Overextended: Tactical Bounce or a Sustainable One?

Investors continued pulling capital away from AI-driven semiconductor darlings and rotated into consumer, healthcare, and industrial sectors.

The semiconductor rout worsened as the Semiconductor ETF $VanEck Semiconductor ETF(SMH)$ tumbled for a fourth straight day, with individual memory leaders $Advanced Micro Devices(AMD)$ and $Micron Technology(MU)$ each plunging over 8%.

Meanwhile, robust Q2 results fueled a massive surge in the Dow. Paint maker $Sherwin-Williams(SHW)$ jumped over 8%, $Coca-Cola(KO)$ rose 5% after raising its full-year guidance, and $Boeing(BA)$ added more than 4% on positive free cash flow data. You could truly call this an earnings extravaganza in value corporations.

High Probability Setups Update

It is only Tuesday, and the targets shared over the weekend in the Weekly Compass continue working exceptionally well. Apple (AAPL) defied the broader hardware slump by climbing to become the first company in history to hit a $5 trillion market capitalization, hitting my first bullish target of 338 and gaining 2.1% this week 🎯.

Yesterday, I highlighted AMD and SMH as high-probability bearish setups from the Weekly Compass that successfully reached their targets. Today, $Apple(AAPL)$ $Wal-Mart(WMT)$ $Costco(COST)$ $Netflix(NFLX)$ have joined them by hitting their bullish targets. This demonstrates how my setups remain objective and neutral (not only bearish or bullish), with every chart analyzed strictly on its own merits:

• AMD: Exceeded its extended bearish target of 469, falling -12.9% this week 🎯.

• SMH: Exceeded its extended bearish target of 534, falling -5.6% this week 🎯.

• WMT: Exceeded its bullish target of 113, up +3.8% this week 🎯.

• NFLX: Reached its bullish target of 73.1, up +4.4% this week 🎯.

• AAPL: Hit 338, bullish +2.1% this week 🎯.

• COST: Exceeded its bullish target of 962, up +3.3% this week 🎯..