Broadcom, a company that provides technology solutions, faced tough competition from Nvidia in the field of artificial intelligence (AI). Nvidia's InfiniBand technology was seen as a substitute for Broadcom's main products in AI. In the last quarter, Broadcom earned $9.30 billion, slightly less than the expected $9.41 billion.

However, when we look at the adjusted profit (excluding certain factors), Broadcom performed better than expected, making $11.06 per share compared to the estimated $10.98 per share. So, even though they faced challenges from Nvidia, Broadcom managed to exceed profit expectations.

If I'm an investor, my concern is the Competition from Nvidia: Investors generally worry about companies losing market share to competitors, which could impact future revenue and profitability.

1. I agree on the rotation on small caps though I would expand this to possible mid cap and overlooked large caps.

2. Yes, we can be more bullish as an economy. Especially if they cut rates. Being bullish is also a feeling, it doesn’t always reflect on the chart.

4638 may trade if 4570s hold as support. 4685-95 would be a good take-profit area for an intraday scalp/trade.

4630-38 may offer a rejection. I will look to short this area for a 10-point move or so. Will open up put spreads for February in case our Christmas rally has already given everything it could offer.

Make sure your put spreads are low/mid-cost and fit into your risk tolerance. If wrong and we close today above 4638, we could trade higher into 4700. This scenario is less likely, but you plan for everything as a trader.

Data releases at 8:30 am. Today’s close will most likely give us insight for next week. The following newsletter comes on Sunday. Take care.