$Micron Tech(MU.US) During the day, it's quant funds smashing it down; at night, they pull it up. Leverage is blown to pieces, I'm completely at a loss. Just follow the rhythm of the steel big shot.
Bought a batch of Korean stock SK hynix before the market close, price 1.853 million.
Last week, I specifically posted about SK hynix ADR, advising not to participate,
The lower bound of the given range was 120, and if bought at 176, it would... Because so many people were enthusiastic, I didn't want to dampen their spirits, and I can't predict the future.
1 ADR itself has a premium, opening at 160-170, with limited profit potential.
2 The Korean stock peaked at 2.98 million, the starting point of the surge to the top in June-July was 1.855 on 6/8, so if it falls back to 1.855, it would likely drop about 40%, with a maximum potential of being halved.
3 Currently, based on a 40% drop, the 2X SK hynix bought at the peak in June-July would fall 60-80%, basically gone.
4 On 6/18, I posted advising to reduce leverage, and my own 2X position was roughly liquidated at 140-150.
5 If the ADR falls 15% pre-market or at today's open, it would be at 142.8. All those who bought at Friday's open are trapped, and with many trapped, there is resistance for a short-term surge.
6 Before I bottom-fished this batch at 185.3 today, I held a total of 120 shares. I sold 100 shares on 7/3 at a price of 2.4 million (there was a screenshot in the previous post). The remaining 20 shares have a very low cost. Looking at it after the big drop now, based on valuation, it's indeed not expensive, just fear and panic selling due to rumors + inertia decline + Korean stock deleveraging. Therefore, I bought 20 shares of Korean stock as the first batch for bottom-fishing, and there's still capital to proceed slowly.
7 I checked, in the morning, Korean stock had over ten million USD in forced liquidations, with liquidation prices around $1300, all liquidated before the close.
8 Last week, the key levels for memory were still
SNDK 1450-1900, buy if it doesn't break below 1450, second support 1734, exit if it can't hold above 1900.
MU 850-976, buy if it doesn't break below 850, exit if it can't hold above 976.
SK hynix, if 205 breaks, go to 1.85 million. Currently, we need to see tonight's US market situation to judge whether it will continue to plummet tomorrow.
That's roughly my operation. Risk control comes first. I don't recommend 2X for bottom-fishing either, so even if you cut losses later, you won't lose much.
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