Tech stocks continue to pull back. Should you cut losses on floating losses? Wait for a retracement opportunity in the memory chip sector.

Many investors are wondering whether tech stocks are still buyable after two consecutive days of correction. For those who entered early and are now facing losses of 5% or even 8%, the question is whether to cut losses. Here are my views today. 1. $Nasdaq Composite Index (.IXIC.US)$ First, let's look at the Nasdaq Index. After opening yesterday, the Nasdaq quickly dropped to around 26,200, where it found clear support and began to rebound. The daily chart closed with a long lower shadow, indicating significant buying resistance near 26,200. However, please note that a long lower shadow does not necessarily mean the correction is over. The key level to watch now is the support zone between 26,200 and 26,000. If the index can hold this level over the next 1–2 trading sessions and further rebound to 26,600, then this short-term correction may truly be nearing its end. Therefore, there is no need to be overly pessimistic about the index at this stage.

Next, let's look at the memory chip sector. Although the entire sector continued to correct yesterday, I believe its performance was relatively resilient compared to other major tech themes. This suggests that even as overall sentiment in the tech sector cools, there is still significant buying support beneath memory stocks. This is why I maintain that the mid-term price logic for memory stocks has not changed despite two consecutive days of correction.

2. $Micron Technology (MU.US)$ Yesterday, Micron quickly rebounded after testing the $915 support level, and the after-hours price has returned to around $950. For those who entered early in the $930–$940 range, as long as your position size is not heavy, I believe there is no need for excessive concern. From a structural perspective, the $915–$880 range remains a key support zone for Micron. Even if Micron experiences a more significant secondary pullback in the future, we can wait for a deeper level to make a second entry to average down our cost basis. If you still feel Micron's current price is too high and prefer to wait for a deeper correction, there is no rush. You can wait for the $915–$880 range. If Micron's stock price adjusts to the $880 level, it would be a better initial entry point for investors currently holding no positions in memory stocks.

3. $SanDisk (SNDK.US)$ Another core ticker in the memory sector is SanDisk. Although it saw a significant decline yesterday, its pullback is not actually that exaggerated when viewed in the context of this rally. From a technical structure perspective, the first wave of SanDisk's rise was very complete. If the stock continues to correct, finding support near the 10-day moving average (M10) would provide good backing. Therefore, I still consider the $1,500–$1,450 range to be a decent zone for phased accumulation. However, I must emphasize one point: SanDisk's stock has very high elasticity. If you really want to bet on a single high-volatility stock within the memory sector, keep your position size small.

In the next article, I will continue to discuss optical modules, Circle (which is currently at a low valuation), and new opportunities for positioning in undervalued stocks. $Lumentum (LITE.US)$$Circle (CRCL.US)$

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