The Big 3: CRM, DG, HPQ

**Marlee Caden** (0:03)
Welcome back to Trading 360 I'm Marlee Caden. It's time for The Big Three. We've got three stocks, three charts, and three trades for you. Rick Ducat, of course, taking us through the charts here to take us through the trades today. Jason Brown, stock market expert at thebrownreport.com and author of Five Year Millionaire. Jason, great to have you back on. And what a day to have you, right? We finally heard from NVIDIA moving to the upside. We got some other really strong tech earnings yesterday from Salesforce and CrowdStrike. How are you looking at the markets right now?

**Jason Brown** (0:33)
Yeah, Marley, always good to be here. Good to see you and Rick. You know, the market is still trading at record high territory. And although we got some great earnings from NVIDIA, I love that it was spread out across sectors in tech. So you had software, which is CRM, who had great earnings. You had semiconductors and chip and video who had great earnings. But then you also had great earnings out of CrowdStrike, which is in the cybersecurity space. You kind of had a broad positive boost in earnings from tech stocks. I also see that as somewhat of the problem. If you look at the rest of the sectors that make up the S&P 500, tech is the only thing that's up today. So I'm bullish, you know, long-term I'm bullish, but I'm cautiously bullish because inflation, interest rates are still in the passenger seat as this car and stock market continues to chuck higher.

**Marlee Caden** (1:21)
All right. And I'm excited because your first pick is actually one of these earnings names having a pretty significant move to the upside today. We're talking about Salesforce. They're up more than 21 percent, a lot of which tied to this quad force concept, which I just love saying, although I want to say it like Mortal Kombat every time. How are you looking at Salesforce right now, Jason? I mean, we've had this considerable move to the upside. Are you expecting us to go higher here?

**Jason Brown** (1:47)
I am expecting us to go higher. You know, for the past year, investors have worried if AI could destroy traditional software companies like Salesforce, AI is going to kill the business. People are going to build their own CRM and all this and that. But major companies don't want to build their own CRM. And even if they do, they like building it on the backbone of a Salesforce and with the customization and that's showing up in their earnings report. So the numbers, when I peel back the numbers and really broke it down, you had their Q2 revenue was 11.35 billion, which is up 11 percent year over year.
And then their agent force and their data 360 approached 3.9 billion, which is up more than 200 percent. But what I think is important about the numbers is that their non-GAAP operating margin was 34 percent. So they had a 34 percent margin on those numbers, which is huge. And then from a technical standpoint, I know we'll get into the charts, but the stock has been trapped below the 200 day moving average since, you know, March of 2025
And this is past week, we popped above the 200 day moving average. But today we got an even further lift off from that moving average, which leads me to believe that the trend is changing. And then the fundamentals from the earnings report is supporting what we're seeing in the chart, which is why I believe it'll go higher.

**Marlee Caden** (3:05)
All right, and the commentary from management saying that none of the dire predictions about the end of software apply to Salesforce.
Looks like the street's buying in today, Rick. I mean, they've pretty much erased all of our 52 week losses. They're mostly flat now over the last year. What are you seeing in the technical setup here?

**Rick Ducat** (3:23)
Yes, and on pace now for a 71% rally off of these lows that we saw relatively recently, near about 146 only a couple months ago at this point. So, a big push to the upside today. So, if we were to digest this move a bit more, 228 is a level that stuck out to me because that's where a gap began in the past, back in January here. So, if we do start to get some kind of pullback, that might be an area where you could possibly look for potential support. But so far, we remain near the highs of the day. It's still, you know, the day is still early. A lot can happen over the course of a trading day. But for now, it's seeming like quite a strong move. Below that as well, 219, another low point before that same gap happened here. And then we had another gap at this level here, our third green line, that also was resulting in eventual highs around 210 Meanwhile, to the upside, we're getting pretty close to an area that stands out as potential resistance. Another gap here that matches up with some subsequent lows and a breakdown point. That stands out near about 252 And then on the road to the 267, which is around where we saw a repeated series of highs previously in this chart here. So when we think about our next chart here, which is our moving averages, we are looking at a group of exponential moving averages here.