Good morning,
It’s been a mixed week so far, with the S&P 500 falling 1.2% in the first two days, but bouncing back yesterday as the Treasury intervened to quell interest rates at the long end.
Stocks were also buoyed by some huge moves in the healthcare sector, which we’ll highlight extensively today.
However, I want to start this week’s report by reiterating and featuring some of the “most vulnerable” charts I see. If there’s any trade that has resumed its weakness in earnest, it’s the AI/semiconductor one, and that remains a big headwind to technology and the major indexes.
We’ll start by reviewing some of the most vulnerable names in: The Mag 7, semiconductors, and cybersecurity.
We’ll also look at:
Healthcare breakouts
Three healthcare plays from our small-cap growers report
Hot List updates
and more!
Most vulnerable: Mag 7
GOOGL: Alphabet
Alphabet is back on the 200-day for the second time in a month. Horizontal support is here as well but notice we’ve already lost the relative 200-DMA. I’m not optimistic it holds.
META: Meta Platforms
META went red-to-green yesterday, but these tests are becoming more and more frequent. Combined with the horrible relative trend, it seems likely that META is going to lose this line.
Most vulnerable: Semiconductors
WDC: Western Digital
Firmly rejected at the 50-day moving average again and has another 23% until next support at the 200-day; more to fill the gap from April and hit horizontal support.
