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Hey guys, welcome back. Had to step out of my meetings and share this video cuz of the momentum we're seeing right now is insatiable. We know most of the retail hype this week was following the SpaceX IPO. I heard nothing about nothing else about that in the headlines, but us on this channel and the smart money overall, we follow the memory sector.
We follow some different dynamics and signals in the market. And today guys, we just got one of the biggest validations that we have seen yet in the memory sector. So, earlier this morning with the Wall Street Journal, uh Tim Cook he openly admitted that they can no longer absorb the skyrocketing cost of memory and they're going to be forced to raise their prices on their consumer hardware lines.
So, when the most powerful supply chain negotiator in the world and corporate history, when they officially lose its pricing power to component vendors, it tells you that the leverage has permanently shifted, that the leverage is now all in the hands of the memory suppliers, the memory titans overall.
So, today the purpose of today's video is simple. We're going to break down why Wall Street is locked locked in a state of absolute panic buying ahead of next week's earnings with Micron. We'll break down the massive price targets that we're seeing right now. They are chasing Micron to the 15 $1,600 level.
So, I'll go through each and every one of those new those new price targets that hit the streets today. We're going to take a look at the performance of the stock of the memory titans overall. We'll take a look at that candle pattern chart that just had explosive conviction overall throughout the day.
And we'll talk about the option the option expiration dynamics that we're seeing in the market today and how that's fueling the mass a massive mechanical short squeeze overall. So, that's what we want to get into in today's video overall. As you can tell by my tone, I'm pretty excited about what we saw with the memory stocks today overall.
Micron is just flying right now. It's absolutely awesome to see. The other stocks are moving too. SanDisk, Western Digital, Seagate not as much. We'll talk about that in a moment, but going into today, I wasn't sure how these stocks would how they would react with the with the triple and the quadruple witching day today we have with the options expiration date overall, but we got our answer.
With a little less than an hour left in the market overall, I think it is clear. It has been a squeeze that has driven these stocks even higher heading into the weekend. So, let's jump into it. Let's talk abou. Guys, thanks for all your support. Let's keep it going. Let's see if we can get this up over 26,000 with this video and keep this channel moving in the right direction.
So, first I want to show you just how the market performed so far today. Guys, you can see on the screen we had a massive day across the entire tech sector. Look at the green across the board and many of the stocks that we follow on this channel. Look at Micron. Over almost over 9% gain. It's come back a little bit as we're getting close to the end of the day.
We're seeing a little bit of a pullback. It was over 9 and 1/2% just about an hour ago or so, but we're growth. Broadcom, about a 4% gain. That's great to see with that stock. And if I look down here for the three other members of the memory titans, we see SanDisk absolutely on fire today. Up over 10%.
Western Digital is doing what it has been doing all week. Closing in on almost a 5% just under that. 4.76. Seagate is the difference one today. It's had a great week overall though, but all the love recently the last couple days for the storage players has been going to Western Digital. But, don't want to discount Seagate at all.
They've had a phenomenal week. We're seeing a little bit of profit taking today, but they will end the week up over a thousand. Looking at about 1,055 right now. So, there were a few things that drove today. I'll pull this up from Barron's. I just want to call it out. You can see on the left, markets rebound as Iran peace deal eclipses the anxiety about Fed rate hikes.
We saw the deal get signed between President Trump and the leader of Iran earlier today. And that just brought significant it just removed all of the anxiety from the market. It brought capital rotating back in now that the Strait of Hormuz is open. Look what it did to the Nasdaq here. You can see the Nasdaq just flying.
Look how high it's jumping over all across the board. That is a huge sign overall for it. But the other piece that I said in the opening that just ignited Micron and the memory stick stocks today was this headline right here. You can see Micron start surges towards record high. Thank you, Apple. And so let's pull up what they actually said in the Wall Street Journal.
You can see here Apple raises prices due to memory chip crunch, Tim Cook says. If I scroll down, you know, Apple plans to raise prices on its products to offset the surging cost of memory and storage chips. Tim Cook said in the when he sat down in interview with Wall Street Journal. If you look down below, skyrocketing demand for memory and storage chips from artificial intelligence companies has pushed up their costs so much that Apple would have to raise device prices substantially to maintain its its profit margins.
So that story was just a massive bolus a bullish catalyst I would say for Micron today. It was the It was the kind of catalyst that just caused this runaway freight train that we saw on the market. What we're seeing right now as we head towards the end. Because when you see Tim Cook when he has to sit down with the Wall Street Journal and have a confession like like he did about memory prices, it completely shatters the bear case cuz we know Apple is the type of vendor that ruthlessly squeezes their their supply vendors overall.
They squeeze every single bit of profit they can every single penny out of a deal with their part suppliers. That's what Apple is notoriously been known for. So for them to publicly concede that memory related expenses are aggressively pressuring their corporate margins is the ultimate real-world proof of an unyielding structural storage and memory deficit.
And to add top and to add on top of this, if I go back, this deal right here in Iran, I think is also a significant part of it because when you see yesterday when the Federal Reserve held their when they held that first meeting and they mentioned that they're going to hold interest rates that interest rates will be unchanged and that was kind of the announcement from Kevin Warsh.
That removed a major layer of near-term uncertainty. And on top of that, when we see this preliminary US-Iran agreement get signed regarding the Strait of Hormuz and it's going to be open now, that ignited a global kind of a broad global risk appetite sending the Nasdaq flying up almost 1 and 1/2%. A little over 1 and 1/2% you can see on the board.
And it provided a powerhouse tailwind for all of the equity markets. The other thing I think it did I've got to pull up is just this story that came across the board how Wall Street is scrambling to lift Micron price targets ahead of earnings. I want to pull this down. Look at Look at everything I want to show you here.
First, you know, driven by the insatiable hunger for data center memory, multiple premier research firms have now drastically hoisted their price targets pushing expectations into an unprecedented $1,200 to $1,500 range. And the last thing is here because because building advanced new wafer fabrication facilities requires at least 12 months, the industry is locked in a structural supply deficit where demand vastly outstrips output.
Now, we've talked about this on the channel for the last couple months, but we're seeing it recognized and obviously this was part was published in investing.com. But it Look at all of these price targets that have shi- that have shifted. So, you can see on your screen we have a wide range across the board.
[clears throat] Now, one that you don't see we talked about the other day is Elethia Capital. So, we know they pushed their price target to 1,600 a share. They were at 650, they went to 1,600. TD Cowen also pushed up theirs to 1,500. We also have Stifel here. They went from 550 to 1,500 as you can see.
Deutsche Bank went from 1,000 to 1,500. We see Rosenblatt from 600 to 1,200. Wedbush 500 to 1,300. And finally, we have Citigroup. They went from 840 to 1,200 as well. And the other ones we don't see on here is RBC Capital. They also set a price target of 1,200. So, we are seeing just massive price target shifts across the board for Micron.
They are chasing these price price targets. These analysts are chasing the price targets and pushing Micron as we head towards their June 24th print overall. The fundamental math behind these targets, it was clear. I just read it to you. The demand that we see, you know, the the math for these analysts is simple.
AI servers require an immense amount of HBM and conventional enterprise DRAM. And because building advanced new wafer fabrication facilities take at least 12 months as the article mentioned, the industry is locked in a hard supply ceiling while demand vastly outstrips the output. Furthermore, we also know that manufacturing specialized HBM wafers, they require three times the physical silicon wafer capacity compared to traditional DDR5 memory.
So, by absorbing triple the manufacturing real estate to feed AI titans like Nvidia and AMD, Micron has inadvertently starved the rest of the market of conventional DRAM. Ensuring that even standard memory chips fetch unprecedented premiums. With management signaling that the entire HBM supply capacity and supply is fully sold out under binding contracts through 2026 and well into 2027, the revenue visibility is absolutely flawless for Micron right now.
That's the strength that we're seeing in the market. That's why we're seeing it grow at such the rate we are in the conviction that we're seeing for the stock. And let's take a look at the candle pattern chart because I think that will show you conviction for Micron as well. Let me pull that up from TradingView.
You can see it on your screen here overall. But I want to first just show you look at what the gap down that we ended yesterday. Remember we talked about that in the video how we just had a bit of kind of profit taking algorithmic sell-off right at the end of the day. But, look at the gap up. Right when we started, we had an immediate jump up.
That stock jumped all the way to, you know, 11 six $1,116 uh right out of the get-go. And it continued to drive forward. I mean, I think that is the piece when you can see on your screen right now. It is a absolute textbook of institutional accumulation that you see. Notice this that massive gap up that I talked about.
The market didn't give retail traders a chance to buy a cheap dip today. We didn't have a chance to step in. It just gapped up and it continued to go across the board. The price gapped up aggressively higher and it completely cleared uh past yesterday's temporary consolidation that we saw. That pullback at the end of the day we saw yesterday.
And instead of experiencing this gap up and kind of a a gap and crap fade that we'll say, like you we see with stocks where they'll jump and then they'll get pulled back with immediate algorithmic profit taking or algorithmic selling across the board, we didn't see that with Micron today. It It established an incredibly tight ascending bullish channel all the way throughout the day.
Every brief consolidation that we saw with Micron today was met with an immediate high volume cluster of green institutional candles pushing the baseline steady steadily higher throughout the session. The RSI at the bottom, you can see it. It is consistently hugging the upper bounds signaling intense sustained buying pressure running completely unchecked.
Momentum never pulled for this stock today. Every consolidation attempt was immediately bought by aggressive buyers. If we jump over to take a look at exactly how the stock performed across the board or what's doing right now, you can see we're at 9 and 1/2%. Just under a $100 gain for for stock. Right about 11:42, we'll call it 11:43.
So, this is a jaw-dropping jump today. A massive amount of just conviction for this stock. We thought we would break through the 1,100 ceiling. That's what we think all of us on the channel were hoping for. Could we break through it and break through that psychological level for Micron? We did and we kept climbing.
We're up over $42 over that psychological level today. The daily range on the right, if you take a look at it across the board, you can see we're near the top of the daily range right now. We opened strong and pushed to this brand new high that we see. We have a new 52-week high of 11:45, 11:46 for Micron.
We're We're getting close to closing at that 52-week high. That would be a strong sign of conviction for this stock to close right at it before we head into this holiday weekend. You know, this moves Micron firmly past its previous record before. Let's see what it's doing to the market cap for the stock overall as well.
Market cap right now, you can see I'm I'm circling it in on the screen. It's right about 1.3 the board. This company is growing. It is moving aggressively towards that earning print that we'll see at the at the end of the 24th, middle of next week overall. But, let's take a look across the broader sector as well.
I want to pull some of these other ones up. You can see here SanDisk. You can see SanDisk jumped significantly today, 11%. You know, I said 10 and 1/2, you see it's 11 and 1/2. $2,226 gain. SanDisk is pushing close now to $2,200 a share. Hit its all-time high today, you can see on the right for daily range about 21.91, call it 21.92 as a new 52-week high.
The stock is moving significantly. If we look at Western Digital, we know Western Digital has been the star of the show this week, up $36, another 5%. It got up to almost $800 a share today at some point. That's the new 52-week high, 799.87. So, we had a bit of a pullback, but Western Digital hitting almost $800 a share probably would have been unheard of a few weeks ago.
I just want to show you what it's done this week. $41 percent growth this week for the stock. See today a 5 and 1/2 percent, this week 41% gain for Western Digital. The month 63, but it has been the mover this week for sure. Then let's take a look at Seagate. Seagate actually went up. So, that's how quickly these things change.
When I started the video it was down still a little bit. It was It was just a a little sluggish compared to the others, but we have seen a quick turn. It's up over a $1.61 today. Pushing towards a thousand 70 a share. You can see new 52-week high today. Got up to 11:45 overall. Um so, we are seeing We'd be interested to keep our eyes on this stock to see where it finishes.
But if we go down again, Seagate like I said, even though it was flat today, it didn't move as much, it still went up by almost 23% this week. You're looking at across the month of 44% gain. So, these stocks are moving. The The Fab Four had a fabulous week. I think we can all agree about that. And they're heading into a holiday weekend with a really strong a strong source of strength.
But I also want to call up our South Korean memory friends. You can see Samsung had a strong growth. SK Hynix up over 6 and 1/2 percent. Now, SK Hynix big news here today is they announced that it has successfully uh supplied They have successfully shipped some samples of their next generation 12 layer stacked HBM4E to major customers.
But guys, this doesn't hurt Micron at all. Even though they're shipping it, it doesn't. Because if competitors are already shipping the next generation HBM samples, it just confirms that demand is expanding faster than the industry can comfortably supply. So, this is a bullish sign for us as well in the memory sector.
It's great to see these guys moving. We know the the trillion-dollar cartel between SK Hynix, Samsung, and Micron, they are owning the market right now. And so, great week across the the I think this has been a fabulous week for the memory sector, but let's talk a little bit about, you know, the witching hours that we saw today.
Because we knew today was going to be a bit of a volatile day. We just didn't know what to expect, or at least I didn't know what to expect because the the the option expiration date got moved forward with the holiday tomorrow. It was a It was kind of a triple quadruple witching day today with the with the options expiration intentionally being pulled forward.
Trillions of dollars in derivative contracts, index options, single stock options are expiring simultaneously this afternoon. And when you combine an accelerated quadruple witching session with a real world supply chain confirmation from Apple, and a fresh multi-bank analyst upgrades that we saw today across all of those targets for Micron, you create a lethal mechanical trap for short sellers.
Over the past week, institutional and retail momentum traders aggressively loaded up on short-dated out-of-the-money upside call options for Micron. And so when Micron gapped up this morning and blew past its previous all-time highs, it forced options market makers into a brutal structural squeeze. And because market makers are short those calls, they are mathematically exposed to short gamma.
As the stock price rises closer to those high strike prices, market makers are forced to buy millions of shares of the underlying stock on the open market to keep those positions dynamically hedged. That forced dealer buying creates a self-fulfilling vertical feedback loop. A classic gamma squeeze for Micron.
So today's massive 9 and 1/2% extension isn't just fundamental or a a organic fundamental buying. It's a violent mechanical squeeze fueled by option expiration dynamics and index rebalancing flows executing directly on the tape that we saw today. So guys, in closing, today was an incredible day for the memory sector.
It was a fabulous day for the Fab Four, Micron, SanDisk, Seagate, and Western Digital just had an amazing week overall. And so, we are seeing massive institutional conviction for these stocks, particularly for Micron as we head into our their towards their earning print next week on June 24th. The question we should all ask though, is it too strong?
Is what we're seeing too good on the market? Are we setting ourselves up for a massive pullback, a post earn a kind of a a cooling off post earnings when Micron drops in the street like next week like we saw back in March? The reality is that absolutely could happen. Expectations are becoming extremely elevated not only for Micron but across the entire sector.
But, the signal that we saw today does tell us something. Today's action tells us that institutions are willing to pay higher prices despite knowing that risk exists. And that type of behavior is not something that you see near the end of a cycle or something that you see near the top. So, we'll have to talk about our expectations on what we think we'll see with Micron next week with their earnings.
What will happen with the stock right after they drop those earnings in the street? But, we're going to have to do that in another video because today we are going to celebrate the performance that we saw. We're going to celebrate the gains that we had across the memory titans this week. As I mentioned, it has been an amazing week.
And you know what guys? It's been a well earned week for each and every one of us that have demonstrated conviction with this sector. So, let me know in the comments below. How are you going to celebrate what we saw this week with the memory titans? What is your one thing you're going to do either tonight, this weekend with your family, by yourself, with your friends, whoever it is.
I'd love to know how you're going to celebrate this performance we saw because me, I'm about to head out to the golf course here here in Vegas. It's 105°. It's going to be smoking hot on that golf course, but you know what? Nothing's been hotter than what we saw with Micron this week. It has been an amazing week overall.
Let's enjoy what we saw. Let's enjoy the gains that all of our portfolios had. And I guys, I hope you enjoyed this video. I'll see you on the next one. Have a great one.
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