$SNDK $SKHYNIX Can you still chase after a continuous downward slide?
Today, on Monday, SanDisk and Micron directly had their AI cooling expectations slammed, and it got hit with a wave of selling. Although yesterday the “菜包” (my setup) was on break, it still took a small position early to set up a short—betting that there would be a sell-off in the early session today. As expected, the market basically followed through, and the shorts successfully profited from this pullback!
Why is “菜包” so firmly bearish? This short isn’t really about being bearish on AI. It’s about being bearish on the overly discounted expectations. SanDisk has already surged too much beforehand, and the NAND price-hike expectations were already fully priced in.
As for Micron, even though the HBM fundamentals remain strong, it has also accumulated a large amount of profit-taking positions at high levels. Once the AI-cooling news came out today, capital first started hitting valuation and then hit sentiment.
Personal trading suggestions: Short SanDisk on the rebound to 1560, target 1515. Micron around 1240 can be shorted with a small position, target around 1200. The U.S. market is about to open—watch the tape and it will tell you the answer!
Today, on Monday, SanDisk and Micron directly had their AI cooling expectations slammed, and it got hit with a wave of selling. Although yesterday the “菜包” (my setup) was on break, it still took a small position early to set up a short—betting that there would be a sell-off in the early session today. As expected, the market basically followed through, and the shorts successfully profited from this pullback!
Why is “菜包” so firmly bearish? This short isn’t really about being bearish on AI. It’s about being bearish on the overly discounted expectations. SanDisk has already surged too much beforehand, and the NAND price-hike expectations were already fully priced in.
As for Micron, even though the HBM fundamentals remain strong, it has also accumulated a large amount of profit-taking positions at high levels. Once the AI-cooling news came out today, capital first started hitting valuation and then hit sentiment.
Personal trading suggestions: Short SanDisk on the rebound to 1560, target 1515. Micron around 1240 can be shorted with a small position, target around 1200. The U.S. market is about to open—watch the tape and it will tell you the answer!
