The Big 3: MU, ORCL, AAPL

get your podcasts. Welcome back to 2360. I'm Diane Hall. Time now for the big three. Three stocks three charts and three trades. Rick Duquette will take us through the charts. And here to take us through the trades. On today's list is Tim Bowen Chief Technical trainer. Stocks to trade.com. Tim good to see you. I haven't seen you in a while. Before we jump into the names on your list, I want to get your big picture take on today's market action. We've been staging a recovery today off the back of this latest CPI data. But what's your big picture take? First off, Diane nice to see you again. I still finally remember my first my first appearance on the big three. You actually gave me that opportunity, I think about a year ago. Somehow I'm kind of surprised you didn't fire me after that, but it must be a welcoming back. I appreciate that, you know? That being said, overall market wise, you know, it obviously was shaky week. We had the data yesterday. We get the data today. Two kind of opposite reactions between yesterday and today. But you know, a lot of when it comes to my approach to this market, you know, Rick knows this very well. The viewers know this very well. I mean, I'm all in on the AI trade. I mean, it's it's 90% of the stocks that I'm holding. It's 90% of the stocks with day trade, swing trade. I just look at it as a unique opportunity that I don't know if we'll ever see in our lifetime again. And because of that, I mean, the market kind of goes where the stocks go. And I think we're just getting started with this trade. Now if you're trading other sectors outside of that lack of opportunity. But when I look at the amount of opportunity in this space and then you add in, you know, what was great this week, actually loved that Wall Street Journal piece of the, you know, the, the AI doomer ism, as they say, total set up. I mean, like, again, I won't get into it, but there's this operation obviously being done. You know, as much as I love anthropic and open AI, they're just trying to build a moat. They want to protect their businesses, protect predominantly from the open source competitors. I'm a huge believer in open source. I think it's going to be the biggest, you know, story of AI. But when it comes to, you know, that Wall Street Journal piece and all the fear that AI is going to kill us all. Don't believe it, guys. This is going to if you're not using it yet, take advantage of it. It is the greatest technology in the history of mankind. And the stocks, in my opinion, are just getting started. And that creates opportunity. When you go to where the puck is going, in my opinion. Okay, so go to where the puck is going. So let's talk about where you see opportunity. And you did a great job back then. Not surprised to see you still with us, Tim. All right. Let's talk about the first name on your list today. It's micron. Listen, this one has been a huge outperformer, whether we're talking about it on a year to date or year over year basis. At times it can be bumpy though for micron. So tell us about your views and your thesis here now. So you know, really kind of the same. I mean, you know, again Rick's probably sitting there. He's like Tim's bringing micron again. But you know, I don't know how many times you know. And it's just that I say it a lot. I mean if the stock does no wrong or if it does no wrong, you stay long. And I'm glad you guys brought that chart up. I mean, we had that massive run up last year into this year. And then we kind of had that summer lull. You know, we just kind of chopped sideways undecided. But to me, I just think that that's building up pressure for the next breakout. I love when these stocks I mean, again, they get ahead of themselves maybe a little too far too fast. Even though the fundamentals and the business support it. And then they got to consolidate a little bit, kind of digest and, you know, bring new buyers in. And I just look at, you know, with memory, I mean, again, I mentioned, you know, like this MacBook that I'm talking on right now, I bought it at the right time. The same MacBook because of the cost of memory went up like $2,000. I mean, they can't make enough. They literally cannot make enough. I mean, micron is selling everything they can. And then actually saw a cool headline this morning. I mean, their business is doing well. I think they gave don't quote me on this. I think every single employee in Taiwan got like a $30,000 bonus and stock options. I mean, obviously micron is like, our business is booming. We're going to pay our employees. And you know, I'm sitting here trying to pre order another Mac studio and they're pushed out till next year with, you know, 256 gig or 512 gigs of RAM. You need memory to do AI and guess who makes most of it. One of the biggest is micron. All right let's cross over to the chart. Rick. Walk us through what we should notice. Yeah very true. Sometimes it can be hard to see the effects of these supply crunches. If you look for something as simple as a flash drive on Amazon, you can see that the prices have gone up significantly. But we can see here when we look at our chart, kind of an interesting situation because during our last earnings event on June 24th, we had a big pop that took us up to 1255. But it dissipated very quickly here. Now to the upside, we had this gap level to consider between 1123 and 1097. That was a important point that has not yet been filled here. So that could be an area that the bulls may be watching for the upside. We also had a repeated ceiling here near 1035. In the more short term, we had a small gap that formed here, our green line near 960, another one here that roughly matched up with some relative lows, didn't quite fill it near about 897. And then another gap here that was breached but quickly recovered at 780. Our prevailing pattern here, our blue upward sloping trend line was broken. That has since given way to a triangular shape here, between our two white lines converging toward each other, one pointing up, one pointing down, getting close to some kind of conclusion of that pattern as well here. So be on the lookout for a directional breakout to take hold. If we do breach one of these lines, we are slipping below our five day exponential moving average today in dark blue, coming in at about 985 right now. We also seem to have come come close to touching our 21 day EMA and teal. That one is at about 960. So that also is roughly in confluence with our trend line. So that points to greater emphasis on it as a potential breakdown point. RSI still trending upward for for now, but we seem to be on the verge of breaking through our green trend line here today. The day is still pretty young. A lot could happen, but for now it seems like that could be starting to develop. So look for RSI to dip below 50 as well. Much of the trading activity that we've seen in recent days has been between about 875 to 995, a bit of a larger range here. But that's where a very pronounced node is according to our volume profile study. So an important area to cross above would be that $1,000 mark based on the trading activity we can see here. Okay, good stuff there. And listen Tim, that bonus that is nothing to sneeze at. My gosh. I'm like, I can't believe it. 31 what translates to 31,000 roughly 3130 2000 in cash and then additional like stock rewards on top of that, good Lord, who's walking away? I got to send my resume to micron. Yeah, right. Hello, I love you, Schwab. Let's talk Oracle. Listen Oracle is it's having difficulty maintaining some momentum that we saw earlier. Let's talk through this one. Yeah. So with Oracle I mean I get the debt story. I mean I mean a lot of people are very concerned about them. You know taking on tons and tons and tons of debt. But you know, you kind of go back to my opening statement. I mean, there are times, I mean, there are times in history, you know, like I, I know, like, you know, in the standard, you know, financial consultant world, you know, debt is bad. Debt is. Let's cross over to the chart. Rick. We got, we got a little bit of technical issues there. So Rick, why don't you walk us through what we should notice in this chart here for Oracle. Yeah. As Tim was kind of saying it's this race against time for Oracle. They are you know doing this massive CapEx spending. And it is yet to be seen if the revenues that they are going to derive from it can catch up to the amount. They've spent tens of billions of dollars at this point here, kind of a flop of an earnings reaction to since this morning, things were looking quite a bit more promising. Now we find ourselves up only 0.3% on the day. Here you can see that we still remain within our upward sloping channel type shape here between our two white lines. After hitting our low near one 1450. So we've had a nice bounce from that point. We're up 34% from that low. Now. A relative high we established recently stands out at 171. That's the mark to beat in the short term. That's what we hit shortly before our earnings announcement. From there, we could fill a gap up here near about 198. That's a bit of a reach from this point here. But that's that's kind of the most important area to the upside beyond our recent relative highs that I can see for now. 139 A repeated floor that we also saw as well, kind of bottomed out there three separate times in recent days. So if we were to break down through our channel shape, that could be one key area to watch out for as well. For potential support. Our moving averages in this case show kind of a different picture. Three of them are three shorter term five day, 21 day and 63 day are clustered quite closely together. They are between about 150 and 155 or so. Again. So when we have multiple indicators converging at one level, it gives us an important confluence to watch out for. That would then open the door to perhaps testing our channel boundary. Meanwhile, the bigger and most important exponential moving average, our 251 day EMA in orange here representing one trading year 172 70 or so is where that one lies right now. So that could be a milestone to cross above to the upside here. Meanwhile, our RSI shows that we are above the 50 mid line for now. But you know not really making any big moves so far. All right Tim I know you. You're back with us. Now listen I guess the A I didn't like the comments and were like, listen, we'll tell you when we take over. We got to cross over to Apple now for time. Let's get into it. Your views on Apple. Yeah. And just to recap on Oracle, I did want to say one quick thing. You know, one thing you guys got like you and Nicole were talking about why does Adobe keep selling off. I mean listen Michael Burry can't fall out of a boat and hit water. The reason in my opinion Adobe keeps selling off. You see a long. And one of the reasons I like Oracle is he is short. So on Apple. That being said, you know this is an idea. I just keep bringing a lot like micron. It's a repeat from last week. My opinion is a little bit different. It's not all iPhone, iPhone, iPhone. It's more of that guy right there. Very excited about John Ternus and really, really excited when these desktop Macs actually get available. I keep, you know, trying to preorder. One is pushed out to January. But AI story, I think it's bigger than the iPhone right now. And a lot of people don't realize that. But you got a new CEO, you got all these new Macs with this AI enhanced hardware hitting the market. And then to me, I'm just kind of sprinkling the iPhone on as a bonus, but love this stock as an AI play. Then you add in obviously new iPhone. I'm probably going to go get the wife. That thing. It's huge. I don't know, but she wants one. A lot of buzz around this company, both from the consumer and from basically the prosumer and even data centers. You know, the story hit a week or two ago. Open AI was literally buying tens of thousands of Mac minis and studios to train hardware. They're using it because it's some of the best hardware out there. So basically they're selling everything at this point. Yeah. And this this week was not the usual buy the rumor, sell the news with Apple. Rick, why don't you walk us through the chart. Yeah. Things were looking quite a bit more precarious a few days ago. Apple was on the verge of crossing below its upward sloping channel type shape here between our two white lines. Actually, we even made some new relative lows beyond 313, but things were righted rather quickly. A big surge to the upside then. And now we find ourselves possibly even breaking out of the channel shape to the upside. So potentially a bullish breakout from an already bullish pattern. Our downward sloping trend line as well that began off those highs has been broken here. So now the next level to be on the lookout for is what happens here at this red line. Because that was a gap level near about 337. We also had some lows there where a gap opened up. That's been broken pretty resoundingly at this point near about 330, but that could be then a supportive area to watch out for, because that was also the site of our previous high. So the old support became a brief period of resistance that has since been broken. Our moving averages here are five day EMA and dark blue. 326 could be a supportive area to watch as well. 21 day comes in at about 319. We are pushing above our downward sloping red trend line on the RSI, so the next step would be to watch for a break into the oversold area. That threshold of 70. Our volume profile study shows that we are starting to push beyond some of our heavily traded areas into the lighter, thinly traded areas here, 328 to 336 is kind of the best we can do in terms of a clear node about where we are now, but the much more distinct area of heavy trading. Our node here is 308 to 314. That one is much more noteworthy as a supportive area potentially. All right. Thank you Rick. Appreciate that. That is our Rick Duquette and Tim Bowen with three stocks three charts three trades. Rounding