance offers no guarantees).

For now, the market remains on a knife's edge, with high volatility seemingly the only certainty.

Fed Still Faces Divide as Data Starts Flowing

The Federal Reserve stands at a crossroads heading into its December 9-10 meeting, with internal divisions threatening to derail what was considered a near-certain third consecutive rate cut.

The released minutes of the October FOMC exposed strongly differing views within the Fed about the December policy decision, with many suggesting no more cuts are needed through the end of 2025.

Complicating things further is the data pause from the recent 44-day government shutdown. The Labor Department announced that October and November employment data won't be released until December 16 — six days after the FOMC meeting concludes — depriving the Fed of crucial labor market information.

Fed Chair Jerome Powell stated that a December rate cut is "far from a foregone conclusion," and there is "a growing chorus" among officials to "at least wait a cycle" before cutting again.

This represents the highest level of internal discord during Powell's tenure, with predictions of potentially four or five dissents at the December meeting — the most since 1992.

The December meeting will reveal whether the Fed can maintain the credibility needed to navigate a U.S. economy caught between stubborn inflation and (seemingly) weak labour market.

Every data release and Fed official comment between now and then will move markets as investors search for clues about the Fed’s next move.

A market bubble occurs when asset prices rise far beyond any reasonable valuation.

It is driven by speculation, emotion, and the belief that prices will continue rising indefinitely. 

For traders, the challenge is more about finding a way to manage a bubble, rather than just identifying that one exists.

By their very nature, bubbles can persist far longer than any logical analysis suggests. There are opportunities as they develop, but timing their peak is virtually impossible. 

Understanding their characteristics and having a systematic way of managing bubbles in your trading strategy is worth considering for any trader.

What is a Bubble?

Market bubbles have distinct features that separate them from normal bull markets or even overvalued conditions for a particular asset:

Dramatic Price Appreciation Disconnected From Fundamentals

In a bubble, traditional valuation metrics become meaningless. 

Company or asset fundamentals that usually matter to market participants are ignored in the hope of what might be.

Cash flow, profit margins, competitive positioning, and (in some cases) producing revenue may be dismissed. 

Widespread Participation And "This Time Is Different" Narratives

Bubbles require mass market participation. 

When every headline you see or article you read references "this time is different," or "the old rules don't apply anymore," it is a sign that the collective psychology has shifted from normal caution.

Social media may begin to explode with ever more frequent success stories, and for the individual trader, the fear of missing out becomes increasingly overwhelming.

Credit and Leverage Fuelling Demand

Bubbles are typically accompanied by easier credit conditions. 

When interest rates are lowered and investors are confident in general economic conditions, any spare cash is put to work.

In stock or other market bubbles, you may see retail traders maxing out credit cards to buy call options, with the put/call ratio becoming increasingly distorted.

This leverage often amplifies the rise and the eventual fall, making the risk even more acute and potentially damaging to trader capital.

Vertical Price Charts in Final Stages

One of the telltale signs of a bubble's final phase is a parabolic price chart.

Prices seem to go up daily, and every minor pullback is short-lived (creating more buying pressure). 

This is the euphoria stage. It is where the greatest danger is.

The fear of missing out on further moves is at its highest, and a logical willingness to take profit off the table diminishes in the minds of ever more excited traders.

New participants may continue to enter solely for the way the price is appreciating. Entering into the move only understanding that what they are buying is going up, so they want to join in too.

Bubble vs. Overvalued: Key Differences

Not every expensive market is a bubble. Several characteristics distinguish a bubble from a simpler and far less dangerous overvaluation:

Elevated Valuations With Reasoned Fundamental Justification

An overvalued market has stretched valuations, but can point to real supporting factors (at least to some degree). 

Examples include strong earnings growth, low interest rates, disruption in service or productivity, and providing genuine temporary value.

Even if prices respond to less obvious immediate influencing factors, such as international events, policy changes, and supply issues, the fact that some factors justify continued positive sentiment (even if somewhat unfulfilled) is a positive sign.

Linear or Steady Uptrend

Overvalued markets tend to grind higher with a more sustainable trend rather than a vertical spike. There are normal corrections along the way, even if the highs and lows of a fluctuation are higher. 

Reasonable Participation Levels

There is evidence of institutional investors buying on any dips, but common retracements last days or even weeks.

Retail participation exists but isn't frenzied and plastered all over social media every day or referenced in mainstream media consistently.

Some Scepticism Still Exists

There will be some legitimate and contrary opinions about valuations. Major financial media will present both bearish and bullish cases when a stock is discussed.

Trading Strategies for Potential Bubble Management

Here is the scenario: You bought early in the up move, you are now in profit, but some of the bubble signs are beginning to show up in your thinking.

Tiered Profit-Taking Strategies

Don't try to pick the top. As an alternative approach, begin to scale out systematically with partial closes. This will alleviate the potential for FOMO creeping in. 

You could stage this with set points, e.g. sell 30% when you've doubled, another 30% when you've tripled, 20% when conditions clearly show evidence of entering bubble territory and, having banked a substantial profit already, you keep the final 20% with a trailing stop for the final run if it happens.

Trailing Stops With Wider Bands to Accommodate Volatility

Let’s assume you see the merit in some form of trial stop. In bubble conditions, normal stop distances will get you whipsawed out. Use percentage-based trailing stops or ATR multiples with enough room to accommodate bigger intraday moves.

For example, if your norm is to trail your stop 1.5 x ATR behind price at the end of every candle, then in increasingly volatile conditions during a parabolic move, consider 2,5 x ATR to allow room to move while still offering protection against price collapse.

Reduce Position Sizing and Leverage

The temptation in bubbles is to maximise gains by increasing your margin and entering more and more positions in one asset. 

High leverage and significant single asset exposure in bubble conditions is a potential death sentence to trading capital. 

Recognising the added risks you are contemplating before entry is critical. Combining this with an approach that reduces position sizing and increases margin requirements is consistent with good trading practice as risk increases.

Planned and Rigid Exits

Before buying, you should have already made decisions on what exit approaches you should take and the parameters at which they will be executed, 

Having the exit plan as you enter can limit the chance of getting trapped by greed. Neglecting this and focusing on the opportunity alone can be disastrous.

Never Assume You Can Time the Top

It is usually a big mistake if you believe you will recognise the exact top and exit perfectly. Let’s be frank, even if you hit it lucky once, you won't be able to every time — no one does.

Recognise Behavioural Biases That May Affect Your Judgment

Bubbles can create powerful psychological forces.

Anchoring bias may mean that you fixate on peak prices. Confirmation bias makes you seek information supporting your bullish view and ignore opposing evidence. Recency bias makes you believe the recent trend will continue indefinitely. 

The indisputable key to any bias management is awareness and honesty that some markets may just not be for you (or if they are, to proceed with extreme and continuous caution).

Psychological Preparation for Rapid Reversals

Mentally rehearse the worst scenario and clarity of planned action, e.g., “if it drops 10% in three days, I will ….”.

Having thought through your response and armed with unambiguous exits in advance will make execution easier when emotions run high and begin to dominate. 

Final Thoughts

Extreme valuations, little fundamental underpinning, parabolic price action, and universal bullishness should be part of your bubble identification checklist and flag that your bubble action plan should be implemented.

If you are already in, or tempted to be so, then approach bubbles with honesty, awareness of your trading self and extraordinary discipline to follow through, as predicting what and when things may dramatically turn is close to impossible. 

Never forget you are not smarter than the market, but you can (potentially) be smarter than many traders by planning and doing the right thing.

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Last week brought some relief as markets found support following the retreat from record highs... with the recent crypto crash being a notable exception.

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Bitcoin Breaks Below $100K

Crypto markets are under significant pressure after Bitcoin crashed through the psychological $100,000 level. Currently trading around $94,650, Bitcoin has fallen to its lowest point since May. The $94,000 level appears critical; if it fails, we could see Bitcoin slip back into the $80,000 range and potentially enter bear market territory.

Fed Minutes and Rate Cut Signals

The Federal Reserve minutes are due this week, and they could provide crucial insight into the timing of rate cuts in 2026. Markets have already priced in a likely December cut, but the January 2026 cut that was initially expected may be in jeopardy. Pay attention to the Fed speakers scheduled throughout the week—their comments could help clarify the path forward on monetary policy.

Strong Earnings Season Winds Down

We're in the final stretch of what's been an exceptionally strong earnings season, with 82% of companies beating EPS expectations and 76% surpassing revenue forecasts. This week features some heavyweight reports, most notably Nvidia reporting Wednesday after the bell. Major retailers Target and Walmart will cap things off, giving us a clear picture of consumer health heading into the holidays.

Market Insights

Watch Mike Smith's analysis for the week ahead in markets

Key Economic Events

‍Stay up to date with the upcoming economic events for the week.

The longest government shutdown in US history has finally ended after 42 long days.

After a month and a half of political theatre, seven Democrats and one independent broke ranks and voted with Republicans to pass a stopgap measure. The Senate went 60-40, the House followed 222-209, and Trump signed it hours later.

The legislation includes three-year appropriations for the Agriculture Department, FDA, military construction, veterans affairs, and congressional operations, along with restoration of pay for federal workers and reversal of Trump administration layoffs through January.

However, the most contentious issue, healthcare subsidies, has been kicked down the road to a December Senate vote.

COVID-era ACA subsidies expire at year-end. When they do, premiums for the average subsidised household will more than double from $888 to $1,904 per year, with an estimated 3.8 million people losing coverage entirely.

If the December vote fails, which is likely considering how far apart the two parties are on the topic, we could see a new shutdown begin in January.

What Happens Next?

This Week:

• Federal employees return to work.
• Paychecks start flowing again.
• SNAP benefits get restored for 42 million people, though heating assistance won't come back for weeks.
• National parks reopen.
• Airports start to go back to normal.

December:

• Senate votes on healthcare subsidies. It will probably fail.
• Premium notices continue to be sent showing 2026 costs doubling.

January 30:

• Government funding expires.
• We do this whole thing over, except now the healthcare subsidies have already expired.
• If Republicans and Democrats remain divided on budget priorities, another shutdown will likely begin.

By the Numbers:

Over the past 42 days, approximately 750,000 federal workers have been furloughed. Another two million worked without pay. Over 42 million had their food assistance delayed. And the FAA cut flights by 10% because air traffic controllers stopped showing up to work.

Further concern is the "data blackout" that has hampered Federal Reserve decision-making. Key economic indicators, including jobs reports, were suspended, leaving the Fed blind during an active rate-cutting cycle.

Meanwhile, separate analyses from Challenger, Gray & Christmas showed layoffs surged 183% in October, which would make it the worst October for jobs since 2003.

The Bottom Line

Today’s deal ended the shutdown, but it didn’t actually solve anything. The deal essentially kicks the can down the road to January while leaving the healthcare crisis unresolved.

With both parties divided on healthcare and spending priorities, and Trump lacking a comprehensive plan to address rising premiums and high deductibles, a resolution in the December vote seems unlikely.

If no compromise is accepted by the time Government funding expires on January 30, another shutdown is almost inevitable.

Impact of Australian Jobs Reports and U.S. Shutdown End on the Aussie

The decision to scale (increase the traded lot size of a specific EA) should be based on statistical evidence that indicates your EA has the potential to perform to certain expectations. 

Equal weight should be given to the decision to scale, as to the initial decision to deploy an EA. This guide provides an indicative approach on how to put together and action your scaling plan.

Before You Start Your Scaling Plan

Important: this should be an individual plan that is consistent with your personal trading objectives, your EA portfolio, and your personal financial situation (including account size).

We are going to use a starting lot of 0.10 per trade in the examples in this document —you want to adjust this based on your own risk tolerance.

Whatever your chosen lot size start point, EA scaling should be a pre-planned incremental approach, scaling stepwise based on performance metrics you are seeing in your live trading account.

You should also have assessed the current margin usage of your EA portfolio exposure to ensure that any scaling and related increased margin requirements are appropriate to the size of your account. 

Suggested Scaling Baseline Requirements

Scaling should only be performed when your EA is performing to what you deem to be a good standard. To make this judgment, you need to set some minimum performance standards.

The past performance of your EA is not a guarantee of future performance. If market conditions change, you must remain vigilant and continue to measure performance on an ongoing basis for every live EA you have.

You need to define the key metrics that are important to you. 

Two important metrics to include are:

• The number of trades: to provide some evidence of reliability 
• The period of time: to have had exposure to at least some variation in market conditions

Example of how you may lay your metrics out in a table:

Some may choose to include proximity to original expectations of other metrics, such as minimum win rate, average profit in winning trades, and average loss in those that go against you. 

It should only be after your metrics are met that lot scaling begins on any specific EA.

Lot Size Scaling Ladder

Below is an example of a performance-based scaling plan assuming a 0.10-lot baseline.

Again, this is indicative. It provides a framework with clear review dates and an approach that illustrates incremental scaling. You must still define a regime that is right for your specific trading objectives. 

Risk Guardrails

It is vital to keep an eye on your general account risks and have limits in place that guide your EA use.

Such limits must be constant across all stages of scaling and referenced beyond the risk of a single EA, but to your portfolio as a whole.:

Per-Trade Risk (Nominal)

Trade risk for any one trade should be seen in the context of account size and the dollar risk based on the risk parameters you have set for your EA. 

Specify a maximum percentage of the account balance — a $200 loss is more impactful on a $1000 account compared to a $10,000 account. 

Stick to what is right for you in terms of your tolerable risk level based on your trading objectives and financial situation. A common suggestion is a 1-2% risk of account equity per trade. 

Total Open Exposure

Specifying maximum exposure in the number of EAs open at any time and those that use the same asset class is important for overall portfolio risk management. 

There are tools you can use to monitor exposure risk generally, as well as those that can be used to indicate single asset exposure.

Margin Usage

It is always desirable that your set exit approaches and parameter levels are what your exits are based on. It should not be because your margin usage has meant you have moved into a margin call situation. 

Specify a minimum level to adhere to and make sure that your account is sufficiently funded. If volatility or slippage rises (e.g., news events or illiquid sessions), reduce lot size temporarily.

Scaling Psychology – Managing “Big Numbers”

As lot sizes rise, your emotions may respond accordingly when you see the larger dollar amounts that your EA is generating. 

If you are used to seeing an average profit of $100 and average loss of $50, and suddenly you are seeing significantly bigger numbers, it creates an emotional challenge where you may be tempted to do a “discretionary override”. 

Although there are situations, such as major market events, overexposure in a specific asset, or VPS or account system problems, where such intervention may be considered, generally this would distort the actual performance evaluation of your EA and is not encouraged (unless it is pre-planned).

The table below presents some of the generally accepted challenges and offers suggestions on how to manage them. 

Your Plan Into Action…

In practical terms, your scaling plan should have two components:

1. The key parameters for action on your chosen key metrics
2. Specified periodic review times to make your next scaling decision

This is not a race. Having systems in place facilitates creating the opportunity that scaling brings while still mitigating the risks.

Markets retreated last week, pulling back about 2.5-3% from record levels. While the decline is modest, it is marked by several headwinds that could create further pressure this week.

Government Shutdown Reaches Historic Length

The ongoing shutdown has now reached record duration, and there's still no clear resolution in sight. Healthcare remains the primary sticking point between the two sides. Some reports suggest potential progress, but the jury's still out on whether any deal will materialise or gain bipartisan support before the Thanksgiving holiday season.

Key Economic Data May Be Delayed

The shutdown's impact extends to data releases. Market-influencing government reports, including jobs numbers and CPI data, may be delayed this week — CPI is still technically scheduled, but the shutdown could affect its release. This data delay will make it harder to gauge the economy's true direction and could inject further volatility into markets.

Earnings Season Continues to Impress

Despite these macro headwinds, corporate America is delivering exceptional results. We're seeing an 82% EPS beat rate and 77% of companies exceeding revenue expectations. While we're in the final 10% of S&P 500 reports, some important retail stocks are still due. These consumer-facing companies could provide valuable insights into spending patterns and economic health.

NVIDIA Tests Critical Support Level

AI stocks are facing pressure, with NVIDIA testing a key technical level around $180-$185. The stock experienced five consecutive days of losses before bouncing strongly on Friday with a major wick rejection. If support at $180 breaks, we could see a drop to $165. However, Friday's bounce suggests a possible retest of $193. This is a crucial moment for the AI sector leader, and its direction could influence broader tech sentiment.

Market Insights

‍Watch the latest video from Mike Smith for the week ahead in markets.

Key economic events

Keep up to date with the upcoming economic events for the week.