MU Trade on Jan 20, 2022 09:51 from JRockTrades: Tradervue User Stock Trades.

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Double Bottom Mean Reversion OGT Oversold

Big Picture

MU reported strong results in their last earnings, but the market has not been a great one to be long in. Tech especially has been pulling back, being down 10% prior to this day. This puts it in definite correction territory. MU did manage to make a new ATH after it's last earnings, but has been in a downtrend in sympathy with the market since then.

Technical Setup

MU had sold strongly on the open being significantly weaker than QQQ. It came to my attention due to the strong selling back to levels where it had broken out from during it's last earnings. It had double bottomed at around $87.13. I was looking to make a mean reversion trade risking a move below $87. My profit target was VWAP but I wanted to be ready if the move was going to be more significant.

Trade Management

I took half the trade off at $88 to cover risk and because MU had resistance in that area. In the case that it would only retrace to that level, I wanted to have a break even trade should the rest get stopped out.

The trade actually worked really well and I took profits all the way up to $90, which I saw as a likely reversal spot. At that point I sold my final shares and switched short for a small scalp. I ran too tight of a trailing stop on that one and missed a portion of the move lower, but no worries.

Conclusions

Unfortunately these weren't my only MU trades and I did have some deep wounds from trying to buy when this was moving lower on it's opening drive. Still these 2 trades were enough to more than make up for those losses.


Execution detail:

Date/time Symbol Qty Price Position
2022-01-20 09:51:42 MU 100 $87.340 100
2022-01-20 09:57:50 MU -50 $87.970 50
2022-01-20 10:06:26 MU -8 $88.770 42
2022-01-20 10:06:26 MU -2 $88.770 40
2022-01-20 10:40:10 MU -10 $89.440 30
2022-01-20 10:57:18 MU -10 $89.750 20
2022-01-20 11:01:18 MU -10 $89.910 10
2022-01-20 11:06:05 MU -10 $89.765 0
2022-01-20 11:06:15 MU -100 $89.820 -100
2022-01-20 11:10:04 MU 35 $89.520 -65
2022-01-20 11:14:03 MU 10 $89.399 -55
2022-01-20 11:18:33 MU 55 $89.520 0


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