$STX getting hit hard — down 5%+ at the open as the memory selloff rolls into day two. Chinese competition fears dragging the whole sector: $MU, $SNDK, $WDC all bleeding. $SOXX down another 1.6% after Monday's drop.
This is contagion, not stock-picking. When the sector ETF is red two days running and everyone's moving together, you're fighting the tape trying to catch individual names. Memory's a commodity trade — margin pressure from China means multiple compression across the board.
If you're long any of these, tighten stops or hedge with puts on $SOXX itself. If you're hunting entries, wait for capitulation volume or a sector-wide flush before stepping in. No edge in trying to call the bottom while the flow is one-way.
This is contagion, not stock-picking. When the sector ETF is red two days running and everyone's moving together, you're fighting the tape trying to catch individual names. Memory's a commodity trade — margin pressure from China means multiple compression across the board.
If you're long any of these, tighten stops or hedge with puts on $SOXX itself. If you're hunting entries, wait for capitulation volume or a sector-wide flush before stepping in. No edge in trying to call the bottom while the flow is one-way.