SMCI Flashes A Death Cross — Ken Griffin's Bet Is Feeling The Heat

Core Viewpoint - Super Micro Computer Inc. (SMCI) has formed a Death Cross, indicating a deepening downtrend in its stock price, which has led to significant paper losses for major investors like Citadel Advisors [1][5]. Stock Performance - SMCI is currently trading around $31.38, significantly below key moving averages, with the 50-day and 200-day averages near $42, and a 52-week high of $66.44 [3]. - The stock has declined approximately 28% over the past six months and nearly 8% in the last month, despite ongoing interest in AI-related investments [5]. Technical Indicators - Momentum indicators show weakness, with the MACD indicating accelerating downside pressure and the RSI near 32, suggesting the stock is nearing oversold territory [4]. - The technical damage is compounded by Citadel Advisors increasing its stake in SMCI by over 750% to about 4.24 million shares, with an average buy price around $48.86, now resulting in significant losses [6]. Market Sentiment - The formation of a Death Cross alters market behavior, shifting the narrative from buying opportunities to damage control, as rebounds may be viewed as exit points rather than new entry points [7]. - The future performance of SMCI will depend on its ability to stabilize and reclaim key moving averages, as current momentum is broken and large holders face pressure [7].