Here’s your trade in Micron Tech (MU) tomorrow. (March 23, 2017)
MU SP-500 MU
Today I want to look at Micron ( NASDAQ:MU ). First just some general thoughts about the market. We are at a key support level here. We are going to get a move, one way or another, tomorrow after the healthcare vote. Nobody really knows which way it is going to go, which is why the S&P ( INDEXSP:.INX ) essentially closed at about the same level that it opened, within a tenth of a point, very, very close. The point is, the market is at a standstill and you don’t know which way you are going, so don’t be making big bets one way or the other
Now, Micron ( NASDAQ:MU ), lets look at this for a minute. This is a stock that has been a monster. Since this last May low the stock is up 175 percent. With this after hours thing it is up 200 percent because they reported strong earnings. Here is what I want you to think about tomorrow, and I am going to make you some money if you are holding this stock, well, if you are holding the stock I am not going to make you money, the stock is already making you money. You want to be selling into this. And the reason is, because the stock has already made this big move. Look what it did 3 months ago, another gap up, this time from 21.00, now it is from 26.00. A gap up, and then it ultimately traded lower.
Now if you are still holding it from down here, good for you, you are making a lot of money. BUT, if you had taken your profits after the stock jumped up over 10 percent, now you could have waited around a little bit. Still like the company, fine, I will buy some when it falls back here when it starts squeezing a bit. But then ultimately you are still long the stock. Now that the stock has gapped up again, over 10 percent, look to sell into this. And if you think that is not the right thing to do go on the 1-minute chart tomorrow and see what is happening, see how much volume is there at that high price. Of all those just remember, every share bought is a share sold. And so you are seeing that volume spike way, way up; there are a lot of people selling that stock. Don’t you think you might want to be one of them? I am not sure if I would short it, but I will tell you one thing, if the stock got up to $30.00 and then started rotating back, I would be selling some out of the money calls in a heartbeat.
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