The Scorecard has us at market bullish, and I’ll take it. What I want to point out is where the strength is coming from: energy, financials, healthcare, biotech, materials and industrials. Big tech and the big chips are along for the ride, not driving it. $SMH sits at a 30, $XLK at a 60, and the Big 10 basket is running at just 25% of its best score. That’s a very different market than April or May.
The trade I like most right now is $AVGO for October, bought into the flush. They flipped the MACD negative back in June and this is the first shift back to the buy side since then, so I finally have the squeeze, the structure and the trend together, 15 points out of 15. I’m wrong below $395 to $400, and if the two-day fires with the three-day and weekly behind it, the path runs into $500 and change.
Full read is in the video below.
Stay Focused,
Taylor Horton
Volume is how you tell whether the big money is actually behind a move or just letting it drift. Raghee Horner goes live Wednesday at 6pm CT / 7pm ET to walk through how she reads volume with her Volume Max 2.0 toolkit. If you want confirmation before you chase a breakout, give this one an hour.