MU - mid term super strong

Whilst the main market settled fractionally mixed, there was notable significant strength in Micron Technology (MU), settling +3.4% at $30.69. A break above the key $33.00 threshold will offer a fast run to the $36s. Any price action >37 will offer grander upside to 45/50 in 2018.


MU, daily

MU, monthly

Summary

Suffice to add, I really like Micron. The most recent earnings were superb, and the current valuation, offers a forward PE around 5. On any basis, that is ludicrously low, and frankly, the stock 'should' be priced at least double.

A mid term outlook to $45/50 doesn't seem overly bold, but it'll clearly require the main market to 'stay on the tracks' into spring 2018. On balance.. that seems probable.

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There was notable option call buying today...

Jon Najarian, regular guest on the CNBC lunch hour show.

Traders were buying the Sept'33s and 36s. Those are pretty bullish upside trades, with barely a full month left on the detonator clock. Regardless of that short term trade though, the mid term outlook for MU looks very bullish indeed.