Where is the market headed? | Chesley Investment Advisory Executive Director Park Se-ik

Summary

Park Se-ik analyzes the divergence between the Philadelphia Semiconductor Index and Nasdaq, recommending avoiding semiconductors until technical recovery. He sees the Korean market poised for a rebound as foreign selling subsides and put/call ratios hit extremes. Samsung Electronics and SK hynix could rally due to relative undervaluation after Changshin Memory's IPO.

• Philadelphia Semiconductor Index broke its 5-week moving average, prompting technical traders to exit
• Nasdaq's failure to make new highs after the SOX peak historically signals further downside for semiconductors
• Foreign selling in Korean equities is declining, while extreme put/call ratios suggest a bounce is likely
• KOSPI appears to be entering a rebound phase with limited downside risk
• Samsung Electronics and SK hynix may re-rate higher as they look cheap relative to Changshin Memory post-IPO
• Oil prices are expected to be contained by Trump to prevent a market and interest-rate shock
• 10-year Treasury yields and oil prices have eased, relieving some immediate pressure on markets