Why Nvidia’s stock split and pullback aren’t necessarily buy signals

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Why Nvidia’s stock split and pullback aren’t necessarily buy signals
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When a narrative takes hold of the public imagination, it’s often a sign that the rally may be getting long in the tooth

Now that shares of Nvidia Corp. are well off their highs and the stock has split 10-for-one, do you think this is a good time to get in?at this point. The artificial intelligence story that propelled the chip maker’s stock to a gain of more than 200 per cent over the past year is now familiar to everyone, from billion-dollar hedge funds to retail investors with a few hundred bucks to spend. .

The BMO S&P 500 Index ETF , iShares Core S&P 500 Index ETF and Vanguard S&P 500 Index ETF are three worthy examples. Each ETF charges a management expense ratio of just 0.09 per cent and has a weighting of roughly 30 per cent in technology stocks, with the top three constituents – Microsoft Corp. , Apple Inc. and Nvidia – collectively accounting for about 20 per cent of each ETF’s total assets.

While looking at insider trading data on The Globe and Mail website for Baytex Energy Corp. , I noticed that some individuals bought the shares at a lower price than was listed on the stock exchange for that day. For example, on May 14 Baytex chair Mark Bly acquired 15,000 shares at $3.42 each and chief executive officer Eric Greager purchased 370 shares at virtually the same price. Yet the stock price ranged from a low of $4.62 to a high of $4.75 on the Toronto Stock Exchange that day.

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