Memory chip stocks plunge on supply glut fears as investors rotate to crypto — s
Thesis
Fear of a memory supply-glut wiped out billions from chipmakers like SanDisk and Micron yesterday. At the exact same time, market data shows a broad shift in investor focus, with capital rotating out of the AI semiconductor trade that dominated 2026 and pouring back into Bitcoin. When fundamental supply fears collide with a massive sector rotation away from a crowded trade, the downside momentum often accelerates. Shorting the weakest memory stocks as capital rotates to crypto captures this double-negative trend.
Strategy approach
Build a rule-based strategy that enters short MU on D1 when the stock closes below its 50-day moving average and Bitcoin (BTCUSD) makes a 20-day high simultaneously. Exit if MU closes above its 20-day high. Use a 7% stop loss and a 21-day max hold.