Yesterday’s market activity saw a narrow range despite a pickup in volume, with the Pro-Momentum tilt driving gains in tech stocks. The 12-month winner-loser breakdown showed a +6% gain for the former and a -1.5% loss for the latter. Within the tech sector, there were notable performances from chipmakers, with CRWV up 20%, LITE up 13%, and SMCI up 19%. On the other hand, software and internet stocks saw a reversion, with prices falling by -1%.

In terms of individual stocks, Intel (INTC) saw a 3% gain after its recent offering, while SPCX (200 million share published short position) saw a 9% gain post-lockup strength. Our floor level was rated as a 3 on a scale of 1-10 for overall activity levels. Asset managers and hedge funds were net buyers in tech stocks, with GS sales contributing to the demand.

The continued interest in China ADRs and Korean chip makers overnight was also notable. In China, there was strong price action in ADRs, while in Korea, there were reports of increased investor interest in Samsung and SK Hynix. These developments highlight the ongoing appetite for riskier assets and the growing importance of emerging markets in the global investment landscape.

Overall, yesterday’s market activity suggested a cautious optimism among investors, with a bias towards tech stocks and a willingness to take on risk. However, it is important to note that the market is inherently unpredictable and subject to sudden changes in sentiment. As such, it is crucial for investors to remain vigilant and adapt their strategies accordingly.