Two Consecutive Days of Circuit Breakers: KOSDAQ Devastated, Abnormal Stock Crash / Panic Selling with Exploding Volume, Fear Has Peaked
[#RealMarketConditions] Circuit breaker for two consecutive days.. KOSDAQ devastated, abnormal stock price crash / Panic selling with exploding trading volume, fear has reached its peak | Hwang Yu-hyeon Team Leader
Speakers
Hwang Yoo-hyun
— Private Banker Team Lead, NH Investment & Securities
Summary
PB Team Leader Hwang Yu-hyeon discusses the historic two-day circuit breaker on KOSDAQ triggered by panic selling in SK Hynix and leveraged ETF unwinding. He draws parallels to the October 2018 crash, expects a technical bounce in SK Hynix and KOSDAQ, strongly warns against leveraged ETFs, and advises watching for new thematic leadership in KOSDAQ once volatility subsides.
- KOSDAQ and SK Hynix suffered extreme panic selling with two consecutive circuit breakers.
- The sell-off was exacerbated by forced liquidation of leveraged and margin positions.
- Historical comparison to October 2018 suggests a high-probability short-term technical rebound.
- Leveraged ETFs on SK Hynix and Samsung are deemed destructive and should be avoided.
- Government policy response is seen as too late and ineffective.
- Once volatility settles, new KOSDAQ leadership themes (semiconductor parts, batteries, biotech, etc.) are expected to emerge.
- Investors are advised to survive the turmoil, avoid leverage, and prepare for sector rotation.
