Public trading strategy
Micron earnings explode 987% but stock dumps with tech — buy the dip on chip wea
Thesis
Micron is caught in a massive wave of tech-selling today, but the company's fundamental picture is as strong as it gets, with earnings expected to rocket almost 1,000%. This creates a classic disconnect: the stock is plunging, but the business is booming. If the panic selling cools off, stocks with this kind of earnings power tend to bounce back the fastest as bargain hunters step in.
Strategy approach
Build a mean-reversion strategy that enters long MU on the daily timeframe when the stock drops more than 5% intraday while the broader semiconductor sector (SMH) is down less than 3%. Exit conditions: take profit at the 10-day moving average, or cut losses with a 4% stop loss. Max hold time of 10 trading days.
Markets and timeframes
MU1D