Micron crashes 12% in AI panic — scoop up shares at a steep discount
Thesis
The entire technology sector is getting dragged down right now because investors are suddenly worried that AI stocks got too expensive, too fast. But the actual demand for Micron's memory chips remains incredibly strong because data centers desperately need them to run AI programs. When a good company drops this fast just because the overall market is panicking, it often bounces back once the fear subsides. Buying during this steep discount could pay off once the market realizes the company's core business is still booming.
Strategy approach
Build a mean-reversion strategy that enters long on MU on the daily timeframe when the stock is oversold (RSI(14) < 30) and the price touches or breaches the lower Bollinger Band (20, 2). Exit the position when RSI(14) crosses back above 50 or after a 21-day max hold. Use a 5% trailing stop to manage downside risk.