Hang On Even If You Must Hedge Until December: Short-Selling Supply and Demand Reveals a Different Decline from July

Summary

Aurora Investment Advisory CEO Lee Ji-hwan dissects the sudden 2pm KOSPI slide as foreign futures selling triggering program selling in a thin market. He argues the current decline is different from July because KOSPI borrow balances are falling, signaling short sellers are retreating. He advises medium/long-term investors to hold Samsung Electronics and SK Hynix into December with hedging as long as July lows hold, while monitoring short-selling signals in names like Alteogen and rotating toward Korean banks.

• The 2pm KOSPI drop was supply-driven rather than news-driven; foreign futures selling triggered program selling and the market recovered.
• KOSPI stock borrow balance is declining, unlike the July surge, suggesting reduced short-selling pressure.
• He expects a weak-early, strong-late September and views this decline as different from July.
• Samsung Electronics and SK Hynix can be held into December if July lows hold, with inverse ETFs used to hedge weakness.
• Alteogen shows repeated double-digit short-selling ratios, indicating clear downside positioning.
• He reduced AI-derivative power/cable exposure and is adding Korean bank stocks.
• Solidigm's IPO is seen as a sentiment issue, not a major fundamental negative for SK Hynix.