Claire

🌐 AI | Crypto | Markets & the future of finance
✨ Ideas before they become consensus
📊 Quant trading & market making

[Claire @clairechen07]

https://t.co/wCs6Y7hfzG

[Claire @clairechen07]

@arikuschnir Is that Marc Andreessen 😂

[Lloyd Blankfein @lloydblankfein]

It’s not just that the building of data centers benefits US workers with jobs. It’s the output—A.I., embedded in industrial processes, that will increase US worker productivity and competitiveness. Or we can rely on tariffs, which just make imports and our lives more expensive.

[Morgan Stanley Derivatives @MgnStnlyDerivs]

Thursday, November 5th, was a day of extremes:

•US long/short Hedge Fund net leverage declined by 5% day over day, the 5th largest single-day decline since 2010. Net leverage is now in the bottom decile since 2010.^
•Long/short fund active gross flow since June has amounted to a -10.7% reduction relative to their gross market value at the end of June, the most in at least 10 years.^
•Hedge Funds are now underweight AI stocks* relative to market cap weights, but AI is still a very large percent of absolute exposures at 32%.^
•Levered ETFs had the largest amount to sell on data going back to 2007, bringing $57bn of US equity supply.
•Retail selling of US equities in the first 90 minutes, based on MS QDS estimates using public data, was the second largest going back to 2016.
•Equities are now starting to trade in a more correlated fashion, often signaling that risk reduction is broadening out.

^Sourced from MS Prime Brokerage.
*AI stocks defined as the constituents of the MSXXAI Index, made up of AI tech beneficiaries, AI power names, and key hyperscalers

[Claire @clairechen07]

🚨👀 Watch for another leg of dip into 4pm EST equities market close as leveraged ETFs rebalance.

Good time to absorb the supply then.

[Claire @clairechen07]

Would CTA trend following snowball the downfall?

High vol prompts CTAs to reduce exposure. While cutting longs adds to the selling, the shorts covering dampens further snowball.

Citadel's report shows CTAs net short going into 5 Nov selloff. They could have taken profit.

The key question now is whether CTA's bearish conviction outpace the increase in realised volatility, which drives the net impact.

[zerohedge @zerohedge]

Meanwhile private equity marks
yesterday: 100
today: 100

[Claire @clairechen07]

Zooming out, market is up 6 months post mid-term.

[sourcery @sourceryy]

Why it makes sense to eventually put all compute in space:

“Data centers are all an energy problem.”

“In space, for each solar panel, you get 5x more power than on the ground because you can put them in a sun synchronous orbit that is always looking at the sun.”

“No interruption from clouds, no interruption from day and night. You don't need batteries, you don't need gas.”

“5x more power straight to the chips, and then you just have to add radiators to cool those chips into the darkness of space.”

“It is just going to be cheaper.”

“It's also going to be better for communities that don't want these data centers in their backyard because of rising energy costs, water usage & other challenges.”

“It's just going to be smarter to put that infrastructure in orbit eventually.”

“Eventually we’ll put power in space & beam that down, & other things, but the first piece, by far easiest, is compute.”

— Planet CEO Will Marshall (@Will4Planet)

[Claire @clairechen07]

Day T shorts liquidated $310m.
Day T+1 longs liquidated $249m.

It changes faster than British weather.

[Claire @clairechen07]

OpenAI rebranded data centers to compute campuses. That’s clever.

https://t.co/pPI8RhAIC4

[Andrew Curran @AndrewCurran_]

OpenAI kicked off its big charm offensive this morning after data center moratoriums went 43-1 during the midterms, and many candidates rode a wave of public opposition to the industry to huge victories.

Data centers have been rebranded as Compute Campuses. OpenAI has also released a National Community Compact and a Compute Campus Policy Blueprint.

OpenAI’s National Community Compact: Building With Communities, Not Just In Them:
https://t.co/ou7DVNl0p7

AI Infrastructure That Works for America: Our Compute Campus Policy Blueprint:
https://t.co/sQASaoifkL

The most significant change is probably no more NDAs, from page 7:

[Michael Saylor @saylor]

Florida elected a Republican governor who backed a U.S. Bitcoin reserve. Texas elected a Democratic senator who voted to create one for his state. The case for holding Bitcoin crosses party lines.

[Claire @clairechen07]

@saylor Thats exciting!

[Xi Yin @XiYin137]

Out of all the responses I have seen in the recent days, this is one message I fully agree with and endorse.

[Claire @clairechen07]

@_catwu @ajambrosino Awesome 🫶

[Claire @clairechen07]

78 House Democrats voted YES for the CLARITY Act.

And Democrats have a clear reason to wait until they control Congress in January 2027.

We could be looking at a crypto bill with buffed-up investor protections, proof of reserves and best execution rules.

[Eleanor Terrett @EleanorTerrett]

🚨SCOOP: House Democrats are discussing plans to expand the Crypto Investor and Consumer Bill of Rights, @RepMaxineWaters’ amendment to the Clarity Act in 2025, into a broader crypto “market structure” bill next Congress.

The proposal would fold in Democratic Clarity Act provisions originally offered by Waters in the House (which were not adopted), as well as provisions Senate Democrats were able to agree to with Republicans before the September cloture vote, according to three industry sources who have spoken with Democratic staffers.

Some of the proposals under discussion are said to include giving the @SECGov more of a role in supervising the crypto markets, and a more limited role for the @CFTC. Additionally, it’s likely that further ethics provisions will be offered to restrict the crypto activities of President Trump and other federal officials.

Republicans are calling this a “messaging bill.”

[Peter Smith @OneMorePeter]

(1/3) There’ll be plenty of predictions about the new Congress after last night’s midterm election, but here’s what we know for sure: @standwithcrypto reports that Congress is pro-crypto by more than 2:1 in races called so far. That reinforces what we've said for years – good crypto policy is bipartisan.

[Michael Saylor @saylor]

₿on appétit.

[Claire @clairechen07]

“Today, the default is trusting Claude's judgment to auto-approve.”

This truly touches me.

Claude's judgment is steadily earning our trust, the most valuable thing we give each other as humans.

The builders behind the scenes are doing all the heavy-lifting so that from the UI everything looks easy and smooth to us.

[cat @_catwu]

Friday was my last day at Anthropic.

Two years ago, when Claude Code was a small internal tool, I asked it to build an RL env. I steered it for tens of hours but never manually wrote a line of code. It worked, I was hooked, and I joined the team.

When we first launched, most people approved every permission prompt by hand and mostly used Claude to answer questions and write tests. 

Today, the default is trusting Claude's judgment to auto-approve. Claude does large migrations and builds new products. 

Helping build Claude Code into an industry-defining product has been the journey of a lifetime. 

Thank you to the incredible team behind Claude Code, Cowork, and Tag. These products are the sum of thousands of great ideas from you. I'll miss working with you all.

Thank you to our users for embracing a new way of working. Your constant feedback shaped so much of what we shipped and your stories made the work so meaningful.

Excited to see what you all make next!