pre market thoughts - 5 Jun 26

US yields unchanged overnight. In asian markets, KOSPI was down 5% today, while NKY was down 1.5%. Post the US close last night, markets immediately started to soften with NVDA dropping from 220s and $MU break down. This has continued on into the asian session overnight markets today.
Yesterday, i also pointed out that the selling pressure into the open would quickly reverse, and it did. For today, the picture right now looks alot more murkier and i would recommend grossing down exposures or consider simplifying names within the book. Again, i continuously harped about the cheap cost of protection available...,buy the umbrellas before it starts raining.
In memory, KR is impacted sharply vs 285A Kioxia. SK Hynix is down almost 12% for the day. Again - in my past note i have referenced the leverage within the KR stock market and it is quite likely for this sell out to become self perpetuating as we hit cascades. If markets firm up tonight, 1466 level on SK Hynix would be a good level to derisk out.
In neoclouds, $NBIS is putting in a very strong performance versus peers as it continues to be resilient in drops vs names like $CRWV $IREN etc. Next week $ORCL earnings will be one to look out for the neoclouds sector
Crypto continues to trade weakly with $BTC revisiting the lows. Meanwhile $ZEC has a huge drop over night with a move down $300. $HYPE was also not spared dribbling down to 60. As i mentioned before, crypto leads liquidity flows and what we are seeing is a withdrawal of liquidity from the system as funds gear up for the SPCX IPO.
Good luck!