Can Micron Save The Bull Market?

Can Micron Save The Bull Market?
Photo by Annie Spratt / Unsplash

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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!

Short- And Medium-Term Market Analysis