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SanDisk Storage Western Digital After stepping away from the storage sector in July, I’ve basically stopped participating in storage-related hype. Currently, SanDisk’s downward channel has once again shifted into a triangle continuation downtrend. As for Western Digital, it’s even worse—smoothly trending downward. For the past two months during my livestreams, I’ve been emphasizing that it’s hard for storage to replicate the insane 30x surge from last year or the 2-3x gains within a month. Compared to Bitcoin and other U.S. stocks, the cost-effectiveness of trading in this sector is dropping. Those paying attention should have picked up on this. On a macro level, finance has cycles—bull and bear markets. On a micro level, individual stocks have their own cycles too. Right now, SanDisk and Western Digital are no longer in a bull market cycle. Whether it’s buying stocks or crypto, we all know to go for the leaders. But in the storage sector, even the third, fourth, or fifth-tier players are showing K-line structures that indicate capital is starting to pull out. This is not a good sign for the storage sector. We need to closely monitor whether this trend will spread to Micron and SK Hynix.
