Korean retail traders are dumping leveraged memory chip ETFs after months of bleeding out on $SOXL and similar products. The memory sector trade got absolutely wrecked — these 3x leveraged vehicles amplified losses as $MU, $NVDA, and other semis rolled over from peak valuations.
What's interesting: this is classic capitulation behavior. When the most aggressive retail cohort exits a sector after sustained pain, it often signals we're closer to a bottom than a top. Not calling a reversal yet, but worth watching $SMH and semiconductor ETF flows closely.
Memory chip fundamentals remain cyclical, but AI demand, data center buildouts, and inventory normalization could set up a strong 2H25 rebound if macro cooperates. The question is whether institutional money steps in before retail realizes they sold the bottom.
What's interesting: this is classic capitulation behavior. When the most aggressive retail cohort exits a sector after sustained pain, it often signals we're closer to a bottom than a top. Not calling a reversal yet, but worth watching $SMH and semiconductor ETF flows closely.
Memory chip fundamentals remain cyclical, but AI demand, data center buildouts, and inventory normalization could set up a strong 2H25 rebound if macro cooperates. The question is whether institutional money steps in before retail realizes they sold the bottom.