MU's recent rally requires position sizing caution, but the rising 50-day MA signals that future pullbacks are strong buy opportunities.

Micron was the name that we had a really good earnings season with , right ? I mean, ES is doing very well. I think they added 225 or so in earnings per share this year , which was much better than the S&P 500 expectations. And now it's time for the micron.

So, I was actually looking at this, and there was another trader on our show who was really...I was trying to show this before the last 2 weeks , but the little consolidations that we saw here in late August and September, it does n't look very good to me.

However, with the breakout that Micron is seeing ahead of its earnings release in 8 days, what is your opinion on Micron at this stage?

It has given a very nice run from 900 to 1100 in the last week and a half. That doesn't mean it ca n't grow further, but it's something to consider in terms of position size. This anchor came from that last earnings report, and while it didn't put the entire market in a very bad situation , it did start the whole volatile situation we saw.

So, if we see it rally , I mean, I ca n't imagine it rallying for 8 days in a row, but there's no way to be sure about that. It has broken recent limitations , which is great. Right.

We've shown higher lows , and I think what we were talking about here a few days ago is that we started substituting the last 2 weeks of data into the 50-day moving average calculation , and that's why we now have a rising 20 and 50-day moving average.

So, this 50-day moving average will continue to rise, and that gives me confidence that when there is a big drop and then it turns around a bit , that will be a great buying opportunity. This is how I see it.