A Good-Looking Broadcom

Broadcom (AVGO, below on the monthly chart, with the quirky ticker after a merger many years ago) reports tonight. The AI/semiconductor play gets overlooked at times solely with respect to being a major market leader since it does, after all, have a market cap north of $1.5 trillion as I write this. But it should be considered much more of a leader these days than, say, Netflix, and even Tesla, too. 

Expectations are high, as they should be. As you can see on the monthly, the stock has backed off recent highs like most tech stocks have of late, with the exception of memory names like SNDK. 

But from a long-term perspective the relevant issue is whether the market still believes rapid growth is ahead, not just behind. NVDA saw a sell-the-good-news reaction last week. And has since been in a bit of a holding pattern.

Thus, AVGO may move the needle, even in the midst of swirling Iran headlines. Either way, we are dealing with yet another historically steep uptrend where any bump in the road of lofty expectations is like to be harshly punished. 

Elsewhere, some segments of commodities are setting back up nicely on the long side. I will updated Members tonight in my video on the full gauntlet.