MU’s rally was not healthy strength.

It looked much closer to what Wyckoff described as a buying climax.

The stock moved almost vertically, with barely any meaningful pullback, while RSI reached close to 87.

That kind of move often creates the illusion that the stock is “too strong to fall.”

In reality, the higher it rises without consolidation, the worse the risk-reward becomes for late buyers.

Anyone entering near the top was buying after most of the easy upside had already happened.

The problem was not MU’s business.

The problem was the price structure.

When price becomes too extended above its moving averages, momentum traders keep chasing, short sellers are forced to cover, and FOMO attracts the final wave of buyers.

That is exactly when risk is often highest.

A strong company can still become a dangerous trade when:

• RSI is extremely overbought
• Price rises without proper pullbacks
• Volume expands near the top
• The distance from major moving averages becomes excessive
• Buyers enter mainly because they are afraid of missing out

After the climax, MU became much more volatile and started correcting toward key support.

This does not automatically mean the long-term trend is over.

But it proves an important lesson:

A good company is not always a good entry.

I would rather miss part of the rally and wait for a proper pullback, consolidation or new accumulation structure than chase a stock after an almost vertical move.

Buying strength is not the same as buying late.

The difference is whether the structure still offers acceptable risk.

#MU #Semiconductors #Wyckoff