Stock Trends
Everything is AI
Good morning,
Okay, today’s title is a little hyperbolic. But, one of the big observations from our “Small-cap growth ideas” report two months ago, was just how many companies are benefiting from the semiconductor/data-center buildout, and few seem like technology companies at all.
We’re seeing that correlation play out in both directions recently, as many of those companies, and some much-larger industrial bellwethers, are correcting with the memory trade.
We’ll start today by highlighting a few of the most important, as well as key levels that could separate a routine pullback from more-concerning tops.
We’ll also look at:
Energy long ideas
Discretionary coming under pressure
Healthcare
Two REITs ready to break out
Hot List updates
Key levels to watch on Alphabet and Tesla today
and more!
Everything is AI
Caterpillar bouncing at the neckline (just like DRAM)
Already had a 20% drawdown (using intraday levels). And sure, the chart isn’t broken yet. But if CAT can’t get above the 50-DMA (which has notably flattened, unlike other pullbacks below), this is going to look a lot like a right shoulder.
Just a routine pullback for United Rentals?
Right now, the industrial bellwether from our S&B 20 Cyclicals basket deserves the benefit of the doubt. But a break of $980 would be a real warning sign.
GE Vernova falls 8% following earnings
Lower high in relative strength and, at least the potential for, a double-top. All eyes turn to $856 where the 200-day will try to help the trough hold. The bull case here is probably a long sideways consolidation.
