Asia - 3 Jul 26

Post the strong close, all eyes were on KR and the JP market that started trading not too long thereafter. While both $SKHYNIX and $285A had an initial puke - $285A got to the 65k level that i highlighted was strong support in my note yesterday, both of the memory names are now trading much higher, staging an almost 20% bounce from trough to top.
This price action is extremely strong for a number of reasons - first, there are many people who were extremely worried about the leverage in the KR market. However, this episode probably indicates that much of the leverage has already been wiped out.
For $SKHYNIX, we have the ADR listing catalyst coming up, i see this as a strong event to trade into where it may even surpass ATHs again.
FLOWS
In terms of the price action in the US - we had a 4 sigma puke in momentum. The strong close also demonstrates that most of the funds/pods who needed to be liquidated, have already been taken out to the cleaners. Markets tend to mean revert and even small bids can send the equilibrium clearing price back up pretty quickly.
What is left is a positioning map that is almost pristine. Remember that amidst this sell off in momentum, SPX and NDX itself were relatively strong, held up by the hyperscalers and $AAPL's performance. Purely from an index perspective, if the momentum names experience a dead cat bounce even, this will launch SPX and NDX to all time highs.
Read that again,
CAPEX
Overnight, Semianalysis also has dropped an article saying that they believe that $META will in fact be accelerating capex - this is the same as my first read on the matter. Going into the end of July, we have the hyperscalers reporting. Alexandr wang has also came out to say that they have "big improvements in coding and agentic capabilities to be more competitive with other leading models"
By having this sell off triggered over fears of the hyperscalers reducing capex (which as anyone who did some due diligence will note, this is a market that is STARVED of compute), it allows for semis/momo names to massively outperform and surpass ATHs again as the hyperscalers announce....and increase their capex cadence.
I will be dropping some longer form articles over the weekend, with some datapoints. These are the datapoints that inform my thesis - they are the reason why i do not fear the sell offs. Instead, i welcome it as a chance to increase my positioning from a lower base. Sure, i may also take some MtM hits, but as long as i position correctly - i am facing a battlefield with my opponents (momo pods) cleared out.
TLDR
We had extremely strong price action in Korea, i am calling for this momentum sell off to be done and for select names to reprice quickly to ATHs.
In memory I like $SKHYNIX for the ADR listing catalyst, $SNDK , $285A.
On Neoclouds, i like $NBIS (structurally strongest name in the neos), $SHAZ (at friday's close it was below Leopold's price), $CRWV (rising tide lifts all boat)
On memory pooling, I continue to like $ALAB, $CRDO, $PENG, $MRVL
Again, for my new followers - I strongly encourage everyone to do their own due diligence. Do not blindly follow what people and I say. Even if we are right, the markets can test the thesis. Borrowed conviction is no conviction.