Public trading strategy
Super Micro flooding the market with $7 billion in new shares — short the diluti
Thesis
When a company raises billions by selling new shares, it makes each existing share worth a smaller piece of the company—this is called dilution. Super Micro already faced heavy pressure from a broader tech selloff, and the dilution is accelerating the decline. The extra downward pressure makes this a prime candidate for a bearish move as markets digest the new supply of shares.
Strategy approach
Build a mean-reversion short strategy for SMCI on the 4-hour (H4) timeframe. Enter short when the 9-period EMA crosses below the 21-period EMA and the MACD histogram is negative. Exit when RSI(14) falls below 30 or a 7% profit target is reached, with a 4% stop loss.
Markets and timeframes
SMCIH4