closing thoughts 21 may 26

memory opened strongly with SNDK in particular surging 10% while MU did 3%. $SNDK has the highs of 1620 within reach. Given the topside skew, call flies are actually of decent value to express upside views.
beyond semis, i noticed another sector with extremely strong performance that is not talked about much on X - fuel cells. $NBIS signed a deal with $BE - this has started repricing $BE, $FCEL and $ENPH. The battery names are up ~10-30% today putting in a very strong performance. For $ENPH, this got a mention by citrini prior for having high short exposure. My expectation is for this to squeeze up, the next resistance looks in sight only at ~120s mark.
$NVDA continued to trade limply. My personal take on this is that $NVDA has become a "value play" trading at 16x fwd PE, however semi degens are looking for the next 5x or 10x and would rather past on a steady compounder. Meanwhile pods use this as a funding short - zeroing out their sector beta to magically get much nicer "ratios". The only natural class of buyers for $NVDA are then...value hunters in a growth space. Which is rather like asking who wants to eat mac donalds in a gym.
SPX had ping pong action from headline bonzana - not something fun to trade. Though firmness here opens up 7600s as a region where it could test appetite. To frame this into context, this is roughly at ~20x of 2027E EPS of ~380 (MS est) with EPS growth of ~10%-15%....from you guessed it. semis.
Good night!