Public trading strategy
Memory chip stocks rallying into earnings — momentum play on Micron and Western
Thesis
When a whole sector's stocks climb together right before a major company reports earnings, it usually means investors are expecting good news. If Micron announces strong results or gives a positive outlook, the excitement could spill over and push the other memory chip stocks even higher. This creates an opportunity to ride that upward momentum.
Strategy approach
Build a rule-based strategy that enters long MU, WDC, and SNDK on the 1-day timeframe when the stock price is trading above the 50-day moving average and the 14-day RSI is between 55 and 70. Exit the trade if the stock closes below the 20-day moving average, or set a 10% profit target. Limit the hold to 10 days.