I know all the arguments against this right now, AI bubble (then why is ARM up after announcing their new AI chip?), new MU supply coming online (their own – in 6 months, which should add revenue since they can’t make memory fast enough now), looming recession (a recession is the single largest value case I can make for AI, since it decimates employee costs), GOOG’s new memory reducing algorithm (which I am sure they will not be giving away and thus, really only helps them), etc., etc., etc.
Risks are always and everywhere in the market, and anyone who is investing in oil related stocks right now knows (or should) that at any time, they could face an end of war rug pull. Alternative energy companies found out quickly that they could be rug pulled by Trump policies, as the Feds will be paying Total SA a billion taxpayer dollars NOT to develop offshore wind leases. Autos got EV rug pulled the same way. Every stock has its risks, both known and unknown. This one is no exception.
But the news cycle is a fickle thing. In the end, earnings (especially the momentum of them) matter and this stock is a behemoth in that regard. But even that isn’t my primary motivation here. The market oscillates wildly over the short term – that’s an indisputable fact. I am just here to harvest gains from that. Could MU go down some more? Sure. But 6 day losing streaks are rare and the odds that it goes another 6 are low (not impossible – see my FAST idea for that proof). This is just an odds play that at some point there is a rebound that I can harvest for a quick gain.
Long term, this method works on almost every stock in every trading environment, it’s just a question of how long it takes. I am confident that MU will resolve in my favor fairly quickly. If not, I have a plan for tactically adding and subtracting that works extremely well. I have published 180 ideas here and most have used this. Only 6 of them using this method haven’t been profitable (yet), so I like my odds. Not for nothing, but it dramatically outperforms the market in bearish periods, too. I have a 12% lead on the Nasdaq YTD, for example, using mostly this method.
Aiding me here is also the presence of near term support at the March 9 low.
As always – this is intended as “edutainment” and my perspective on what I am or would be doing, not a recommendation for you to buy or sell. Act accordingly and invest at your own risk. DYOR and only make investments that make good financial sense for you in your current situation.