I think that’s part of why the positioning hasn’t worked so far the basket is down about 17.5%. In hindsight, STX and WDC have shown exceptional near-term strength that I underestimated relative to MU. It’s been a difficult relative trade, as even most of the short legs currently have solid fundamentals and improving outlooks.
I’ve since reduced exposure on several legs and increased the MU overweight, but at this stage I view the pair more as a barometer for when this relative dynamic begins to matter. It could still be early, potentially by a year or more, assuming the underlying thesis is even correct.
still in this one?
No I was stopped out. That said, I still find this idea interesting until the memory cycle fully plays out.
I think that’s part of why the positioning hasn’t worked so far the basket is down about 17.5%. In hindsight, STX and WDC have shown exceptional near-term strength that I underestimated relative to MU. It’s been a difficult relative trade, as even most of the short legs currently have solid fundamentals and improving outlooks.
I’ve since reduced exposure on several legs and increased the MU overweight, but at this stage I view the pair more as a barometer for when this relative dynamic begins to matter. It could still be early, potentially by a year or more, assuming the underlying thesis is even correct.