Leadership Qualities:
Not many names have kept pace with NVDA in the semiconductor space during the last 6 months but the chart here shows that Broadcom (in pink) has certainly done so. The daily chart below does display some wide and loose overall trade, which tends to be bearish, but PRICE action is not disappointing. It is right at a cup with handle breakout from two weeks ago, and we know the best breakouts tend to work right away, but this is holding firm in the area, and look for this to make a push toward the 200 level into year-end. While the SOXX is 15% off its most recent 52-week highs, AVGO is only 4% off its own annual peak and its MONTHLY chart is a picture of health, even as it trades at a white-hot 90 RSI. Notice though it has been at this altitude several times over the last decade and it did not deter sturdy PRICE action for long. It is a model of consistency, declining just 3 months in the last 2 years, not a typo, and the accumulation (strong volume) has been exceptional over the timeframe. This is a hedge fund hotel that one should feel very comfortable residing in.