Boradcom Blow-Off?

September 4, 2025 By in Artificial Intelligence, AVGO, NVDA, Positions, Semiconductors, SOXS, SOXS-25-10, SOXX 5 Comments

Watch for Tomorrow

As of this post (6:41 p.m., EST), Broadcom (AVGO) is trading up about 11.50-pts at 317.6, after its earnings release, link here.

That level is just above the all-time (regular session) high of 317.35, posted on August 13th.

In the SOXX, Broadcom is No.2, market cap, right behind Nvidia. So, the SOXX, is up as well in the after-hours.

It’s interesting to note that sister-stock, Nvidia has not rallied in sympathy.

In fact, it’s trading slightly lower after-hours.

As the tagline says, we’ll be watching closely tomorrow.

Stay Tuned

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The Danger Point®, trade mark: No. 6,505,279

5 responses

  1. What about the Walmart trade? Do you think it’s done filling the gap from August 21? That gap lower was done on heavy volume too. Probably not the most exciting trade but the tape action is interesting.

    Liked by 1 person

    • Excellent question. Thank you.

      When looking at a high-volume downside gap-fill, for a potential trade, my process is to look to the left of the chart and see if anything similar has happened before (to get an idea of possible behavior).

      In this case the answer is yes, the gap from February 20th, this year.

      Note how price action attempted to rally after the Feb 24th low. Action was not able to get past the initial gap-bar range and reversed on March 3rd, for a two-week decline.

      That move was relatively clean and in a channel for most of it.

      This time, if WMT does head lower, it will (likely) have a different form, maybe a slow grind, or successive gaps lower.

      Depending on what happens tomorrow with AVGO, a higher probability (short) may be in the SOXX, especially if AVGO begins to decline immediately after the open.

      Thank you again,

      Paul

      Liked by 1 person

      • Ok… I can see how it plays games with the gaps. And the August 6 up-candle is filling the gap from February 20. The way I look at it, is she rallied back from the April lows to fill the gap up top and take care of “unfinished business.”

        Liked by 1 person

      • With the ‘bad’ jobs number just covered in today’s update, some sectors may start to decline in the coming week (aviation, semiconductors, transports and so on).

        WMT, just might continue to grind higher to post above the 103-area to take out stops … maybe.

        Note that 99.50-area now seems to be a support level (from Friday’s action).

        It’s also possible WMT is setting up for a new all-time high (possible up-thrust and reversal) as the narrative would be the consumer is strapped, moving away from Target (etc.) and flocking to lower priced WMT.

        I’m keeping my eye on it. 🙂

        Regards,

        Paul

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