The Big 3: AAPL, MU, LITE

when you have someon that actually cares. Welcome back to trading 360. I'm Mar Kayden. It's time for the big three. We've got three stocks for you three charts today. Kevin Green taking us through those charts here today. Take us through the trades is Jessica Inskipp director of Investor research@stockbrokers.com. us. Welcome always, Jessica.th I'd love to kick things off with a b picture thought on the markets. What a week we have coming our way already so far even, but just with the big names we've got coming tomo The decision coming out of the fed. I mean, what are you looking at? Well, first and foremost, the fed decision is extremely important because that's going to help us tand what's happening within the bond market, which is very much influencing equities. Too high of yie is putting a cap on the stock market. So seeing those retreat or any fed commentary will certainly help alleviate those concerns. And then of course the big mega cap tech names and understanding that AI narrative. If anythe've learned from the filing of Anthropic's S-1 is that the AIarrative is certainlyriving markets, but it's also highlighting the fragility of markets, mea a simple S-1 filing can reignite and reinvigorate that trade, whereas other headlines can send it down. We that volatility and uncertainty, if you will. So from a technical ctive, though, I see a really good setup. We've got the Sox and Ducks finding support on one of my lower levels. When I look at the the weekly. 40 week I see the S&P finding resistance at the 13 weekly moving average that matches technology. Also finding resistance at the 13 weekly moving average. And then the equal weight index is actually above that 1 week moving average. So I see broader participation. I think that's a healthy setup going into earnings. We do need to maintain that. Or of course it could get worse. But o I'm actually very optimistic. re come into the big three today. And I know you have a name that you've long liked as your first pick here. You've got Apple as number one today. we had a lot of discussions about what the John Ternusra would look like, as he hardware man first and foremost, and certainly living up to that billing with the duo, the new cg f products, new and refreshed products coming our way. So is any of that tied to Apple in the big thr Well, it's certainly part of it because of the bignches that are happening right now. And you're right, it is myck pick of the yt remains my consumer AI pick. AI becomes part o everyday lif faster devices, a deeply integrated ecos And I think that could createhe multiyear upgrade cycle. That's what we're looking for forpple. But the difference is Apple has the financial strength to invest in that future whi continuing to generate substantial cash flow. So I'm looki for Agentic AI that could drive a multiyear Apple device upgrade cycle. Today we've got the M6 launch. I just upgraded my Mac, considering doing it again because it delivers five times faster device AI performance in comparison to the M4 launch. I've got the M5, so but for those power AI users, even for enterprise or excuse me for consumer, you aretilizing Mac just to even competitors. And that's important to know is the Apple products are LM agnostic which is a great thing for this the upgrade cycle and the Applers. And then but certainly not least should be number one is the cash generation. Took a look at the free cash flow quarter to quarter it reached in December of 2025, 51.55 billion. That was up 91% year over year. That, however, really went down with the lastuarter being around 31.91 billion. But it still really accelerated on June 20 And that was up 31% year over year. But if we're in comparison to the other hyperscalers in cash, Apple is boating really, really well with a super healthy balance sheet and a greatonsumer adoption. So sti stock pick of the year. All right. And as we lross the mag seve, Apple the top performer in the group. We'relo% both year to date. And over the last 52 weeks. So cagey as you look at the chart here. What are you seeing in the technicals. Well it istempting . Let's see if it's going to actually happen today. Apple has been performlatively well over the last year or so. Even when we did s stock kind o hit to the downside because of the AI narrative reallyt in its favor. But when it did have that breakdown, it was able to actually consolidate and hol 200 day moving average. And that's where we started seeing this kind of breakout to the upside, the higher lows scenario, which is obviously bullish. And right now we kind of have this triangle formation taking place, higher lows. And then we have kind of equal highs. And we've actually been trading in the same range for the last two weeks.y. And today we are trying to break to the upside here on the upper end of that rece level. And if we are able to do so, and you loo at an extension, talking about another 25 to $30 to the upside here from current levels. And that brings you to around $380 is your next major area of resistance. Now the RSI is making lower highs and higher lows. You can see that we are seeing a more of a consolidation when it comes to price actiich is why we kind of have that flat line on the RSI, MacD as well. I mean the 12 EMA and the 26 EMA pretty much sitting at the same level and flatt out here. You like the technical setup. You're aiming for a little bit of a breakout. If not, the 20 day moving average is going to act as your first area support. Then the 50 day moving average. If we look at the weekly chart, you get a little bit more optimistic around this name. You can see that the once again, it was making higher highs, higher lows when you're looking at the three year weekly. But we have broken this kind of nel n new highs. You're also seeinglfn the volume kind of fill out which means that there's a lot , of transactions taking place at these levels. We haven't seen a f bearish divergence on the RSI making lower highs for the MacD and bullish for 12 EMA above the 26 EMA. This is setting up on the longer t time frame to still be bullish for Apple. All right. And right now we're only about $4 off of those me highs that we recently hit for Apple. We're at 3.47 32% higher on the session. Jessica you've got micron as your nextk here. And I'm wondef free cash flow is a part of the equation here as well. Because I remember from covering their earnings it was about 20 times growth from fiscal year 26 to 25. It certainly was. So these next two picks actually are from a screen that I ran. You can run screens on so manyds a great stock screener. So I screened the l cap universe, about 1800 stocks. Then I look for EPS, estimated revisions for the last 30 days just to be positive, a revenue year overare positive, and then EPS revisions to be greater than the one month price return. Meaning I need to see the price versus the P and the E differentiation. When we're looking at for p e ratios, then I want to look at improving free cash flow per share year over year. And then I screen for the bottom 50%n their debt to equity ratio. So because we need to consider that with whatpening with interest ratronment. So that took me from 1800 stocks down to 20. And what's interesting is that was so dominated by information technology on that entire So that brings me to micron. They are moving beyond the traditional boom and bust memory cycle. AI demand constrained supply, long term customer contracts. They're improving profitability and cash while robotics, because of that tweet from Elon Musk, could provide next major growth opportunity. So you're right, they had that free cash flow turnaround. That's very positive. There is an AI bottleneck with memory shortages. Those are limiting AI systems configurations of performance. That is a catalyst for microphone. For micron we need that memory. And then there's the robotics catalyst. Musk predicts future RAM and demand for robot know we're moving into t AI that still requires memory. Micron is a beneficiary of that. And then there's contract visibility. If we look to three five year take or pay agreements, they help stabilize what I s in in future revenue demand support multi year, they growth. And the robotics is reae that I still think isn't necessarily captured. So high beta one here. But there's still, I think upwards momentum from a fundamental perspective. All right. So the potential for some volatility ahe mean if you if you at the momentum over the last month KG I mean it's really fallenff. But over the last few sessions, maybe turning things a we are seeing some optimism when you're looking at the last couple of sessions and maybe we do have a bounce back rally over the next couple of weeks here. Marley n we have seen the stock obviously have an outsized move to t upside. Jessica kind of already talked about the fundamentals, but from a technical standpoin could see around this $1,200 level. That's where the stock got a little bit stretched. You co see the pricen both to the upside and downside was very aggressive. You're talking about 5% or 8% days or 8% swings on a daily basis for about a and a half, two weeks. And that's where we started this breakout break down to the downside. We have this kind of hanging man candle, whicearish. We had the shooti star pattern which is bearish. We had a nice hammer off 20 day moving average try to maintain. And then we broke down below the 20 day below the 50 day moving average. And we have been kind of in this we can't call it a bear flag, but it looks like a bear flag only because we made higher lows and we were making higher highs. But the trajectory of price kind of still broke that particular flagattern. Now we're below the 20. We're below the 50. Yes, the last three days have b actually really good when it comes to the price action. And where you get aittle bit of optimism is that RSI is now starting to break to the upside here MacD starting to actually flatten out and even curl where that 12 EMA is trying to curl above the 26. EMA has not done it yet. But if it's going to be on that trajectory you can look at the 20 as well as the 50 day movi average as the first major area of resistance. If you're able to break above that, you're looking at around the $1,150 level as your next major area of resistance. If you go to the weekly chart, I would say this is a little bit more bearven though the next three weeks you could actually have a counter trend rally to the upside. The only reason why I say that, obviously we had an outsize. We had a consolidation. We are holding the lower area of support. We are below t 20 week movingeraget a little bit more bearish in the past, especially if you look back on March 30th of this year. We leveraged that 20 week moving average as an area of support. Right now it's going to act as an area of resistance. We break down. You're looking at $700 to the downside on the longer term time frame to the upside 1090. And then we are also seeing RSI makingower highs.acD still above the zero, but 12 EMA below the EMA here. Cautiously optimistic, you could see a counter trend over the next week or two weeks. But overall it still looks like there's some perceived weakness on thehnical front for this name. All right so the potential for some weakness from micron. But your last pick here is tied up in something I find myself talking about more and more Jessica. And this optical netwo build out as it ties to the AI data cente build out. You're looking at Lumentum Ticker Lite. What are you seeing in Lumentu and how did this one come onto your radar for big three today? Yeah, so sam screen as micron. Again, looking for something that has a sell off. But analysts still are revising EPS upwards. So that's the divergence that I'm looking for. And Lumentum was on that screen of 20 stocks. So Lumentum provides exposure to the nextI infrastructure bottleneck actually, which is that high speed data connectivity, especially if we're thinking about what's happening with space and data centers and so on and so forth within the AI narrative. But this actually digging deeper into Lumentum isning's results. They support the industry outlook. While ntum grog EPS expectations, that supports the investment case. Valuation and execution, though I think can still bee key risks for this one. But I'll give you the data actually that showed up on the screen. So the Corning earnings read through. So this is Corning not notumentum. Their optical revenue was up billion, which is well ab expectations. Now let's add some light revenue. So Lumentu that was up 109.3%ear over year in thel quarter, four of 2026, their earnings position. So revenue res are up 4.32%, while shares declined 13.12% over that 30 day period. So that's that divergence that I'm ing forr 13%. But EPS revisions of a little over 4%. That divergence is telling meerhaps we could have a b And then of course, that debt to equity ratio, that's something I'm layering on in addio free cash flow, as we have more attention to the bonet influencing equities, that was around 0.36. So we want to see a lowerto equity ratio, whets me know that they're funding more with earnings rather than gathering more debt and so on and so forth. So it's really more of that AI narrative I know we're talking about qui bit, but that's what's driving markets and that's what's driving earnings revisions. All right So as we as we look over sort of similar time frame to pullbackthis name, as we had with micron ntumo could you take us through what you're seeing in the charts. Yeah. We're going to keep this one relatively simple here. Let's look in Fy of this year. That's where we saw actually a very well defined uptrend or ascending channel, if you will, a well defined resist level as well as support. And the stock was actually able to trade in that type of manner for about two and a half, three months or so before we started seeing a stall out and then broke below the 20 and 50 day moving average. That stock then came down to the 200 day moving average, lasted there for two days. And then you sta seeing the stock actually get some aggressive buying action, or at least a near-term bounce once again, and establish another ascending channel for about two and a half, three months, making higher highs and lows within that channel. And then we did see a breakdown. Now we went and retested the 200 day movingge. We stayed there for about two days. Buyers stepped in and that's where we're at rig. Stock's up about 6% in the session. Where you're looking at is a former area of support on this previoushannel acting as an area of resistance that's sitting at around $900 or so. be looking at the 50 and 20 dayvine that, you're looking at the upper end of support, which is upper end of resistance, whichi. Now you c a little bitre bulliss well. RSI does look like it has bottomed out and ising back to the upside. MacD once again curling. You want to really get too ahe of it. But you can make the case that even nibbling these current levels makes sense in the anticipation of a MacD cross, which should give y some follow through over the next couple of weeks if that does occur. Now, if you go to the weekly chart, this is where I find very interesting for this name, obviously. I mean, if you're looking back in April of 2025, the stock was trading at around $57. No one really cared about it. And then you started seeing the AI exposure. And obviously it has ramped up aggressively to the upside. But we do ha kind of this cup and handle sharp cup and handle pattern with that 50 week moving a acting as an area support, the 20 week moving average is now acting as an area of resistance. Lower highs when you're looking at the RSI, MacD, a little bit more of a bearish formation here. You got to get above that 20 week moving average which is 865. We'reng above it right now. You got to close above that at the end of the week to really get some confidence. You can also see on the volume profile that the 880 ish area has seen actually a significant amount of volume, given the last three years or so. Cautiously optimistic on this one, you go back, you retest the 1085 level and you break out. You can look atothere upside from there, 12, let's say 1250 to maybe even $1,300. So at the end of the day, this is actually a really constructive chart breaking down in some respects on the longer term time frame. But if you're able to recover some of those key moving averages on the weekly, Ink you could probably get a little more bullish on this one. right. As we look at it right now, we've got a 6.5% move to the upside for momentum trading at And they do have their earnings event coming up on November 5th. So a potential st in the near term. Jessica really appreciate you being us.