The terrifying crash... But a big counterattack begins. Don't miss the selling opportunity in the second half (Samsung Electronics) Team Leader Hwang Yuhyeon

Summary

The market suffered another sharp decline driven by retail panic and leveraged ETF selling. Foreign investors are quietly accumulating large-cap semiconductor stocks and futures, signaling a potential bottom. SK Hynix shows a double-bottom pattern, and a short-term bounce is expected, which should be used to reduce exposure. Leveraged ETFs are especially dangerous in this environment and should be avoided.

• KOSPI and KOSDAQ plunged again, with circuit breakers triggered, amid retail panic and leveraged ETF unwinding.
• Foreign investors bought large-cap Samsung Electronics and SK Hynix on the day and have been accumulating futures for weeks, a positive signal.
• SK Hynix has formed a double bottom and fallen without any meaningful bounce, historically unusual for a leading stock, favoring a near-term technical rebound.
• Upcoming earnings from Alphabet, Intel, SK Hynix, and other tech firms could act as a positive catalyst for Korean semiconductor stocks.
• The expected rebound should be used as a selling opportunity to trim positions, especially for leveraged holdings.
• Leveraged ETFs decay in volatile, trendless markets and are not suitable for extended holding in the current environment.
• Market confidence is very low, making the recovery process slow and requiring patience.