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Pro Analysis

MKM has a new play for tech fans: 'Long Micron on the pullback'

MICRON TECH-M&A/TSINGHUAUNIGROUP
Kai Pfaffenbach | Reuters

While technology's bullish run this year has many on Wall Street wondering if the sector is set to roll over, MKM Partners recommends investors buy Micron and "buy the dip."

Pointing to a 1.5 percent decline in the Technology Select Sector SPDR ETF (XLK) last week (down 1 percent Monday) and a 31 percent increase since January, strategist Jim Strugger suggests there may be a hidden buying opportunity.

"We think helpful seasonality aiding an already strong equity market will produce strength right into the new year and expect technology to recover quickly from this pullback," wrote Strugger on Monday. "Micron Technology is a name we like getting long on recent weakness. The stock dropped 15.5 percent from its high last Friday."