pre mkt thoughts 9 Jun 26

US yields slightly softened by about 1-2bps across. Asian markets were strong led by KOSPI bouncing 8%. 285A was also firm, with a bounce of 6.4%. Overall, asian markets firmed up very strongly and we are back to last fridays pre US session levels.
US pre market was also very strong with retail continuing to bid $MU. $MU now sits close back to the 1K level. If we take a step back and look at the recent (1 day long lol) recovery, we see that it is currently led by memory and other strong names. $MRVL etc. Other sectors like fuel cells, nuclear, neoclouds that were hit hard on the dip have not recovered much if at all and are just basing out.
What is concerning however is that the hyperscaler performance continues to be weak. This is no surprise given the market's anticipation of the equity issuance to come in order to finance the Capex. The direct reading is - bearish hyperscalers, bullish recievers of capex - (think $NVDA etc) - also notable is that $NVDA is saying that they will do 50% buybacks of their equity soon..... Besides the memory story - low PE etc...one of the most "undervalued" companies in the AI space has been $NVDA on a fwd PEG basis. It has also been stuck in a range since Sep 25....
Situational Awareness also dropped their performance ytd - 260% ! That is an incredible performance for just half the year. Given how Leopold has been seen buying puts...for those who say he will give back all his gains - that might not be the case!
Tying in, it was interesting yst that while we had a broad base recovery, Leopold's picks were considerably weaker - $NBIS, $BE , $TE etc all lagged their respective sectors.
$NBIS was the biggest laggard, while the neoclouds in general were up 7%, $NBIS was down 2% at one point even. Even $CRWV with a 1B jane street selling notice performed much stronger.
Good luck ahead!