Micron dropped 11% on Wednesday. Wiped out nearly $200 billion in market cap. Gone. Vanished. The kind of money that could buy every house in Idaho twice but instead evaporated because someone somewhere decided the charts looked bad.
This happened one day into Q3. One trading day. Micron rallied 240% in Q2, which means every retail trader who bought at the top in June is now refreshing their Robinhood app wondering if technical support means someone they can call.
The stock notched a record rally for an entire quarter. Then it opened the next quarter and immediately ate sh*t. That's not a bear market. That's not a correction. That's a chart pattern called "your cousin who got really into day trading is about to go quiet at Thanksgiving."
Chip stocks as a group started Q3 with a dud. Not a stumble. Not a pullback. A dud. The financial press used the word dud, which is the kind of term you use when you want to describe a catastrophe but you're worried about getting sued.
Memory makers jumped 240% in three months and nobody thought to ask why. Nobody wondered if maybe, just maybe, that was too much too fast. They just bought more calls and posted rocket emojis.
Now those same people are trying to figure out if this is a buying opportunity. They're checking the fundamentals. Reading analyst notes. Drawing trendlines on their phones. They're doing everything except admitting they bought a stock up 240% because someone on Twitter told them to.
The gap between Q2's record rally and Q3's opening dud lasted exactly zero days, which means someone bought Micron at close on June 30th and woke up on July 1st down 11%. That person is you.
Photo by Oren Elbaz on Unsplash
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