The Morning Dose

Morning Dose #358: Calm on the Surface, Cracks Underneath: Semis Sell Off as Breadth Breaks Down – Tuesday 10/13/2026

Episode 3585:31

0:005:31

Episode summary

Nasdaq futures sink while the Dow holds steady, as a Chinese memory breakthrough and Broadcom’s CEO spark an AI-complex repricing in Asian tech. Underneath the calm headline indexes, breadth is deteriorating fast and semis are getting hit hard, even as earnings beats and easing yields cushion the broader market. The playbook for the day: patience,...

Chapter by chapter

Split Tape Opens the Day

Nasdaq futures drop sharply while S&P futures barely move, setting up a Cautious Bearish regime call.

AI Jitters Hit Asian Tech

A Chinese memory breakthrough and Broadcom's CEO comments on AI hype send Kospi and Nikkei tumbling overnight.

Earnings and Rates Cushion the Blow

Goldman Sachs and UnitedHealth rally on beats while JNJ and Citigroup get sold despite solid numbers, as easing yields ease Fed concerns.

Breadth Deteriorates Fast

Stocks above the 20-day average collapse from 24% to 17% in a single session, with bears crushing bulls 360 to 91.

Sector Divergence Under the Surface

Energy and Communication Services carry the tape higher while the PHLX semiconductor index drops 2.2% on broad weakness.

Scan Signals and FICO Standout

A dry scan with only 4 continuation signals highlights FICO's strong breakout, tempered by an elevated risk reading.

Action Codes: FHP and COUGAR

Traders are advised to let the first hour play out and only chase A-grade setups like FICO or Goldman follow-through.

Key points

  • The selloff is concentrated in semiconductors and AI-complex names, not a broad market liquidation — S&P futures barely moved while Nasdaq futures dropped 263 points.
  • Market breadth is deteriorating rapidly beneath calm headline indexes, with stocks above their 20-day average collapsing from 24% to 17% in one session.
  • Earnings beats aren't enough to lift elevated-expectation stocks like JNJ and Citigroup, while Goldman Sachs and UnitedHealth rally on strong beats.
  • Easing yields and Fed Governor Waller's framing of the yield surge as growth optimism are providing a relief valve for the broader market.
  • Today's playbook calls for patience — use First Hour Pass to gauge direction and only chase A-grade setups like FICO or GS follow-through.

Ticker charts

FICO

Open in app
SMAUp (filled)Down (hollow)

Use left and right arrows to move through history, plus and minus to zoom, ] and [ to open the next and previous event, Escape to close its card, Enter to open FICO in WaveFinder.

Daily bars through Oct 13, 2026.

GS

Open in app
SMAUp (filled)Down (hollow)

Use left and right arrows to move through history, plus and minus to zoom, ] and [ to open the next and previous event, Escape to close its card, Enter to open GS in WaveFinder.

Daily bars through Oct 13, 2026.

UNH

Open in app
SMAUp (filled)Down (hollow)

Use left and right arrows to move through history, plus and minus to zoom, ] and [ to open the next and previous event, Escape to close its card, Enter to open UNH in WaveFinder.

Daily bars through Oct 13, 2026.

JNJ

Open in app
SMAUp (filled)Down (hollow)

Use left and right arrows to move through history, plus and minus to zoom, ] and [ to open the next and previous event, Escape to close its card, Enter to open JNJ in WaveFinder.

Daily bars through Oct 13, 2026.

C

Open in app
SMAUp (filled)Down (hollow)

Use left and right arrows to move through history, plus and minus to zoom, ] and [ to open the next and previous event, Escape to close its card, Enter to open C in WaveFinder.

Daily bars through Oct 13, 2026.

MDT

Open in app
SMAUp (filled)Down (hollow)

Use left and right arrows to move through history, plus and minus to zoom, ] and [ to open the next and previous event, Escape to close its card, Enter to open MDT in WaveFinder.

Daily bars through Oct 13, 2026.

CEG

Open in app
SMAUp (filled)Down (hollow)

Use left and right arrows to move through history, plus and minus to zoom, ] and [ to open the next and previous event, Escape to close its card, Enter to open CEG in WaveFinder.

Daily bars through Oct 13, 2026.

META

Open in app
SMAUp (filled)Down (hollow)

Use left and right arrows to move through history, plus and minus to zoom, ] and [ to open the next and previous event, Escape to close its card, Enter to open META in WaveFinder.

Daily bars through Oct 13, 2026.

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