It's amazing how Micron is holding up with a range of 0% to +0.2% despite the red flags.
As soon as Nvidia mentioned its AI infrastructure investment package, it dropped by -2 -> -3%, and Apple seems to be down due to semiconductor supply issues.
Intel is in the red due to a capital increase. AMD feels like it's following Intel...
Micron is still around $880, and SOX is taking a beating after breaking above its 20-day line. There are rumors that Nvidia will recently reduce the memory for its Rubin chipset, which means that optical communication will become more important for building systems with large inference capacity. This has led to expectations of a significant rise, but it seems like profit-taking ahead of earnings announcements is also contributing to the decline.
Optical communication has a lower valuation compared to semiconductors, so it's experiencing a large adjustment.
That's why SOX is playing around below its 20-day line like a ghost.
It seems like macro traders are openly drawing lines and shorting specific semiconductor stocks.
They're essentially drawing lines on the chart and launching a margin attack, and it's remarkable that Micron is holding up...
Micron is likely to turn negative when you wake up. Options expire today, and the call side has never won recently...
Moreover, the 10-year Treasury yield rose to 4.7%, and oil prices broke through $81.
The 10-year Treasury yield seems to be rising due to Intel's capital increase and Nvidia's $500 billion financing package,
and oil prices seem to be rising due to news of the Houthi rebels attacking Saudi oil facilities.
Looking at it this way, Trump has become the worst president for the United States during a crucial time...
