Monday Morning, Chips Are Bouncing
Friday was one of the worst days the semiconductor sector has had in six years. Broadcom reported earnings and guided AI chip sales to 16 billion dollars, below the 17.2 billion dollar estimate, and refused to raise its full year AI chip forecast. That single line of guidance triggered a sector collapse. MRVL dropped 16 percent. MU dropped 13 percent. The iShares Semiconductor ETF fell 10 percent in a single session. It was a wipeout on top of the two-day selloff I covered in the June 5 watch list.
Monday morning the chips are bouncing. MRVL is up 8.8 percent pre market. MU is up 6.98 percent. SMCI is up 6.77 percent. APLD is up 4.58 percent. This is exactly the mean reversion setup I laid out in the week-ahead preview Sunday. The thesis was cool CPI Wednesday could set up a relief bounce across the whole complex. Today is day one of that potential setup, but CPI on Wednesday is still the defining event.
Alongside the chip bounce, there is a major biotech catalyst this morning. TNGX is up 48 percent on Phase 1 and 2 trial data showing 92 percent objective response rate in pancreatic cancer patients using vopimetostat in combination with daraxonrasib. That is a company-defining data readout. NRIX is up 15.58 percent in sympathy as a BTK degrader biotech in the same oncology space. QTEX quantum is continuing its run from last week.
Economic Calendar Reminder
Monday is quiet with no macro releases. But this week is loaded. May CPI drops Wednesday June 10 at 8:30 AM. Oracle reports Wednesday after the close. Adobe reports Thursday after the close. PPI is Thursday. The full breakdown of every event this week is in the June 8 to 12 week-ahead newsletter. Today is a setup day. Wednesday is the decision day.
What I Am Watching This Morning
The chip bounce is real but I am not chasing it. After a 10 to 16 percent single-day collapse on Friday, a Monday morning bounce is expected. The question is whether it holds. If MRVL and MU gap up and immediately sell back through their pre market levels in the first 15 minutes, that tells me the bounce is a dead cat and Friday's sellers are not done. If they gap up and hold above the open for the first 30 minutes, that is the setup for a continuation into CPI Wednesday.
TNGX is a pure catalyst play. A 92 percent ORR in a late-stage cancer trial is legitimately significant data. This is not a hype move. The question for traders is whether the move is front-run or if there is more to go after the open. Float is 128.95 million, ATR 1.48 dollars. Not a small float runner. This is a real biotech event.
The full setups with key price levels for MRVL, MU, TNGX, NRIX, SMCI, APLD, QTEX, STI, and INFQ are in the premium section. Premium Membership is 10.99 per month. Daily premarket watch lists every morning. Educational only. You trade your own decisions.