Hey, friends and trading family from around the world. I hope everyone is well and had an incredible Fourth of July weekend! The market was pretty robust going into the holiday season, but after the break, “Hello ‘sellsville’!” In spite of this, the market is still nice and bullish overall and if anything, the retracement allowed momentum to pick up steam.
My prediction? The market has a nice, albeit tiny thrust higher in the next few days, buyers finally say “This is it!” and hop in strong, then the real selling pressure comes making for a smaller correction in the market of perhaps 5% -10%. That’s my theory anyway. With this general market perspective, there are a lot of good trades to keep your eyes on: NVDA, TWX and this one, Micron Technology Inc. (MU).
Top Pick
MU has been on a proverbial tear recently, literally tripling in price in one year. It appears to me the gap back in mid June could very well be a measuring gap / continuation gap, and measuring gaps usually happen in the middle of a trend.
Key Levels
The range I am eying would be from those nice gaps in mid April to the June gap, so I’m looking at approximately $9.00. Projecting that upwards makes the $39 price range very possible and attractive. I need liquid cash in my account currently for some things coming up, but I do plan on doing put sales on this particular stock.
For other traders out there, I’ve outlined some pretty solid trading plans both with good risk:return. I would wait for a close above $32.98 for a bullish entry. Play this one the way you see fit, but it looks nice to me. There are two nice hammer candles right at the 20 exponential moving average, which is a good enough sign to me to be more bullish than bearish.
Enjoy the weekend ahead, friends. I plan to meet up with some good friends from TX and do the GloRun in Nashville, TN Saturday night. Should be fun! Until next time!
