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.         

P.S. Reminder: Hyperscaler = a fancy name for "big cloud", and a rebrand for worn out Mag7 stocks. [Read: HYPERSCALERS HUSTLE: The definitive CRASH COURSE] 

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