Stock Trends

The boys are back in town

Good morning,

Over the past few weeks, I’ve noted how strongly growth has been taking back leadership from value. And we’ve been tracking one technology sub-group, software and cybersecurity, especially closely.

But one group we haven’t talked about, because it hasn’t shown much life, has been:

Semiconductors.

And luckily for market bulls, that has changed in a big way this week.

Nvidia is up more than 15% the past three days, breaking its downtrend line from the January all-time highs and taking out its 200-DMA in the process. And it’s not the only semiconductor showing improvement.

Today, we’ll look at key levels for Nvidia, as well as peers with catch-up potential.

We’ll also review:

• Hot List stocks

• Big wins from the aerospace and defense ideas featured on April 24

• More losses in the healthcare sector

• Mag 7 breakouts

• and more!

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The boys (semis) are back in town

NVDA takes out the downtrend line

Nvidia is up 15% this week, and with the broad market firming and NVDA finally showing relative strength, there’s good reason to think we’ve seen a durable low. However, $144-$152 is a substantial resistance zone, and with the stock already overbought, we likely see a pause and consolidation before the stock has a chance at all-time highs.

Broadcom was already leading

AVGO is showing some of the best relative strength in the space and is still up 75% over the past year and positive YTD. $250 is the big resistance level here but if semis continue to work, I expect Broadcom to be at the head of the pack.

AMD makes its first 3-month high since July 2024

AMD broke out above horizontal resistance yesterday, making its first appearance on the 3-month high list since July of last year. There’s a lot of potential with the stock still in a 48% drawdown but overbought going into a downward sloping 200-DMA is not the place to be initiating a position. Put it on the watch list.

Same message with other laggards like Micron and AMAT

To be clear, I think these turn into buying opportunities. If we’ve seen the lows for the market, the lows should be in for semis. But Micron and AMAT are also overbought and up into their 200-day moving averages, which have been proven resistance for both.

KLAC is a top tactical trade idea