AI Investors - Micron & Sandisk Have Officially Broken Out (Do This Now)

All right, what's up everybody and welcome back to another Friday here in the stock market. Well, in today's video I want to talk to you all about two of our favorite stocks in the AI trade, more specifically in the memory sector of the AI trade, being Micron and being Sandisk. Because over the last 24 to 48 hours of both of them have seen a beautiful breakouts of macro structure, which in my opinion could be setting them up for some juicy gains and potentially all-time highs at some point. And so because many of you do invest in things like Micron, Sandisk, and other semiconductors in general, in today's video I wanted to walk you through everything. We're going to go over what a breakout even means for these stocks, why it could be setting them up for future gains, some mistakes that I do not want you to make right now now that they are breaking out, and exactly what I'm doing in my own portfolio and in my own trades as a result of these breakouts that are occurring. And my goal is that you leave this video feeling pretty caught up and up-to-date and you understand what's going on here. So nothing that happens throughout the rest of today and going into next week catches you off guard. So, we do have a good bit to get into today and I don't want to keep you too long on a Friday, folks. So, let's go ahead and let's jump straight on in. So, first and foremost, whenever I say that both Micron and Sandisk are breaking out of macro structure, what am I talking about? Well, it's very very simple. Over the last few months, since the end of June, so right, so let's call it 6 to 8 weeks, we have been seeing both Micron and Sandisk doing this. Consistently putting in lower highs and lower lows, lower highs and lower lows. And while they've been putting in these lower highs and lower lows, they have been reacting to a very clear trend line. There has been a trend line that looks roughly like this and every single time that they have come up to this trend line, they have been rejected off of it and the price has fallen back towards the downside. And so while they were in this downtrend, I told you guys it's a very simple thing you need to be on the lookout for. Micron and Sandisk cannot recover, they cannot see any relief, they cannot go back up until they at least break back above this trend line. Because while they're below it, it's just too dangerous and they're going to keep getting rejected. So, I told you all don't even get optimistic about Micron. Don't even get optimistic about SanDisk until they at least break that trend line. And once they do that, I'll tell you exactly what to be on the lookout for next. So, for those of you who want to try to, you know, see SanDisk going back up towards an all-time higher see Micron going back up towards an all-time high. I told you step number one was getting above this trend line. Well, if we do go look at how this is played out, they have both now officially broken that trend line. What we can see is that SanDisk has come up got rejected off of it one more time. It came back down to find macro support. The buyers stepped in right here and SanDisk has now made an absolutely fantastic rally back towards the top side, currently sitting at $1,600. If we go look at Micron, you can see a very similar thing happening. Micron was in a very clear downtrend. We were actually playing this trend pretty well, you know, catching some long trades off the green zone, taking profits in the red zone. But Micron did a fantastic job at consolidating and coiling up in that red zone over the last few days before breaking out. Now, I'll be honest with you, we did call this breakout. Um, earlier in the week I said the Micron signal is flashing. We were looking at the Bollinger Band Width signal and I told you all, "Hey, listen. Micron has higher chances now of breaking to the upside than it does the downside." And I told you, "Since Micron was coiling up in this resistance zone, it wasn't just getting rejected like it had previously, there's a good chance that Micron breaks out and starts chasing down $1,000." And fast forward just 48 hours later, that is exactly what is happening. And as you can see, Micron is currently sitting at $976 and doing an absolutely fantastic job. So, all in all, whenever I say that Micron and SanDisk are breaking out, I am saying that yeah, they are absolutely changing the structure in which they were in and opening up the door towards the upside, right? It takes a move of this nature for a SanDisk to be able to go back up towards, you know, $1,900, $2,000. It takes a move like this for Micron to be able to recover back up to 1,100 bucks. And had they just kept getting rejected down, I mean, you were going to look at Micron falling back into the 600s. So, this was one of the best moves that Micron could have possibly made. This was one of the best moves that SanDisk could have possibly made. And again, if you're a holder of these two, you should be feeling very, very bullish right now because there is real opportunity in the future here, okay? Now, I want to make one thing very clear. Although this is a great moment for Micron, a great moment for SanDisk, and reasonably this could be something that brings a lot of liquidity to other semiconductors as well, I don't want you to get too far ahead of yourself because let me give you a real unfortunate reality. There are many times, many times in which you will see something like this happen. You have this very clear downtrend, right? You have that downward trend line, look something like that. You break above it, you come back up, you try to start making upward potential or upwards progress, you try to start breaking out, but ultimately you fail, the sellers take back over, and then you see it just rolling back to the downside. So, although you were firm out of this structure, you can still continue downward because if you look at something like a SanDisk, SanDisk is still in many ways in a form of a downtrend. It's definitely broken this downtrend that it was in, but realistically, I mean, it is still setting higher lows than where we were back here. It easily could just go boom, boom, right back to the downside. Same thing with Micron. Micron has done a very good job at breaking out of the structure, but in all reality, it easily can just continue to the downside. I actually wouldn't say that it's the most likely scenario, but it is a scenario that is worth paying attention to, okay? So, I'm not going to go as far as to say, "Oh, because they've broken out, we're back by any means." But this is the perfect step in the right direction to be back. And the way that I look at it is that it's a three-step process for something like Micron to be back, to start going up towards all-time highs. For SanDisk to do the same, going up towards all-time highs, you're going to need to see three steps completed. Once these three steps are completed, that's when we can start going, "Oh my god, they're back. White boys, we're so back." Right? So, let me walk you through them. So, whenever you see a downtrend like this, right? Let's just continue to draw that out a little bit here. Boom. You got this downward Oh, you know what? Let me make this a little bit clearer. This will make it a bit easier, okay? So, oh my goodness, didn't mean to do that. Here we go. One more time. Boom, boom, boom, boom, boom, boom. Okay. So, when you have a downtrend like this and you have your downward sloping trend line. So, just imagine hypothetically that this, you know, got rejected right here. Boom. So, whenever you see a moment like this and you get rejected and then you finally get the breakout of that trend. That's step number one. This is step number one right here. And look, we can do it like this. This will be a little bit easier. Boom. So, whenever you see it get rejected, get rejected, get rejected and then eventually break above it, this is step number one. It is the best possible thing that can happen in that moment because it gets you out from under the structure and it's a sign, a clear sign that buyers are starting to take control of the price. Because when you're getting rejected constantly right here, right here, right here, that means that the sellers are in control of the price. And every time that it hits their sell zone, the level that they want to sell at, they are capable of doing it and the buyers are not capable of pushing the price up. You're in seller's territory. Once you finally clear through that line, trust me, the sellers didn't want you to get through that line. Once you get through that line, now you're back in buyer's territory. The buyers have taken control. So again, that's step number one. Step number two then becomes going back up and breaking above your most recent regional high. So, your regional high is going to be one of these points on that previous point of resistance where you hit it, got rejected, came back down. All right? So, in this case, this would be that regional high right here. And what you're going to want to see is the price being able to come up and break above that previous high. That's step number two. And the reason why this is important is because at the end of the day, although sure, you may have gotten a breakout in step number one right here, you are still in a downtrend. And there's a world in which if you just roll over right here, you are just still in a downtrend. You're setting in lower highs, you're setting in um lower lows, right? So, number two, breaking above that previous high puts you in a position in which you're actually in an uptrend now. So, you went from breaking out of the structure, right here, to now breaking out of the downtrend. That's step number two. Step number three then involves the golden zone. What you're going to need to do is go back up to the the highest high from in that trend and to the lowest low within that trend, which would be right here. And you're going to draw in your golden zone. And your golden zone is step number three. Once you're capable of breaking above the golden zone in step number three, that then opens you up for all-time highs. And history will show this is when you have like an 80 to 9 80 to 90% chance of chasing down an all-time high, getting back above that all-time high, and then pushing up towards some of these higher levels and going into price discovery. So, it's a three-step process. Break above the high, break or sorry, break through the trend line, break above the high, break through the golden zone. Those are the three steps that make you go, "Oh my god, we're back." This is euphoria. This is when all hell breaks loose. All right. So, now that you have an understanding of these three steps being break the trend line, break the high, break the golden zone, let's go look at where SanDisk and Micron are in relation to those steps. So, when we look at something like SanDisk, it's done a great job. It's already come up and broken through the trend line, so that's step number one. And now it's also come up and it's broken through its most recent high. That's step number two, okay? So, the next step here for SanDisk, realistically, is coming back up and breaking the golden zone, which realistically is going to be a step that's going to happen very soon because the golden zone starts at 1682. We're at 1620 right now, okay? So, SanDisk isn't very far away from it. But what that means is that there is a major major zone of resistance. This golden zone is a major zone of resistance sitting directly above SanDisk right now that is going to for sure try to slow this price down. This big breakout that we've been on will very likely slow down in some capacity as it gets up towards this golden zone. And whether that looks like, you know, a rejection or a slowdown, I don't really know. What I'm telling you is very, very, like 90% chance it's going to slow down between the $1,600 and $1,900 level. There's going to be a lot a lot a lot of resistance here. The sellers are not going to want you to be able to get above this level because they know breaking this means all-time highs are coming. Breaking this means Sandisk goes chase down $3,000. And I know some of you think Tyler Sandisk is never going to $3,000 again. Okay, time will tell, right? Fundamentally, I think that there's a world in which they do, especially with the revenue that they're generating, and breaking the golden zone opens them up for that, right? And so, if you're a Sandisk investor, you're going to want to be on the lookout for this golden zone. This is the moment of truth, but I'll come back to that in a second. Now, let's look at this with Micron. What has Micron done? Okay, well, Micron has done a very good job at breaking above the trend, which is very good, but I would personally say that Micron hasn't broken the high yet. Now, some people are going to say, "Hold on, Tyler. Well, look what happened right here. This was the high right here for Micron. Why wouldn't that be considered the high?" And the reason I say that is because although it was the high like although this is a high, I would consider this to be your regional high because all of this price action right here was within the parameters of that high and of that low, meaning that realistically, even in here, you're still setting lower highs, and you're still you are in some ways trying to set higher lows, but you've not really established one. So, I would say that that is your more regional high, and I would place that right here at $1,011. And [snorts] the fact that it aligns so well with the psychological level of roughly a thousand bucks, I think it's going to be important that we pay attention to $1,000 and call that number two, rather than calling this right here number two, okay? Some people will look at that differently. There is just a lot of nuance to it, but this is the way that I see it. I'm playing it a little bit extra cautious by establishing this as number two, okay? So, in my head, Micron has established number one, it's gotten a breakout of the trend. Now, it's coming back up to number two, and it's trying to break through that previous high. Once it's capable of doing that, the game the game plan is very simple. You're looking for it to break number three, which is the top side of the golden zone, but I want you to notice something. Look at how the bottom side of the golden zone perfectly aligns with that previous high. That's called confluence, and it makes me even more confident that that's your real number two, not this high up here not this high down here, okay? And it's funny, people think this is accidental. It's none of it's accidental, guys, okay? And so, with that in mind, again, we're looking for number two. We're looking for it to break 1,007. We're looking for it to then break 1110. Once Micron completes all three of these steps, yeah, I think you can be looking at a Micron that's chasing down an all-time high and possibly 1,468 bucks. And again, a lot of people are going to say, "Tyler, that's never happening." Time will tell. I'm not saying it's 100% going to happen, and I'm going to talk about that in a second, but based on historical data and based on technical data, that is the setup for Micron. That is the setup for SanDisk. And if you go look at what has happened historically with these assets, it is very, very similar to what we've seen in the past, right? Let's go look at some previous moments in which we've seen something similar. Maybe not the exact same setup, but something remotely similar. Like, we can use this as an example. Look at how it's played out, right? You've gone up. You've had your trend line right here. You've had your golden zone right here. And then, of course, you've had your regional high right here. Now, this is all come in a bit of a different order, but it's very much the same. You've gone up. You've broken above your golden zone. Officially, it finished right here. You broke above your trend right here. You broke above your regional high right here. It had basically all three things happen within this candle. And then, that opened up Micron for a beautiful move towards the top side. Or, if we go look at SanDisk, right? We've had some other moments that were somewhat similar, I believe. Um well, I guess SanDisk had that upwards trending one which is a little bit different. So, I'm not going to go ahead and count that one. But, I mean, if we look at this as an example, what you can see is that SanDisk had the descending structure right here. It had its golden zone right here. And you can see how it played out, right? SanDisk came up, broke through the trend, broke through the regional high, broke through the golden zone, ran up towards all-time highs. That's what I'm saying. Once you complete these three steps, it does open you up for upward momentum. And so, that's why I'm looking for these ones to be able to do the same, with SanDisk now coming up and completing step number three, and Micron coming up and completing step step number two by breaking above that $1,011 high. So, now that we know what the next steps are, we're looking for Micron to break a thousand and eleven. We're looking for SanDisk to break into the sixteen sixteen eight seventeen hundreds up here to start working into this golden zone. The question that a lot of people are going to have is well what do you do now, right? What do you do in a moment in which they are not completing? Like they still have steps to complete in which we still have number two coming here for Micron and we still have number three coming there for SanDisk. Well, the best thing to do in my opinion is absolutely nothing. I think now is one of the worst times that you could be buying in the short term. And I know that's not going to be something that a lot of people are going to want to hear. They're going to be They're going to want me to be bullish. They're going to want me to go no Tyler you tell people to buy. No, I'm not going to do that, right? I'm not going to I'm not going to lie to you guys. It just doesn't make a ton of sense because what you have to understand is that both Micron and SanDisk are now running into major zones of resistance. These are going to be the levels. These are the battles. These are the tests. This is the moment in which the sellers are going to step in with everything they got and try to stop Micron from continuing upwards. Try to stop SanDisk from continuing upwards. You're going to see a real battle happen here and realistically going in and buying right now just somewhat in many ways setting yourself up for failure, right? Because the odds are not in their favor. The odds are not in Micron's favors to favor in the short term to get above a thousand and eleven. The odds are not in SanDisk's favor to get into this golden zone. No, it's going to be a battle. It's going to be a fight. It's going to be a war and that's not a place where I personally like to bite to buy. What I don't like to do is if I have resistance up here and support down here, we bounce off of support and right here we're about to go to resistance. This is not when I'm buying. No, I'm buying down here. This is the reason why we were opening up long trades on Micron when it was in the green zone down here, right? This is support. That's where you want to be buying. That's where you want to go long. Whenever you know we were looking at SanDisk. It's the reason I opened up a long trade on SanDisk at a thousand fifty-six dollars cuz we were at support. I wasn't buying SanDisk when it was right here or when it was right here or now that it's right here because I don't like to buy under resistance. I don't like to buy when the odds aren't in my favor. And so the best thing to do right now in my opinion is to sit back and watch and wait. If you got your purchases in on you know a Micron for example in these lower levels or SanDisk got its lower level, there's no need to rush it right now. Let's see what happens. They're about to come up to these major tests. Let's see what happens. Do they start to break through them? Because if so, great. That starts to open up that door for the upside momentum and some real juicy gains. Or do they get rejected off of them and start coming back down? Because if that is the case, yeah, then you have another opportunity to start doing a bit of accumulating. So, the way that I see it is that if Micron's about to run to an all-time high, your best purchase um the best time to be purchasing is behind you right? It's behind you. And any purchases that you do now, you're just taking a risk. You're taking a gamble of going into a loss if it gets rejected. So, I think if you were going to buy, it was best to have bought back here, right? If you're going to buy now, just understand that you're taking a really big gamble. But, there can be an opportunity, right? If they do get rejected and we do see a bit of a pullback going in the next week, that you can get some decent buying opportunities there as they start back testing support. So, if I'm a buyer, I'm either looking for them to to come back down and give me a buying opportunity, or I'm just going to look for other opportunities in the market to buy. Maybe like an AMD, right? As AMD is still at these lower levels, or something along those lines. And the same thing goes for SanDisk. I would not be buying SanDisk right here while it's directly under number three, while it's directly under the golden zone. It's just too risky, right? It's just too risky to buy something that's directly under a seller's seller zone. Now, does this mean that SanDisk can't just go straight up through number three, or that Micron can't just go straight up through number two? No, of course they can. Of course they can. I'm not saying they can't. Look at what they've done before. Look at how they've broken up before. Obviously, they can. I'm just telling you that the odds of it just going straight up now are not going to be in their favor. That is going to be a That is going to be a hard move to make. That won't be an easy move to make, especially in the market that we're in right now. So, I wouldn't count on it. I wouldn't bet on it. Hope for it. Totally fine to hope for it. But, betting that that's going to happen by buying directly under resistance zone is a little bit risky, in my opinion. I'd rather, again, be waiting for a pullback to purchase, or just not purchasing because I just missed my opportunity to get in at these lower levels, you know? Buying something like Micron that is currently up 39% over the last little bit here, it's just risky, right? Now, look. Let me be honest, right? If you're someone, hypothetically, who thinks that Micron's going to $2,000, you're dead certain of it. You're someone who thinks that SanDisk is going to $3,000, you're dead certain of it, or $4,000. No, this is a great time to buy still, because you have a long-term mentality, right? So, I'm not speaking to those of you who are willing to go through, you know, a month of being in the negative if it does get rejected and it has to cool down a bit. I'm not talking to those of you who are willing to wait through, you know, a few weeks, or maybe, yeah, a few months of this thing not making gains in order for it to make gains. If you're willing to hold this thing for a year until it goes up to $3,000 or 2,500 bucks, or Micron going up to $2,000, if if you're willing to take wait, if it's going to take some time, that's totally fine. I'm not talking to you, who those of you who are long-term investors. If you're a long-term investor, the best opportunity to purchase was yesterday. The next best opportunity to purchase is today. Just buy the dang on thing. Don't try to time it. Long-term investors shouldn't be trying to time stuff, unless they're doing macro investments, right? But, I'm talking more to you those of you who are looking for those short-term, mid-term good opportunities to enter. I don't particularly think now's the best time to buy. I would just be waiting it out, and then it'll feeling out the resistance, seeing how it goes. Do Do we get rejected? Do we come up through it and then back test it? That could be another great opportunity to accumulate. We break through it, we come back down, we start flipping that uh that previous seller zone into a buyer zone. Boom. Now, there's an opportunity there, right? But, there's a lot of danger here. And when I turn on the toolkit, you're going to see exactly what I mean. Look at what's happening from a toolkit perspective. Micron, for example, is now sitting on the 4-hour chart at a 4.24 reading. You all know, my sell reading is a 4 to 5, meaning that Micron is sitting in my short-term sell zone. The last time that Micron saw reading this high was back here. It was sitting at roughly No, it didn't even get this high back here. Last time that Micron got this high was way back whenever it put in that all-time high. This is a really, really high reading, especially on the 4-hour charts, all right? And as you can see, the toolkit is telling us, "Hey, this thing's getting a bit high." And then whenever I go in and turn in in zones, you can also see what I mean. Look at all these sell zones sitting directly above us. Sellers are going to be at 997, 1018, 1035. I mean, it's all directly above us. And so, there's just again a lot of danger there. Look at a Micron, or sorry, look at a SanDisk for example. SanDisk is sitting even higher at a 4.68 with a seller zone sitting directly above it. This is a massive, massive seller zone that is going to try to stop the price from going up. And the question that we need to answer is whether or not it'll be successful. We've done a great job at breaking through some of these other seller zones, but the question is, do we get through this one? I don't know. I sure hope so. I really, really freaking hope so, but I'm not going to go in and start doing a bunch of buying right now betting that that's going to happen. So, the best thing to do in a situation like this is just hold. Just hold. Be willing and okay to sit on your hands and not do anything. That is one of the best moves that you can make as an investor sometimes is to not do anything. That is a huge part of the reason as to why I've been able to go in and build up this portfolio that I currently am sitting on, you know? I mean, the portfolio's looking pretty good. I think it may be a little bit down today. No, but you know, this portfolio's up $77,000 this year. It's up $103,000 all time. This is just a public portfolio [clears throat] because I can go, "You know what? I ain't doing anything today. I'm just going to see how this plays out." Do I feel a little bit of FOMO? Sure, I got stopped out of my Micron trade right before it ran. Yeah, I feel a little bit of FOMO, but that's normal. It's natural. I don't care, right? It is just the game that we play. So, the best thing to do right now is hold. This is a great moment. It feels great, and I sure do hope we continue upwards through this, but it's just going to take a little bit of time, and we're going to need to see how it goes. So, I'll keep you guys updated as it plays out, but this is going to be very important again, not only for just Micron that's trying to break out and SanDisk is trying to break out, but I think this is going to have an impact on things like AMD. I think it's going to have an impact on things like Nvidia, SK Hynix. Um what are some other ones? Funnily enough, even a SpaceX, right? I think if we can see Micron and SanDisk really gaining momentum here and starting to push through these zones, it's going to bring a little bit of confidence into the market. I think you're going to continue to see the Kospi for example pushing up as it's breaking out. I think you're going to be able to see some of, you know, your Samsungs, for example, them continue to try to break out because it's giving the market more confidence that we are actually back, that this isn't just one of those moments like we've seen over the last few months where, you know, we get a pump and we immediately dump, or we get into pump and we immediately dump. People are starting to believe that this could be a sustained move upwards and clearing through the number two zone, or the number three zone, could be exactly what the market needs to really start fueling up that AI trade again. So, this is going to be very dang on important. This is going to be very dang on important, especially as we go into next week. And I'm going to be here every step of the way, keeping you updated as it all does play out. So, that's what's going on. They're breaking out right now. They're doing an absolutely amazing job. Many of your and our purchases are doing extremely well, up 10, 20, 30, 40%. If you're on leverage, even higher than that. And they're doing an outstanding job, and they could really be back. But, we're not out of the woods yet. There's a couple more steps that they need to complete before we can go, "Oh my god, they're going towards all-time highs." So, if you're an investor, sit on your hands a little bit right now, and let's just watch and see how this plays out. Now, remember, I'm not a financial advisor. I'm a random dude sitting in a purple room somewhere in a random place in the world. So, only take what I'm saying with a grain of salt. But, listen to what I'm saying. I've been in this market a long time. I've seen the ups, I've seen the downs, and I know when it's best to just go, "Hmm, maybe let's just sit back and watch how this plays out first." And I think this is one of those moments. So, I'll keep you updated on that. I hope you guys have been enjoying all of the content that we posted this week, the shorts, the live streams, and much more. Don't forget I do have a few links down below if you want a little bit more from me, and I can't wait to see you all in the next one. Peace out, everybody.