Hi traders,
I’m back from my vacation, and I kicked off the day by appearing on Making Money with Charles Payne, where I walked through the names I’m most focused on right now: Broadcom heading into (and now out of) earnings, the relative-strength setups in Microsoft and Apple, a short idea in Meta, and a couple of potential squeeze candidates in Carvana and SpaceX.
Check out my analysis in the clip, and continue reading for more!
Here’s the recap, with the AVGO numbers now in the books.
AVGO: Still One of My Favorite Holdings
AVGO remains one of my favorite stocks, even after last quarter’s ugly -14.7% gap-down that left it parked at the 200-day SMA on the daily chart. Buys at the 200 SMA are generally a fantastic discount, and that’s exactly where we’ve been adding. Heading into this report, the options market was pricing a +/- $24 move. A normal-sized reaction in either direction had a real shot at sending the stock back through critical resistance and toward $400. As noted on the show, I preferred the upside case. Last quarter’s selloff looked like a classic buy-the-rumor, sell-the-news reaction after an extreme pre-earnings rally. This time, the stock came into earnings beaten down, which gave it room to rally. I was betting on a hold of the 200 SMA at $367, but it’s down slightly in the after-hours session.
Let’s look at the results…
Broadcom Earnings are Out
Broadcom reported Q3 FY2026 revenue of $29.6 billion, up 86% year-over-year and a beat versus the company’s own $29.4 billion guide. AI semiconductor revenue came in at $16.7 billion — up 221% year-over-year and 54% quarter-over-quarter, well ahead of the $16 billion outlook. Non-GAAP EPS was $3.32. Free cash flow was $13.7 billion (46% of revenue). Q4 guidance calls for roughly $34.8 billion in revenue, up 93% year-over-year, with AI semiconductor revenue expected to accelerate to $21.7 billion. Hock Tan pointed to continued strength in custom AI accelerators and networking.
However, after hours, the stock is down around $15. While it isn’t the bullish move I was looking for, this is a completely normal move that falls within the expected range priced by the options market. When you see a $15 move to the downside, even though the expected move was $24, it’s basically a nothingburger and just means the company met expectations but didn’t deliver a massive surprise. I remain bullish.
The fundamental story (AI demand compounding, operating leverage, cash generation) is intact. The stock is still sitting near the 200 SMA, which I continue to treat as a high-quality add zone for the long-term book. This is one of my top portfolio holdings, and I still believe adding at these levels makes sense throughout what is historically a weak time for the stock market: September and October.
Mag 7: Long MSFT & AAPL, Short META
Microsoft (MSFT) and Apple (AAPL) both look set to reach new highs. Apple sold off after its report but has recovered since.
Apple – Daily Chart 9.2.26
Microsoft finally delivered a positive earnings reaction and broke the downtrend. Both names are consolidating with relative strength on the daily charts. They’re tradable first to prior highs, then to new highs.
Microsoft – Daily Chart 9.2.26
META is the other side of the trade. After the recent rally, it is now sitting in a better short spot near the 50-day SMA. Combine the lingering fundamental overhang, a bearish pattern, and a daily squeeze setting up, and the $600–$625 zone looks like a high-probability area to get short.
Meta Daily Chart 9.2.26
Squeeze Watch: CVNA and SPCX
On the show, I also flagged two names with squeeze potential: CVNA continues to carry a sizable short float (roughly 10%) and elevated days-to-cover. High-beta names with this much dry powder can move violently when sentiment flips. SPCX (SpaceX) has high short float, a daily squeeze plus a typical IPO recovery. I think it’s getting ready to trigger a Tesla 2.0 short-squeeze move!
CVNA Daily Chart 9.2.26
SPCX Daily Chart 9.2.26
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