Broadcom ($BRCM) is trading sharply higher following a better than expected second quarter report. The stock is trading near the $38.00 level in the post market after a powerful 7% surge. BRCM is headed for a huge gap higher open on Tuesday, one that will lift it well above its spike highs in May. A continued recovery rally through the remainder of the week will leave behind a solid base that began to take shape shortly after the company's earnings inspired April 27th breakdown. An uninspiring quarter along with a weak outlook lead to new leg lower. The stock has been on the mend since reaching a bottom in mid June and now may be leaving behind a important base. - G. Morrow