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August 21, 2026
Hey traders!
Memory Space Outlook
I like the memory space here, and I’m currently long MU. Historically, this ticker has rallied going into earnings. Today it closed very positively and is now trading above the 50 SMA—exactly the zone I prefer for new longs. The ticker is entering the Earnings Hot Zone on Monday, August 24th (the pre-earnings window when stocks often rally on bullish anticipation ahead of the report). That timing lines up with the next earnings report expected in late September (around the 22nd–29th).
Yesterday’s (August 20) announcement of Micron Research Labs—a new U.S.-based long-horizon innovation hub in Boise backed by a planned $10 billion investment over the next decade—plus CEO Sanjay Mehrotra’s comments that “there is no AI without memory” and that data-center customers are seeking roughly 50% more supply than Micron can currently commit, only strengthens the structural demand backdrop.
Volatility is still low right now, sitting ahead of the typical IV expansion we usually see into the event. The historical average move during this pre-earnings window has been about 13%. On the chart, MU is consolidating into a daily squeeze, which historically resolves in the direction of the prevailing trend—upside. I’ve already positioned with a bullish butterfly in the options market targeting $1100.
September Seasonality Opportunity
I like to buy long-term stocks during the September/October bearish seasonality window, and I’m eyeing an addition to the DRAM ETF (the Roundhill Memory ETF). This pure-play memory ETF gives exposure at a much lower price point than buying shares of MU, STX, or SNDK directly—perfect for kids’ accounts. It currently sits under resistance at the 50 SMA on the daily chart, around $60 (recent trading near $57–58). A clean break above that zone would open the door for a move back toward previous all-time highs, supported by the same AI-driven DRAM/NAND supply crunch expected to persist well into 2027.
STX & SNDK Watchlist
Both STX and SNDK are stuck below the 50 SMA on the daily chart, which is not ideal—I don’t like going long under that level. I’m watching both closely (along with peer WDC for the same storage-demand story). If/when they break out above the 50 SMA, I’ll be looking to get long.
Broader Market Caution
All of that said, Nasdaq futures remain stuck below the major 30,000 resistance zone. With an increasing put/call ratio, rising volatility, and classic September seasonality starting to kick in, I’m reducing longs and getting ready to hedge using SMH and QQQ if we see two closes below the 50 SMA on the daily charts.
Stay sharp and manage risk,
Disclosure
Trading involves substantial risk of loss and is not suitable for all investors. Past performance is not indicative of future results. Options trading can result in the loss of the entire investment and, in some cases, more. The information provided is for educational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any security. Always do your own due diligence and consult with a qualified financial advisor before making any trading decisions. Positions mentioned may be held by the author and are subject to change without notice.
