Out of China, Into the Tools: Fifteen Lines in the Ledger

The five model books logged fifteen entries between Monday's open and Friday's close, and fourteen of them point the same way. Global Tech 50 sold its three China names and bought the chip-equipment complex. AI Build-Out sold its one European chipmaker and bought the same complex. The derivatives book sold three new puts, one of them struck at the money on a software name that had just fallen 9 percent. After the Saturday of one line, this was the Saturday of the rotation.

The China exit first, because it is the money that funded the rest. On Friday Global Tech 50 closed Alibaba, PDD and Prosus, the Tencent proxy, in full: 150.92 Alibaba shares carried at an average of 145.71 and sold around Friday's 113.24, 55 PDD shares carried at 133.98 and sold around 82.21, and 1,262.86 Prosus ADRs carried at 9.33 and sold around 8.65. Roughly 8,600 dollars of realised loss on 41,100 dollars of cost, about 21 percent, the bulk of it Alibaba and PDD. The three lines had been red for months and the book had been carrying them as its China exposure; on the week Korea and Taiwan led the world and the CSI 300 fell, that exposure moved.

Where it went: into the machines that make the chips rather than the chips themselves. ASM International went from 10 to 30 ADRs, Disco from 251 to 391, BESI from 75 to 100, ARM from 35 to 50, and SK hynix came in new at 100 ADRs, the book's first position in the memory maker that was already in the derivatives book as a short put. At Friday's closes those five lines are worth in the region of 50,000 dollars, against the 34,000 that came out of China, so the book put its small cash line to work as well. Every one of the five names is a Rubin Build-Out constituent, and Rubin's equal-weight index rose 2.5 percent on Friday alone.

AI Build-Out made the same trade in smaller type. It closed STMicroelectronics, 250.26 shares carried at 33.50 and sold around Friday's 52.24, a realised gain near 4,700 dollars, about 56 percent, on the book's only European chipmaker. The proceeds and some of the book's 148,000 dollars of cash went into Advantest, 75 to 95 ADRs, BESI, 60 to 80, and Tokyo Electron, 75.27 to 100.27. Test, packaging and lithography, the back end of the line, the part of the supply chain that the memory cycle pulls hardest.

The derivatives book wrote three lines, two on Monday and one on Friday. On Monday it sold five ASX Semiconductor January 2028 30 puts with the stock at 36.95, a strike 19 percent below, and it sold ten Galaxy Digital January 2028 17.50 puts with the stock at 24.60, a strike 29 percent below. That is Galaxy's third round trip through this book in 2026, and it came one trading day after the January 2027 puts were bought back at 1.42: the book took the gain on Friday, then sold the same strike a year further out on Monday, with the stock 6 percent higher. Galaxy closed the week at 26.33.

Friday's line is the one to write down. The book sold one Cloudflare June 2027 280 put with the stock at 278.92. Cloudflare had fallen from 305.11 on Monday to 278.92 on Friday, down 8.6 percent in the week the market sold software and bought chips, and the put is struck at the money. A put sold at the money is a different object from a put sold 30 percent below: it says the book is willing to own the shares at this price, and it collects the most premium the structure can pay for saying so. Hypergrowth already holds 100 Cloudflare shares at 8 percent of its book, up 61 percent on cost even after the week. The books do not agree about software; they agree about Cloudflare.

Hypergrowth and Global ETFs logged nothing. The share prices quoted in this note are Friday's closes; the executed fills sit in the log, line by line.

The four wikifolios that run alongside these books keep their own public ledgers: every transaction in Closelooknet, AI Cycle 2030, ETF Generation and The Compound is visible on wikifolio itself, trade by trade. How the vehicles work, and who the issuer is, lives on the Trade the Look page. Nothing here is a recommendation and none of it is advice: it is the log of what this diary's books actually did between last Friday's close and this one's. The full ledger, newest first, is on the signals page.