Yesterday's bounce didn't feel like the real thing: Better day off the open, especially given where we started, but the fade into the close wasn't capitulatory action. No real washout signal yet, so nothing here says chase the bounce.
$PENG's Kimi K3 selloff looks overdone: $PENG got hit disproportionately yesterday, looks tied to fears around Kimi K3's new Delta Attention (KDA) mechanism and what faster inference means for memory demand. The read here is that the connection doesn't really hold up, a faster attention mechanism doesn't kill the case for more memory. If that's right this looks like an overreaction worth watching, if wrong the memory-demand thesis takes another dent.
Momentum unwind may still spill into the index: A macro read going around argues the gap between this historic momentum unwind and $SPX sitting near all-time highs can't hold forever, and that the unwind eventually bleeds into index weakness. Lines up with what we've already been tracking this week, the ABI signal cluster and the loss of ES 7575. If that combo plays out, more chop or a real leg down could follow. Don't be a hero here.
Staying concentrated in AI despite the momentum reset: Instead of chasing the rotation out of AI into whatever's next, the call is to stick with the concentrated AI book. Months of research and the underlying trend haven't broken just because momentum did, and rotation-chasing after a reset like this is framed as the bigger risk than staying put.
Aggregated and distilled by Two Sentence Traders. Not financial advice.