Pre Market Thoughts - 13 Oct 26 Yields about 5bp lower across the curve as markets risk off and investors finally remember to dash for safety. Post the memory sell off yesterday, Asia was hit particularly hard today with the KOSPI dropping 6.6% thus far. NKY is down 2.2% at the moment. Memory names like SNDK and MU dropped further in pre market trading despite having already tanked ~8% yesterday. We have SNDK and MU both making new lows. MU has hit my target price of 950s and SNDK at 1400s-1500s to re-engage. I have also added some SOXL exposure into the close last night. However, this is meant to be a quick trade. I would cut it if new local lows are made. Energy remains the most bid sector while tech suffered (optical, memory, semis). META had a bounce yesterday as Zuck announced that they are at the frontier - and they will not be pacing it. This is a long term bullish catalyst for semis. My take is that positioning has been the main driving force for market moves thus far, especially for semis. Into Sep, we had HFs carrying the lowest exposure to tech that led them to chase the rally. After one of the largest buying for tech in weeks, we then had massive derisking again. To sum up - the market is trading against the aggregate position and testing for weakness. What about now? we are at very high gross exposure while almost having very little net exposure - this has been a driving for PAIN as the overall index has climbed to near ATHs. If managers dont pick the few stocks driving the outperformance, then their returns for the year would be terrible. Mag exposure is also particularly high - going into the mag earnings - i think this will be a cause for underperformance for Mags as well. Bank earnings will start soon, if this can push financials higher - it could broaden out the rally in indexes and also then lead fund managers to re add net exposure - after all, on low net exposures, you need your picks to perform exactly to drive returns. There is no hiding behind beta. In short, after derisking on 2 Oct (Posted on the terminal) and i am following the game plan from my note on 5 Oct - buying back into this equities drawdown. For crypto - i remain cautious in general. The picture for BTC looks much better than the situation in alts - where people are playing for attention driven pump and dumps in small caps tokens. See the $W unwind after i called it out yesterday. I dont think there is much point to be playing these games. Onchain looks bottomed and i would be deploying into a few tokens just for entertainment purposes. On PAPERTRADE - i think this has been an exceptional launch. Early farmers who liquidated themselves on large notionals definitely ate well - the staking rewards thereafter more than covered for early losses. I am waiting for a reset of the LP pool to go below 2M - which is quite possible given that there is currently 50M of delta and we just need a 2% move up in BTC/ETH to trigger that. Good luck!