Sitting with the leader

MU was a leading stock basing near highs that I was already watching. It reported really strong earnings in March, but failed to break out and sold off as the market corrected. Then, as the market started putting in lows and a follow-through day looked possible, MU printed a huge shakeout candle and came back into the base. A leading stock, near highs, back in the base after that kind of shakeout became top focus.

Entry

$413.83

Stop

~$407

The market had been following through for over a week and momentum was higher. MU had a big week after the shakeout, then opened up and sat quietly near the top of last week's range, right under the base pivot. My recent trades were getting traction immediately, so I started it before the breakout with the stop just under the prior week's low. It either had to get traction and break out right away, or stop me out quickly.

At 10:03 AM, MU was +0.55%. TER, NFLX, AMAT, CRWV, TSLA, and GOOGL were red. MU going green first showed where demand was showing up while the market was still under pressure. Institutions wanted that dip first, and MU was one of the stronger stocks revealing itself on my names. Confirmation from my own list. Keep holding while it kept acting right.

I had MU on the focus list in the Apr 19 report, with the plan to add if it pulled back and retested the base pivot. Resistance flipped to support and it followed the plan perfectly. Then I saw a negative memory headline and hesitated. Screwed up add. The chart gave the level and I let the headline override price. Rookie mistake.

By May 18 I had trims at $666, $769, and about $685. MU tapped the 4-week and acted fine. I trimmed around $963 on May 29 and a small piece at $1010 on Jun 5. Then it reversed hard and closed near $864.