Middle East crisis weighs on tech stocks! High inflation risks loom; latest dip-buying levels for SK Hynix and Micron

Let's start with the biggest market news from the weekend: the U.S. is set to announce details of harsher economic sanctions against Iran, while Iran has adopted an equally hardline stance. Tehran has clearly stated that if the U.S. continues to escalate, it will block the Strait of Hormuz in response to the sanctions, preventing even a single drop of crude oil from flowing out. What truly impacts U.S. stocks is not the sanctions themselves, but the ripple effects. Rising uncertainty around the Strait of Hormuz could easily drive international oil prices higher. Sustained high oil prices may reignite inflation expectations in the U.S. With Treasury yields remaining elevated, the combination of high oil prices, heightened inflation expectations, and a high-interest-rate environment creates inherent pressure on high-valuation tech growth stocks.

Now, let's turn to memory chips

1. $SK hynix (SKHY.US)$ In pre-market trading today, SK Hynix's share price returned to near $160. However, the memory chip sector remains the most resilient and capital-intensive segment within the broader tech theme. Notably, trading volume for Hynix has shrunk over the past few sessions, suggesting that market participants are taking a temporary pause. If you entered a position in Hynix near $155 last week, I believe there is no need for excessive trading at this stage; simply holding your position is sufficient. Since the current price is not far from your cost basis, there is no need to abruptly alter your entire trading plan due to a ~2% pre-market decline. However, for those who missed the entry opportunity at $155 last week, this pullback offers a chance to re-evaluate entry points. If Hynix can continue to retrace to near $150 this week, that level would still be an excellent spot for initiating a first tranche of positions.

2 $Micron Technology (MU.US)$ Another core player in the memory chip sector is Micron. In pre-market trading, Micron's price approached $940. From a technical structure perspective, $910 remains a crucial short-term support platform for Micron over the past two weeks. For investors who completely missed the buying opportunity near $930 last week, if Micron retraces to near $910, I believe this could be considered for initiating a first tranche of positions. However, if you already entered near $930, there is absolutely no need to immediately add to your position due to today's adjustment. The gap between $930 and $910 is too narrow; adding to your position here would not significantly improve your overall average cost. Patiently observe how the market evolves. If a more pronounced correction occurs later, you can then look for a second opportunity to lower your average cost.

The next article will analyze AAON, LITE, and ASTS. $AST SpaceMobile (ASTS.US)$$Applied Optoelectronics (AAOI.US)$$Lumentum (LITE.US)$

If you also trade US stocks, feel free to follow me. I share daily market insights and stock-specific opportunities to help you plan your investments in advance.

78K Views