MU trade ideas
Long on MU MU broke the 20sma and then broke the 50sma after a solid downtrend. Seems to be reversing. Got in on the engulfing candle on Friday.
MU: All American Underdog ComebackMicron is just screaming out to the value investor in me, and I've been waiting for their earnings call. Apparently a lot of others have, too, and I suspect that the news is no where near as dire as predicted with a resurging confidence in their future revenue growth potential from recent acquisitions of 3D development processes that they developed in conjunction with Intel from Intel thereby effectively eliminating the potentially most intimidating 800-lb gorilla competitor in the market for a Go-To Market strategy. With the recent price crash in semiconductors that's only recently gaining steam again with some good earnings in the semiconductors industry as well as soaring prices on AMD with the news that Google will be launching a cloud gaming service with their hardware alleviating the pressure off them from declining prices from cryptocurrency mining crashing out in the past couple of years.
That's enough of the engineer in me talking about the sector he works in, so its time to get to the technicals. MACD is rising and has been starting to break into a potential crossing of the histogram into safe territory, and I'm confident that the news in their earnings will be the nudge investors need to start buying back in. Desk traders are also going to start buying up a fair bit because they're still quite profitable and will continue to be, and they're in a magical P/E ratio of 3.3 that makes me salivate with the thought of possibly riding that train on up to somewhere closer to the industry average of 42.75. RSI is rising above 50, but careful investors may with to wait for additional confirmation or even until after the earnings call before going long depending on their risk profile. ADX is showing a falling negative price trend with the +DI and -DI contending, and the earnings call this week will cement the winner for a while to come. MU closed above the 20 day SMA with a strong upward momentum after bouncing off the bottom Bollinger Band in the last couple of weeks, and I anticipate it rallying on earnings with the long term 50 day SMA accelerating to cross over the 200 day SMA before the pre-Summer market lulls set in this year.
If you're like me, I always enjoy a good story about an American underdog that's beaten down in the media and underestimated pulling ahead of everyone's expectations, and that's a very real possibility here for the long term trend.
MU EarningsSo I made some money flipping GM puts this morning, I decided to go and buy MU puts with the profits. WIth DRAM prices down significantly since last earnings, I expect their guidance to suck.
As you guys already know, earnings are a crap shoot. Keeping to a small amount on this. Safer play would be to go with April puts on some other chip stock or SMH (sector ETF).
$MU to the moon. The semi business has bottomed! LONG TERM TRADE. ONLY FOR THE PATIENT.
On Thursday, $AVGO (Broadcom) earnings call called for a bottom in the semi business in Q2. With that being said, $MU is looking like a good setup for a long term swing trade. In December, we see micron bounced at $28 and rallying to $43. Now we are currently sitting on the 9 day avg line (1 week time frame). I have chosen the 1 week time frame to show you the close up price action. If we look at the monthly time frame, we see the Ichimoku cloud showing we're still in a bullish trend (above green cloud).
What to watch (1week time frame):
-Watch for price to hold above 9 day avg line or 26 day avg line if falls below (shown above).
-Micron will be reporting earnings on Wednesday after market close. I believe it will pop but staying cautious.
This is an analysis, not an investment advice.
MUDRAM index keeps falling, and I think MU double bottoms. Not really a Motley Fool fan, but this is a good article:
www.fool.com
Guidance will suck (like SMTC). That may be what causes the market to dip next week, along with the Fed. Also watch for FedEx earnings (though their issue is mainly costs, not revenue).
Should have bought some puts this morning, but I'm expecting a rally Fri and possibly Monday.
mu-premium playvolatility is very rich in mu both on a IV percentile and IV rank. best way to take advantage is by raking it in. via credit spreads. in this play obvious trend support.
im wanting to make an iron condor, but i feel its fairly obvious there will be a bounce based on net skew.
so here are my targets. since the skew is equally weighted but near a major trend support ill begin my iron condor with a bull put spread.
margin of saftey based on implied move of april 5 expiration (+-5.10)
ive entered into a bull put spread skewed bullish 35.5-36.5 for .26
from here time to wait and allow the bounce to happen. im looking to leg into the 44-45 call spread for .26
Chip stock day trades - MULooking for ways to make money in what I expect to be a choppy market, Here's an idea....
Chip stock daytrade, check the MFI, buy when it's oversold, hold for day or 2. Works with AMD as well, you may need to adjust the MFI setting on other stocks. Default is 14.
Huge potential on MU!!!MU is about to hit 100 day MA at around 37.59 and there is a Fib resistance lvl at ~37.0
Expect it to run up before March 20th ER. RSI is also falling and is currently at the key mark of 40 for oversold.
1st TP - ~41.5 2nd TP - 42.18 3rd TP - 43.8
1st SL - 37 2nd SL - 34.11
MU PennantDecision time tomorrow, futures so far would indicate down, but who knows. Just something to watch for tomorrow, might be worth a quick play.
