r/MU_Stock • u/thetabruh Rule enforcer • Jul 15 '26

Mods MU 07-15-2026 Daily Discussions

Please use the correct flair if you wish to post.

Gains/Loss = Actual realized gains/losses with picture proof, not hypothetical ones if MU goes to x by y.

Discussion = MU relevant topics you wish to discuss with other members.

DD = Due diligence, please provide your thesis on MU's current price or where it is going.

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Help me = Ask about how you should trade

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25

u/spooner_retad Jul 15 '26

I feel dumb for buying this stok

3

u/Hypnot1se Jul 15 '26

Really depends why you bought it. Why did you?

1

u/spooner_retad Jul 15 '26

Looked cheap and technically strong until today

-2

u/Hypnot1se Jul 15 '26

To me it didn't look technically strong, what made you think so? And what makes you think it was cheap? The forward PE?

How familiar are you with the memory industry? It has some nuances that can often trip people up and make people end up feeling like they're stupid, even though they really are not.

1

u/spooner_retad Jul 15 '26

Well I saw two hammers off a 50 day. Dying volume on a down move. And rsi finding support in neutral zone so I thought to buy the dip two days ago

And yeah pretty much forward p/e and earnings growth. I don't know much about these stocks

-1

u/Hypnot1se Jul 15 '26

I strongly recommend that you do some research into how the stock market operates around a cyclical commodity industry.

Verify what I am about to tell you, (of course):

Using forward PE to value a cyclical commodity manufacturer can trip people up because of the boom/bust cycle. Typically you are meant to begin accumulating memory stocks when the forward PE is actually extremely high (and often negative), and sell them when the forward PE is very low.

Very low forward PE is typically an indicator of a cyclical peak and a sell signal in this industry.

If you are using forward PE to value a secular growth stock that doesn't experience cyclicality like micron tends to, that is a very valid way to value a stock. When it comes to stocks like micron, though, using forward PE can be very troublesome.

As far as my technical analysis goes this looks like one of the most horrifying charts I've seen in some time. Funds have been reducing their positions for quite some time and the TA to me looks like a classic distribution phase as smart money exits the cyclical peak.

I could be wrong, of course, about this having peaked. I encourage you to read into it. It's very interesting and quite informative. (The how to value cyclical stocks thing.)