Tariff Trouble
This Week in the Market
This week is going to be heavily influenced by prevailing tariff concerns, which are adding a layer of complexity and fear. We don't think the current implementation of tariffs is sustainable. We believe the current administration is using such severe tariffs as a negotiation tactic and will bring the severity of the tariffs down significantly. Otherwise, it's a clear path to a recession in our opinion.
As of Friday, April 4th, the Nasdaq Composite Index has officially entered a bear market, which is defined as a decline of 20% or more from its most recent peak. This milestone marks a significant shift in investor sentiment and reflects growing concerns about several underlying economic and market factors.
Current Trade Idea: NVDA
NVIDIA (NVDA), a global leader in AI and graphics processing, has faced a turbulent start to 2025.
The stock is down significantly, currently trading around $87, reflecting, in our opinion, challenges primarily related to the broader recent market sell-offs in tech.
Despite the pullback, NVIDIA remains the dominant player in AI infrastructure, which we believe is an industry that is not slowing.
We (A4K Capital) are implementing a non-linear share purchase plan, which will be outlined in the next section.
NVIDIA (NVDA) – Non-Linear Accumulation Strategy
Our approach is structured around staged accumulation, increasing size into weakness. Initial exposure is minimal at these levels, with size ramped aggressively as price dislocates downward further. This non-linear allocation optimizes the risk-reward by lowering our average cost basis and maximizing upside on the rebound.
At scale, the position is designed to deliver outsized returns should NVIDIA mean-revert toward prior highs. The strategy leans on patience, discipline, and asymmetric upside—capitalizing on temporary dislocations in a structurally dominant name at the heart of AI and data center growth.
We have been buying below $95, and plan to add significantly upon further weakness. Our current plan is to take profit around the $149.39 technical resistance.
Disclaimer: We own shares of NVDA as of writing this. The content in this newsletter is for informational and educational purposes only and should not be considered financial, investment, or legal advice. A4K Capital and its affiliates are not responsible for any financial losses or decisions made based on the information provided.
