There will be volatility as buying and selling clash | Chesley Investment Advisory Executive Director Park Se-ik [Womaeshinbak / 26.07.23.Thu]

Summary

Park Se-ik analyzes the KOSPI's sharp decline and outlines a Fibonacci-based rebound target of 7300-8000. He also advises on semiconductor stocks, suggesting a rotation into laggard non-semiconductor names if semis fail to reclaim their highs within 2-3 months. Market volatility is expected as trapped sellers and short-term traders clash.

• KOSPI fell ~2900 points from 9300 to 6400 area.
• Even a weak market typically retraces 35% of such a drop, giving a target of 7300.
• If oil drops below $75 and 10-year UST yields ease to 4.2-4.3%, KOSPI could reach 7500-8000.
• Near-term volatility persists with no V-shaped recovery as buying and selling forces collide.
• Strong semiconductor earnings support a rebound attempt, but if prior highs are not reclaimed by September-October, investors should rotate into non-semiconductor laggards.
• He stresses the importance of having a consistent mentor or investment principle.