Opportunity in A.I. Chips & META After Sell-Off, Healthcare "Overbought"

Market Overview - Recent market volatility has led to significant outflows, with 247 stocks sold, marking the highest outflows since April, affecting approximately 20% of the analyzed universe of 1,500 stocks [2] - The tech sector experienced notable selling, with 68 outflows, while discretionary and industrial sectors also saw significant declines [3] ETF and Crypto Impact - 40% of ETF outflows in the past 6 to 8 weeks have been related to cryptocurrency, indicating a broader deleveraging trend in the market [4] - The current sell-off is characterized by a correction in mega-cap tech stocks, which had previously been resilient [5] Investment Opportunities - Semiconductors have entered correction territory, presenting potential investment opportunities, particularly in companies like Broadcom and Lamb Research [9][10] - Meta has seen a 26% decline from its high, historically providing a good entry point for investors [10] Sector Analysis - The healthcare sector has shown overbought signals, suggesting caution for new investments despite its recent popularity [11][12] - The market is expected to recover, with potential for new highs by the end of the year, driven by continued earnings growth [13][14] Market Sentiment - Current market conditions indicate that only 31% of S&P constituents are above their 50-day moving average, suggesting room for upside potential [15]