The Wheelie Investor
Options Trader, Agentic Trading, Builder of AgenticTG
SanDisk is drawing aggressive long-term institutional buying that supports further upside. It posted its largest dollar buy volume ever at $1,646.55, a sign of institutions building a long-term position, and weekly high-dollar volume of $140B off the recent low supports a six-month upside continuation pattern. Selling from all-time highs looks inefficient, the monthly trend is bullish, and over $140M went into August 28 $900 calls. x.com x.com x.comÂ
Micron's surging memory revenue points to a supercycle. Its segment and NAND revenue charts show a sharp recent acceleration, while the stock tests its rising 30-week average. x.comÂ
Buyers rushing into Micron's gap-down open show fear is still too limited for a sustainable low. They bought hand over fist, while the equity put/call ratio stood at 0.75; significantly more pain and fear are needed. x.com x.comÂ
Micron's latest quarter is strong enough that the stock should be up big. Cash rose from $30 billion to $73 billion in a single quarter, and guidance beat expectations by about $6 billion. x.com x.comÂ
Memory stocks are worth buying on every major dip because AI hardware infrastructure spending is not slowing down, per Bank of America's upgrade of Micron and memory. BofA said the market is underestimating Micron and called it time to buy. Sandisk ranks first and Micron second, and buying major dips in memory should make investors rich over time. x.comÂ
Micron and SanDisk are headed for an epic selloff eventually, driven by market FOMO rather than the companies' fundamentals. Investors are piling in, and once a few sell, many will follow, much like Strategy in 2024 or AppLovin last year. It could come in three months or tomorrow, and the stocks may recover afterward, but stocks don't go straight up. x.com x.com x.comÂ
Micron's dip is a generational opportunity to buy a great company at a discount. Revenue is up about 25% year on year on AI-driven demand, and the stock trades at about 14-16x forward earnings. At $939 now, it is a $1,200 stock. x.comÂ
Micron's revenue grew faster than its stock over the past year, leaving it cheaper on trailing earnings. Quarterly revenue rose from $11.3B to $54.2B, while the stock rose from about $198 to $878 and trailing P/E fell from roughly 24x to 11.6x. x.comÂ
Micron's indecision after a 40% rally off the low suggests short-term speculators may be exhausted. Despite unprecedented institutional buying and a reclaim of its VPOC and AVWAP, the stock is not acting strong, mirroring the bearish semiconductor ETF setup earlier in the week, and it faces monthly resistance. A $90M bearish risk reversal on the October 16 $980 strike, later added to by $20M, reads as a hedge. x.com x.com x.comÂ
SanDisk and Micron are in monster stock mode and probably nowhere near a top. SanDisk shows no volume acceleration yet, and the split of a leveraged SanDisk ETF next week could nudge SanDisk toward its own stock split, helping it accelerate higher. CNBC talking about crashes while these leaders surge is a super bullish sign that the run continues. x.com x.com x.comÂ