Can Micron Save The Bull Market?
DISCLAIMER: This note is intended for US recipients only and, in particular, is not directed at, nor intended to be relied upon by any UK recipients. Any information or analysis in this note is not an offer to sell or the solicitation of an offer to buy any securities. Nothing in this note is intended to be investment advice and nor should it be relied upon to make investment decisions. Cestrian Capital Research, Inc., its employees, agents or affiliates, including the author of this note, or related persons, may have a position in any stocks, security, or financial instrument referenced in this note. Any opinions, analyses, or probabilities expressed in this note are those of the author as of the note's date of publication and are subject to change without notice. Companies referenced in this note or their employees or affiliates may be customers of Cestrian Capital Research, Inc. Cestrian Capital Research, Inc. values both its independence and transparency and does not believe that this presents a material potential conflict of interest or impacts the content of its research or publications.
Market On Open, Wednesday 26 June
by Alex King
Firstly, a warm welcome to our Registered Investment Advisor (RIA) members. We’re launching an RIA-specific service, focused on helping you grow assets under management. Early-bird pricing is just $499/yr or $99/mo. This price will rise significantly over time, so if you’d like to lock in today’s low rates, sign up right away. Choose “Registered Investment Advisor - Insight Pro” from the checkout portal.
(Note, if you’re an RIA already paying for one of the services here? If you’re a Market Insight subscriber, just upgrade to the RIA service. If you’re an Inner Circle subscriber, do nothing for now).
What To Worry About Today
On deck today is Micron ($MU) earnings. As you know, Micron is the leading US-based memory chip business. When people are buying more computing devices, they are buying more memory. The more intensive the computing, the more intensive the memory requirements. $MU is a second-order beneficiary of the boom in spending on $NVDA GPUs; we saw in our note yesterday just how much this has benefitted the stock already. MU is sat at $141, below a key technical resistance level of around $157. The company prints earnings today after the close; a bullish reaction may push the stock up and over $157 and take semiconductor-sector ETFs and likely the Nasdaq and the S&P upwards with it. A bearish reaction may deliver another blow to semiconductors, which have led the market all year and which just started to sell off last week before a reprieve yesterday. Paying members here - whether RIA Market Insight Pro, Market Insight or Inner Circle - will see our earnings report on Micron after the print.
So Let’s Get To Work
As always in our Market On Open notes, we deal with long- and short-term charts covering the main US equity indices - that’s the S&P500, Nasdaq-100, Dow Jones-30, and the Russell 2000 - plus bonds, volatility, oil, and key sector ETFs. You can use these daily notes to help you navigate long-term investments, and/or to help you action short-term trading. Any paid-tier subscription here gets you these notes every trading day.
Read on!