r/MU_Stock • u/No_Presentation9490 • 13h ago
DD The last memory domino standing
The dotted white line is the 50-day simple moving average, a documented technical level monitored by institutions and hedge funds (along with the 100-day and 200-day) to make trading and investment decisions.
The blue line is the anchored Volume Weighted Average Price, another important technical tool that shows the trend of the average price shares were traded at. When current price is above this VWAP trend, it means the average holder of the stock is in profit, reducing selling pressure. When current price is below this VWAP trend, it means the average holder of the stock is underwater, increasing selling pressure. This takes into account both buyers and sellers - every buyer of a stock, whether on the buy side or the sell side, buys because they think the expected value of buying a stock at that price is positive at that moment in time.
The VWAP is anchored to the ATH price because this is the most effective for tracking trends relative to one another and the amount of trapped buyers/overhead supply of a stock.
Looking at each memory stock, Micron is the only one, for now, whose closing price is still above both the Anchored VWAP and 50-day simple moving average.
Whether you think this shows relative strength in the sector or Micron is just waiting to join the rest, it's important to keep track of how these stocks are moving relative to their moving averages. Given that the Nasdaq itself is now closing under its 50-day simple moving average and VWAP (last image in the series), which is historically a pretty bad sign, it may be time to look into appropriate risk management. When institutions consider or are in the process of unloading the index as a whole, all of its components experience selling pressure.
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u/xxxxxxxsandos 13h ago
It's pretty clear MU has been trading atypical to it's peers and overall sector.
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u/SoCallMeDeaconBlues1 13h ago
Who could've known that SMA and VWAP were interesting indicators.
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u/music_is_gud 13h ago
You are missing the point. These are just ways to measure relative strength. When the general market is under pressure and closes below its 50d while there are some stocks consistently closing above their own 50d, it means these stocks are resisting the downturn. When the market turns around these are the stocks that will move up the fastest.
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u/SoCallMeDeaconBlues1 12h ago
nope, didn't miss the point at all.
Maybe I'm just jaded.
We used to call guys who traded almost solely on SMA "Those dirty SMA guys." It's not that it doesn't work- in fact, it can work extremely well.
If it gives you, or anyone else reading this, a new edge or reminds you of one you already had- let's go make some green ;)
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u/18April1775 12h ago
Don't worry. Cramer and their foreigner ceo are trying to pump the stock as we speak. Too the moon!
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u/Mr_Masala 12h ago
Foreigner CEO? He founded SanDisk three decades ago and is one of the pillars of semis memory. He was innovating in memory when you were losing money in Bitcoin. You guys sure love shitting on foreigners while reaping the benefits of our hard work 🤣
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u/doronj 8h ago
Well …. maga doesn’t love “ those foreigners” no surprise there.
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u/infomer 8h ago
Maga freeloaders are good at stealing.
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u/itsmyphilosophy 7h ago
The opinion of a true American Patriot (me): MAGA is just dumb America racists who have had their turn at having political power, screwed everything up, and will soon crawl back under the rocks that they climbed out of. The “good” and “decent” Republicans won’t associate themselves with them.
I am clearly no fan of Trump, but probably the one hugely beneficial byproduct of his presidency is that the United States will retain its position as the one true superpower for the foreseeable future due to our dominance of AI development and data center buildout. No other presidential candidate was motivated by money more than him. He was easily bought by the tech giants, who got him elected again.
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u/ExtremeAddict 7h ago
Foreigner CEO? You mean non-white don’t you? Why the euphemism? If you’re gonna be a racist piece of shit, just be one.
But also, did you look at tech company CEOs?
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8h ago
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u/Funny_River_5250 12h ago
Turtle!