Korean Stock Market Where Common Sense No Longer Works, A Surge Can Come Anytime. "This Stock to Watch First" (Crash Market) - Team Leader Hwang Yuhyeon

Summary

In a crash market where fundamentals and technicals fail, Team Leader Hwang Yuhyeon argues a short-term bottom is near and a sudden surge can come anytime. He advises using any bounce in SK Hynix to reduce positions rather than buy aggressively, and points to newly launched KOSDAQ active ETFs packed with semiconductor equipment stocks as a watchlist for a future recovery. Semiconductors remain the only sector with momentum heading into earnings season, while defensives and other sectors are breaking down.

• Market is in broad risk-off mode with all sector mechanisms failing; a short-term bottom is likely.
• SK Hynix is extremely oversold and a technical bounce is probable, but overhead supply from trapped retail and credit selling means the bounce should be sold, not chased.
• Alphabet earnings and upcoming Korean semiconductor detailed results are potential near-term catalysts for a sentiment reversal.
• Semiconductors are the only sector showing fundamental momentum for the second-half earnings season.
• New KOSDAQ active ETFs (especially from DS Asset Management) are heavily invested in beaten-down semiconductor equipment names like TES, PSK, and VM, making them a practical watchlist for a market stabilization trade.
• Defense stocks fell sharply despite rising geopolitical tensions, confirming broad risk aversion rather than normal sector rotation.
• Investors should reduce leverage and focus on net asset value, not individual stock losses, to survive until a new market leader emerges.