Public trading strategy
Micron crashes 12% on AI panic — buy the memory-chip leader on the dip
Thesis
The entire AI chip sector is getting hammered, but the fundamental story for memory chips hasn't changed. AI systems require massive amounts of high-bandwidth memory, and Micron is one of only three major suppliers globally. When quality stocks drop this sharply on sector-wide panic rather than company-specific bad news, it often creates an entry point for patient investors. The key is waiting for the selling to exhaust itself before stepping in.
Strategy approach
Build a mean-reversion strategy for MU on daily timeframe. Enter long when price closes above the prior day's low after a 10%+ drawdown from 20-day high, and RSI(14) is below 35. Exit at 8% profit or 5% stop loss. Max hold 15 trading days.
Markets and timeframes
MUD