If Micron Technology (MU) breaks out here, it will be ball game over for the bears in the non-FANG portion of tech -- the part that can make the Nasdaq sing here.
Ever since Micron failed to make a new high after two consecutive quarters of sharply better-than-expected earnings, bear and bulls recalled the collapse in pricing that often signals the end of a huge move and a staggering decline in the stock.
We have seen Micron estimates cut in half before our eyes and then cut in half again -- so the world's greatest long becomes the world's greatest short.
I can't recall a time when this hasn't happened and the cycle lived on.
It might happen now.
Keep in mind if it does, the lid will come off of the stocks of Action Alerts PLUS holding Broadcom (AVGO) , Skyworks Solutions (SWKS) , Qorvo (QRVO) and AAP holding Nvidia (NVDA) , Texas Instruments (TXN) and Analog Devices (ADI) . Perhaps equally as important, the battle over Qualcomm (QCOM) paying a higher price to get NXP Semiconductor (NXPI) (also a holding of Action Alerts PLUS), will become a rout -- meaning Qualcomm will have no choice, especially given the cohort's pending explosion upward.
I cannot stress the import of this move. We have seen Broadcom and Nvidia -- two key stocks for Action Alerts PLUS club members -- come alive, but they have failed to take out their highs, too, after what was thought to be disappointing guidance and quarterly numbers, respectively. Both of these issues have been well covered by TheStreet's Eric Jhonsa.
They will ramp large -- and I wonder if Western Digital (WDC) can get back on its horse.
Of course, the dream team would be a joint takeover bid from WDC and AVGO for Toshiba's flash unit -- but either way, WDC goes higher if MU breaks out, because an MU breakout would signal good prices not just in DRAMs but in flash.
So put MU at the top of your screen. This battle is for all of the tech "marbles" between here and the Sep. 12 Apple iPhone 8 launch.
