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Trade of the Day: Micron Technology (MU)

MU is on a tear to the upside


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Micron Technology
(MU) is the nation’s largest maker of computer memory chips. This is the most commoditized part of the technology supply chain — and the stocks trade more like pork-belly futures than technology makers, based on supply and demand, shortage expectations, and the like.

MU also happens to be a stock that is heavily shorted, and thus during short squeezes it can vault higher. It’s been one of the best-performing stocks this year, coming in for pit stops at its 50-day average only twice before, in late December and again in early May. Well, now, as you can see, it is back to that level and bounced Friday and Monday. I think we have to take a flyer on this one.

Recommendation: Buy MU for a $14 target.

InvestorPlace advisor Jon Markman operates the investment firm Markman Capital Insight. He also writes a daily swing trading newsletter, Trader’s Advantage, which aims to capture profits of 15% to 40% and often as much as 100% to 200% in less than 90 days. 

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