Public trading strategy
Tech panic hit a 2-decade high right before Micron saved the day — snap-back ral
Thesis
Just days ago, fear in the tech sector reached a two-decade high as chips sold off violently. Micron's blockbuster report instantly cured that fear, proving the AI demand is real and causing a massive psychological shift. When fear hits extreme highs and is immediately invalidated by strong fundamentals, the market usually experiences a violent short-squeeze. Buying the semiconductor ETF allows us to capture this snapback.
Strategy approach
Build a rule-based strategy that enters long SMH on D1 if the tech fear gauge (VIX tech equivalent) closed at a 1-year high within the last 5 days, followed by SMH rallying >2.5% on a subsequent session. Hold for 10 days with a 4% stop loss.