MU
MU Rising WedgeMU Idea
A clear rising wedge has formed between the dominant trendline and another trendline below this line
A inverse H&S has also formed with a possible right shoulder already printed, a possibility that it is a fake and another will be printed as a result of the rising wedge.
THE WEEK AHEAD: MU, FDX EARNINGS; XOP, IWM, EWZEARNINGS:
MU (36/64/11.7%) announces earnings on Monday after the close. Pictured here is a 19 delta short strangle in the July expiry, paying 1.55.
FDX (46/59/11.4%) announces Tuesday after the close, with the 20 delta July 17th 115/147 paying 4.56.
EXCHANGE-TRADED FUNDS ORDERED BY RANK AND SCREENED FOR 30-DAY >35%:
EWW (59/44/12.6%)
EWZ (47/63/17.7%)
XLE (45/52/16.0%)
GDXJ (43/60/17.7%)
SMH (37/42/12.0%)
GDX (36/45/14.5%)
XOP (32/70/20.2%)
USO (13/67/16.7%)
Would probably go out to August here (54 days) ... . Looked at through the lens of what the short straddle is paying as a function of share price, it looks like I should be selling premium in XOP (20.2%), followed by EWZ (17.7%) and/or GDXJ (17.7%).
BROAD MARKET ORDERED BY RANK:
IWM (57/45/12.7%)
QQQ (38/32/<10%)
EFA (37/29/<10%)
SPY (37/34/<10%)
Small caps continue to be where the juice is at.
IRA DIVIDEND-GENERATORS
IYR (53/40/11.7%)
XLU (50/33/<10%)
EWZ (47/63/17.7%)
EWA (46/40/11.2%)
EFA (37/29/<10%)
SPY (37/34/<10%)
HYG (35/20/<10%)
EMB (20/18/<10%)
TLT (20/19/<10%)
EWZ offers both better better premium as a function of stock price than IYR at the moment, as well as slightly higher yield (3.66% for the former; 3.50% for the latter). Since I've already laddered out IYR, I may dip at the EWZ well with the 16 delta short put paying .70 in August at the 22 strike, .84 in September at the 21 ... .
MU BULLERISH Earnings playMU is in a clear ascending channel, has set up meaningful resistance at the $48 level last week. Looks like it has consolidated at the lower end of the channel and is going to make a move up to the top of the channel. This has set up an opportunity to the long side if MU respects the channel it is in. Monday is earnings for MU after market close, I'm not really sure what it is expected and how they have been doing,a few weeks ago I played the $50 breakout successfully, it ran to 54 where I closed the trade.
This chart presents two trade setups because of the positioning of the stock and the underlying catalyst for a move to either direction.
Bullish: MU price target is $54 upon good earnings as a catalyst to move the stock from the lower end of channel to the higher end of the channel, I'll be playing Jul 31 - Aug 07 options as the longest up move from the lower end of the channel took 24 days to complete.
Side note: MU has earnings on Monday after market close, this means that IV will be extremely high on Monday and might not be worth buying options until after earnings. I have already started a position with Jul 17th options, which I will most likely close at the end of day Monday if MU makes a good move off the lower channel because of IV crush the next day and will re enter if indeed the lower of the channel is respected and the stock moves higher on earnings.
Bearish: If MU breaks that lower end of the channel, it could possibly break down and head lower or bad earnings or even good earnings that did not meet expectation. This entry will be based on whether MU holds that $48 level or not, if not could profit really nicely to the downside with options as well, as put options tend to gain more as vol increases (it mostly increases as the stock goes down)
This is not FINANCIAL ADVICE and SHOULD NOT be taken as a trade just based on what I have put out here. Do your own analysis and use mine as supplementation to support your thesis, mine is strongly to the upside more than to the down side and I have a clear plan as to how I will execute with technical and time stops. OPTIONS ARE NOT FOR EVERYONE, check with your broker or financial adviser first.
Semiconductors anyone??Cup and handle on the daily for Mu and weekly for Intel. This is a very bullish and often very successful chart pattern. Go long buddy!
AMD fractalAMD one of the first stocks i traded, showing signs of a repeating H&S pattern, i likely return to the purple fib line before right shoulder is established, nice short. It goes against the momentum of the momemtum of the MA on the Monthly chart but i think a H&S squeeze can be fit in. Strong mirror resistance level at the top of the three peaks can be seen.
Correlation trading of not expensive stockCorrelation trading strategy idea analysis
In my previous ideas, I showed my vision of correlating moves.
Large capitalized stocks like FB, APPL or MSFT have a good correlation with SPY due to big weight in the index.
But less expensive companies like MU also are good for correlation trading.
Look on the SPY and MU charts.
Actual corresponding support&resistance levels look so much alike.
Correlation is good enough to expect future similar moves.
It is an especially good time for correlation trading.
Many big players will close their positions due to a correction move.
So, I suppose, it is time for intraday shorts.
Watch on support levels with particular attention.
Following the correlation trading strategy, it is reasonable to wait for correlated level breaking.
When SPY and MU simultaneously break their resistance levels, It will be possible to buy MU.
When SPY and MU simultaneously break their support levels, It will be possible to short MU.
Do not view this idea as a recommendation for trading or investing. It is published only to introduce my own vision.
Always do your own analysis before making deals. When you use any materials, do not rely on blind trust.
You should remember that isolated deals do not give systematic profit, so trade/invest using a developed strategy.
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MU - NVDA Earnings playMU always goes up when NVDA beats, cheaper play than NVDA because there's no earnings premium.
Will probably buy at the end of the day since it's already jacked up.
$MU Will get there eventually.Spikes up and retraces a lot, but not really affected by constant earnings misses. History shows it should eventually reach the Jul 2018 high, although some profit growth would be nice! Pullback due in short term.
MU Completing Long-Term BottomMU weekly chart shows a bottom completion underway for MU as it recovers from a 50% decline last year. The stock is showing some underlying momentum from large lot hidden activity.
MU strong stock trend in stronger On a yearly performance, MU did better than 77% of other electronic components stocks. Now it is currently trading near its 52 weeks high so it is performing in line with the broader markets.
On a mid-term based daily chart, we could see a strong wedge uptrend pattern with momentum, and a few minor pullbacks occurred due to some broader geopolitical impacts such as the trade war and global 5G development uncertainty. But the stock is kept showing higher lows signaling the investors' passion for it.
MU is about to consolidate at the 56.8 support level which is lying underneath the price as the chart indicated above. Since the ATR volatility risk has not packed in too much yet at the current high, DMI overall trend indicator is still heading up and bull-side trend strength is still controlling the directional momentum, I would go long with it. My target is simply at the prior all-time high resistant area which is indicated by the red band above the stock price roughly at 60, any pullbacks that break below its bollinger bands middle band could be seen as a stop-loss trigger.
Besides, on the order flow side, there were over 2.9 million valued long calls detected from the options chain today with a strike at 60, expire in March.
