Micron earnings momentum helped the company exceed expectations and easily beating analysts metrics by (+0.11) or 4%. During its recent conference call, Micron executives noted that the company has benefited from strong demand and a tight supply of memory chips across a range of devices, including smartphones, PCs and data centers.
If the stock can manage to push through the 20sma at 53.74, RSI and MACD should respond with a cross through 50 and its move above its signal line respectively. Bulls appear to be wresting control as the stock moves higher. MACD histogram bottomed a week ago.
Watchlist for the Week
Additional candidates, that we will consider this week include stocks from the retail, payment processor and energy industry groups. The latter may be a bit weak this morning with crude off 1% in the pre-market session. COnsider taking partial profits on swings we took in CNQ, COP, CVX and HAL over the past two weeks.
Futures are higher again this morning. Despite the early strength we are cautiously optimistic on a follow through, contemplating the potential for a fade similar to recent gaps of this magnitude. Volatility continues to lessen in the interim.
Watch for Strength in Semiconductors (SMH)
The weekend video discussed “mixed signals. In addition, please recall that all sectors and indices have turned from CYCLE lows. With this in mind, we are cautiously bullish to start the week.
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