Public trading strategy

Dow hits records while chip stocks crack — the AI trade is breaking and money is

Thesis

The record-high Dow alongside a falling Nasdaq highlights a clear market rotation away from tech. News of a memory supply glut specifically hammering SanDisk and Micron confirms that the hardware side of the AI trade is facing real, immediate oversupply issues. When institutional money rotates into defensive industrials while semiconductors break down, chip stocks usually have further to fall.

Strategy approach

Build a mean-reversion or breakdown strategy on the Daily timeframe for MU (Micron). Enter short when MU closes below its 20-day low on higher-than-average volume, specifically while the Dow Jones Industrial Average (DIA) is making a new 20-day high in the same week. Cover the position if MU's RSI drops below 25 or after 10 trading days.

Markets and timeframes

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