News

BlockBeats reported that on July 3, trader 3X Long Labubu stated that, based on technical signals, the short-term outlook for the semiconductor sector is bearish, especially for memory and semiconductor equipment. The trader has already exited related positions and shifted to more defensive software and the Magnificent Seven stocks in the US equity market. The rationale is that the KOSPI index in South Korea often serves as a leading indicator for the semiconductor cycle and has now fallen below the 50-day moving average, while Micron Technology has also dropped below the 21-day moving average. The trader plans to reassess next week. If Micron Technology (MU) reclaims key levels, positions will be automatically re-entered through buy stop orders.

LME aluminum futures closed up by 16 USD, at 3,092 USD/ton. LME zinc futures closed down by 12 USD, at 3,487 USD/ton. LME lead futures closed up by 10 USD, at 1,876 USD/ton. LME nickel futures closed down by 105 USD, at 16,250 USD/ton. LME tin futures closed down by 672 USD, at 50,960 USD/ton. LME cobalt futures were flat, closing at 56,290 USD/ton.

On July 3, typically, a 30% rise in the Nasdaq 100 Index over three months would prompt investors to take profits. However, they are currently betting that this upward trend is just beginning. Demand for call options on the largest exchange-traded fund tracking the Nasdaq 100 is growing faster than the overall market, indicating that funds are rotating into AI and growth stocks. Data compiled by Citigroup shows that, according to one metric, the cost of call options on tech stocks relative to the S&P 500 Index is at its highest level since 2007. This pattern is not without risks, as concerns grow that the AI trades dominating market narratives for most of this year may be overheating. On Wednesday, the Nasdaq 100 Index fell 1.5%, underperforming the S&P 500 Index, which closed nearly flat, and on Thursday, the index again lagged behind the broader market. Brent Kachuba, founder of options platform Spot Gamma, commented on tech stock call options, stating, 'Traders are currently in an extremely bullish state.'