Fairlead's Katie Stockton on market bounce from April lows and where we could still see a breakout

Market Trends & Analysis - The S&P 500 has experienced a nearly 25% increase since its three-month closing lows, marking one of the fastest recoveries on record [1] - A confirmed breakout to new highs has been observed, suggesting continued upward momentum, although with a potential loss of momentum relative to the initial surge [2][3] - Mega-cap technology stocks experienced a push higher at the end of June, potentially resembling window dressing, followed by a rotation where oversold market segments gained traction [5] - The dollar index exhibits a downtrend, having broken through long-term support, while the Euro shows a major breakout, indicating a potential strengthening trend [13][14] Company Specific Analysis - Amazon exhibits a golden cross in its technical charts, coinciding with Prime Day, although golden crosses are noted as poor short-term market timing devices [6] - Madna is identified as a long-term turnaround play, breaking through short-term resistance and presenting a relatively oversold opportunity [7][8] - Nvidia's extended up move continues, approaching a $4 trillion market cap, while Microsoft's market cap is around $3.7 trillion and Apple's is close to $3 trillion [9][10] - Oversold semiconductor equipment names are of interest due to their potential for benefiting from their relatively oversold condition as they approach their earnings reports [11] Investment Strategy - Waiting to add exposure is advised, favoring quality stocks during the next pullback following the S&P 500 breakout [2][7] - Honoring breakouts to new highs is crucial, even when indicators suggest otherwise, emphasizing the importance of price action [3][4][10] - The focus is shifting towards relatively oversold opportunities, particularly names advancing from downtrends and breaking through short-term resistance [7][8] - While Nvidia and Microsoft show strong momentum, the industry is more interested in oversold semiconductor equipment names [10][11]