Micron lands massive AI deal right before earnings — ride the memory chip rally
Thesis
Micron is riding a massive wave of AI demand, and analysts believe their upcoming profit report will be spectacular. When a company announces a major partnership right before earnings, it often signals that management feels confident about their numbers. Because the entire memory chip sector is moving together, buying the strong momentum in related companies like Western Digital and SanDisk spreads the bet out and captures the broader industry excitement.
Strategy approach
Build a rule-based strategy that enters long MU, WDC, and SNDK on the daily timeframe when the stock price is above its 10-day simple moving average and the RSI(14) is between 50 and 70. Exit the trade if the stock closes below its 10-day simple moving average, or set a 5% trailing stop loss.