Momentum is driving all memory stocks, says S3 Partners' Bob Sloan

• Roundhill Memory ETF (DRAM) reached $10 billion faster than any ETF ever, with short interest nearing $1 billion, indicating a 'battle of wills'.
• Momentum from index investors is driving the rally in memory and semiconductor stocks, while active investors (hedge funds, mutual funds) are underweight in tech and have high short interest.
• Sloan warns that if the mechanical index flows stop, the market for these stocks 'will go down,' implying the current upward trend is unsustainable on fundamentals.

Bob Sloan discusses the 'memory trade' and semiconductor stocks, noting that the Roundhill Memory ETF (DRAM) and individual stocks like Micron and Qualcomm have seen unprecedented growth driven by index flows. He highlights a divergence where active investors are underweight in tech and hold significant short interest, while passive indexing creates a 'one-way bet' based on momentum rather than fundamental valuation, suggesting a precarious market position.