Hairline Cracks Continue to Form in the Hyperscaler Facade

Add Broadcom to the list of hyperscalers, that highlight the hairline cracks forming in the AI facade. $AMZN, $NVDA, $GOOGL, and now Broadcom $AVGO - down -14% dragging S. Korea down with it. Is this a bearish reversal? Not likely - not in June. Investors don't, "sell May, and go away", and they sure as hell don't sell in June either - especially when IPO fever is being hyped. 

The bubble continues to grow. All we're seeing is the same rotation we've seen over the past few years. This is in part what I coined as the New Market - not long after Covid was used as an excuse to juice the global economy - GDP = Valuations. Crisis driven economics. War economy 2.0. 

Tech sells off? No problem, because today we're going to drive big energy ($EOM), or the big banks ($GS) higher, for no particular reason (just go back and look at Thursday's action, and then watch Fast Money hosts try to cover it with a straight face) 😂.  

Last time I covered Broadcom it was back in Sept. '25, around the time where it peaked out.

A quick refresher directly from that blog [linked]: Comparing $AVGO to NVIDIA: Reads like today's headlines.   

"The stakes are arguably just as high for fellow chip giant, Broadcom (AVGO +9.18%). Broadcom has become such a massive company that it has surpassed Tesla in market cap -- paving the way for a new group of market-leading growth stocks known as the "Ten Titans."

CNBC Fast Money's, fast talkin', Tim Seymour was seen calling this development "Fantastic, and exciting!" Why? Because Wall Street has been looking for new leadership in the AI space, and they believe they've found (engineered) it. That's right, Wall Street insiders have been planning this for some time." [link] : 

As Far as the Broadcom Chart Technicals

I alerted to several likely/ possible outcomes on this earnings report on Wed., saying "the chart is sketchy" - while at the same time, offering some FREE options strategy, and if you sold calls don't forget to pay the lady at the door.

IF $AVGO were lower, I might recommend some calls right here, but they're probably too expensive, and the charts are a little sketchy. If you have money you don't mind losing lol I would buy the 400 strike put (the 50 day is trading @ $395), and the 545 strike call (upside res.)…

— Veteran Market Timer (@3Xtraders) June 3, 2026

What else is still seen trading near the top of a range? The broader market. That's right, when the social media trolls all chime in with the cable news talking heads, trying to tell you that the market just came off a 9 day win streak? NEWSFLASH: There was no bearish capitulation either in Bonds, or Equities. What they're actually reporting is fluff - designed to soothe investors as trillion dollar IPOs come into focus.

$NYA New York Stock Exchange - Still trading in a range. Not winning any trophies.

$NYSE DCS Chart

The Truth is the $SPX rallied over the Memorial Day holiday, but as soon as the adults returned to their trading desk, the low volume, retail FOMO party, came to an abrupt end. In fact if you look at the $SPY there was no win streak.

$SPY DCS Chart not winning any performance trophies 

Giving the talking heads the benefit of the doubt, perhaps they got bored (over Memorial Day/week) reporting on stalled Iran talks, and Trump's ballroom renovations. 🤣

Trading The Bubble Living The Dream 

I've always secretly wished that I could trade into a bubble similar to what we saw in 2000 and this one surpassed anything I could have imagined. But this market environment is growing more treacherous with every day, and now perpetual futures helping to drive trillion dollar valuations... 

Pro Tips: Trade the bubble you have. Chase the rotations. Buy the dips, sell the rips, rinse and repeat. And when the music stops — try not to be one of those helpful souls rearranging deck chairs on the Titanic.      

When Pigs Fly: How the Trillion Dollar Club Became a Value Trap for Investors

Jensen Huang: "Trust me bro" image (screen capture) from an unreputable source (WSJ)

The Trillion Dollar Club Isn't Exclusive Anymore - In fact the list of companies reaching a $1 trillion valuation is growing exponentially. Just this morning, I heard that Jim Cramer's friend, Jensen Huang (not a stock picker/ CEO of NVIDIA 😂) said (wait for it) "Marvell should/could/may/might be the next Trillion Dollar Company", (many sources) and the stock is already up another 20% in pre-market. This kind of sentiment scares me, and this is a club nobody should want to be a part of.  

© 2026 Veteran Market Timer / 3Xtraders.com — Created with help from Grok (xAI

Next in Line for the Crown JP Morgan $JPM - of Course 

Watch for $JPM to break the $1t ceiling before year end (Chart reserved for members).

They Booted Walmart (from the $Trillion Pig Trap), when they determined that the recovery was K shaped, yet the fact that it made the grade (chosen) helps explain why Walmart was driven to such a sky-high valuation in the first place. Also explains why 1 trillion dollar market caps is so conspicuously telegraphed by the live cable news networks. These are the obvious whisper number targets... I should've realized this was a trend, way back when Microsoft hit the $1t number. Today Microsoft trades at a 3t market cap. Stocks being purposely driven to sky-high valuations? uh...yeah

How'd we get here? When the geniuses in Washington DC decided that the best way to deal with a flu pandemic was to print $9T dollars, that money was immediately put to work in where else? - BIG TECH. 

All the names on the list were already well capitalized, so when the Fed finally let its foot off the gas, momentum continued to carry it. Apple,  Google, Amazon, they don't care about money orienting to cure the flu, and they don't need to borrow.... Today there's a massive ecosystem of strategic partnerships fueling a massive multi-billion-dollar investments in which multi-billion-dollar investments where major tech companies, hardware manufacturers, and model developers fund each other. The feedback loop fuels the bubble 

• Nvidia & OpenAI: Nvidia—the leading supplier of AI chips—is heavily invested in AI model developers.
• AMD, Meta & OpenAI: Hardware competitor AMD struck a landmark deal valued at over $100 billion,with Meta, where Meta will buy 6 gigawatts of AI computing power from AMD. In return, Meta receives stock warrants for up to 10% of AMD’s equity.
• Amazon, Google & Anthropic: Alphabet (Google) and Amazon both made massive multi-billion-dollar investments into OpenAI rival Anthropic. In exchange, Anthropic committed to using Amazon Web Services (AWS) for AI training and Google's custom chips and cloud infrastructure.
• Nvidia & CoreWeave: Nvidia has heavily invested in private and public companies within its supply chain and customer network, including pumping billions into AI data center provider CoreWeave. 

I remember - not so long ago when Microsoft hit a $1 trillion market cap on April 25, 2019. It was the third U.S. company to do so (after Apple in 2018 and Amazon shortly after). Fueled by earnings; It closed the day a bit below but crossed it again later.

The 3rd Winning Pig in the series was immediately hyped by - you got it - CNBC [link to article] 

Microsoft hits $1 trillion market cap for the first time as stock jumps on earnings beat

The AI related rotation continues: The screen-shot below shows which names drove markets higher into last weeks close. Today, $HPE, & $MRVL... ( Somebody is making out like a bandit, on this rotation schedule, and it ain't me, I can assure you.

All The Usual Suspects 

Sentiment Indicators Pinned in the Red: 

This is the most extreme bullish sentiment - as expressed by the CBOE options Total Put/Call Ratio (the $CPC) that we've seen since 2021.   

The $VXX & $VIXY ($VIX short term futures) have also traded to new record lows. The market is either pricing in a very dull summer, or investors are ridiculously complacent. Another glaring example of $VIX indices (supposed to be risk indicators) being heavily shorted as usual.  

Read: Technically They Can't Short the VIX. Here's How They Do It Anyway

A Deep Dive into the Most Manipulated Indicator on Wall Street — and the Proof Is Right There in the Charts [link] 

Next up: More cracks forming in the Mag7 floor. Stay tuned.

Take care,

AA