Micron’s short positions typically rise before earnings and decrease afterward, following a reversal strategy. Historical data shows strong pre-earnings sell-offs followed by post-earnings recovery. This year’s elevated short interest suggests a deviation from the norm.

Micron exhibits a weekly pattern where short positions increase during price rises and decrease during price declines. This behavior resembles a reversal pattern like that of NVDA.

The relationship is stronger in the week leading up to earnings and, to a lesser extent, in the week following earnings.

Typically, Micron sells off by 1.7% the week before earnings but recovers the following week. Notably, the standard deviation is 3.8% the week before and 8.2% the week after. The options market is pricing in a 9% move.

Although Micron rose this past week, short positions decreased slightly, which is contrary to the usual pattern and suggests bullishness.

Recently MU short position has increased measurably to a 1 year high with the market down.

The movement of Micron in the week before earnings is a strong predictor of subsequent price movement, exhibiting a high correlation. Historical data indicates a likelihood of a positive move following a 5% increase.

The trend of short positions continues past earnings; however, in this instance, the trend remains flat. The short position has not increased this time, reflecting excessive bullishness.

Micron’s earnings report is expected to impact short positions and price action. Investors should watch closely for post-earnings movement and potential bullish trends, as current market behavior deviates from typical reversal patterns.

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