MU is going to have a historic day, but not one that is positive. This is a result of computerized selling by mutuals triggering more computerized selling, and out of the hands of human intervention. If the volume today passes 127.6 million, then I don't remember a higher amount than that during the last 10 years and maybe way before that. On a 8%+ down day that is defined as panic selling. This can either signal a top or a bottom. My trend signals don't indicate a top, but a buying opportunity. It may have corrected to the downside in one day, almost unheard of.
Congrat's to MU on just surpassing a historic volume day. Unfortunately it is not one for MU to be proud of with the % down. This might just reach 150 million. it will be headline news on CNBC and all financial reporting like IBD, etc. This will garner a lot of attention come next week, maybe good, maybe bad.
Corrected to the downside in one day? Don't count on it. The damage (bid now at $16.87) is being done, both real and psychic. It'll take some time to mend. But I'm sanguine about it. In January it was trading at a bit less than $8. From then to now is a huge run. It's finally getting its p/b. And it's bound to take more than a day to find its bearings...my WAG is it'll do so here in the ~$16.75 to ~$17 "sandbox"....but we'll have to see.
Under normal circumstances i would agree with you. However, this is a buying opportunity and major institutional investors will add to their positions once this downdraft is done. Unfortunately from my screens it shows that selling triggered more selling, and the unprecedented volume indicates computerized selling versus human intervention selling. Trading managers will re-evaluate after today whether they should invest more or sell. My bet is that they will opt to add. Keep in mind that MU will report a significantly stronger B/S per this quarter, and TNW will have dramatically improved. Upon next quarter reporting, Retained earnings should cross back into positive territory. Add all that to the fact that the uptrend for DRAM ASP pricing will be higher than estimated for contract due to spot pricing having climbed huge since 9/1. This fact will be included in MU's next quarter, not this one just reported. Let's hope all I have said is correct and that "strong buy" re-iteration by many brokers will occur starting after today due to the swoon. In any event it sure has been an unprecedented day, and one which I did not anticipate to the degree it did.
They are selling hard but buying just as well. Those that missed the first run up getting in for the next run up. This time they have twice the earnings capacity plus higher prices and possibly new customers to sell to. That's why big money is buying up while others sell. They have the opportunity for a 100% gain in 6 months.
Over the weekend, there will be sober thoughts about MU as an oversold to fire sold panic in the streets and MU goes higher on Monday. Never mind the shorts who need to close out their positions. I do see a possible whipsaw low of 15.94 possible, but the reality is the low is already in. MU goes to 17.50 during trading next week.