Making A Positive Out Of A Negative:
The conundrum one faces in a firm bull market is why to purchase a lagging name. They often do so for a reason, and the opportunity cost to wait for a turnaround could not only take a toll on your psychical capital but your mental capital as well. But stocks will often show good signs of a bottoming process and give clues as to when a downtrend may be ripe to be broken. Below is the chart of MU, a name which quite frankly has been left out of the semiconductor bliss. The stock is still in bear market mode 20% off most recent 52 week highs but scored just its second, 3-week winning streak since February (the last time that occurred was the weeks ending between 7/23-8/6, which were followed by a 13.5% slide the week ending 8/13 so let’s look for more follow-through). I believe the risk/reward situation with Micron is solid for a long opportunity.