Search in ideas for "KOSPI"
Can Political Tremors Rewrite Global Financial Markets?In the intricate dance of global finance, South Korea's recent political upheaval serves as a compelling microcosm of how geopolitical dynamics can instantaneously transform economic landscapes. The Kospi Index's dramatic 2% plunge following President Yoon Suk-yeol's fleeting martial law declaration reveals a profound truth: financial markets are not merely numerical abstractions, but living, breathing ecosystems acutely sensitive to political breath.
Beyond the immediate market turbulence lies a deeper narrative of institutional resilience and adaptive governance. The swift parliamentary intervention, coupled with the Bank of Korea's strategic liquidity injections, demonstrates a remarkable capacity to pivot and stabilize in moments of potential systemic risk. This episode transcends South Korea's borders, offering global investors a masterclass in crisis management and the delicate art of maintaining economic equilibrium amid political uncertainty.
The broader implications are both provocative and instructive. As heavyweight corporations like Samsung Electronics and Hyundai Motors experienced significant share price fluctuations, the event underscores an increasingly interconnected global financial system where local political tremors can rapidly cascade into international market movements. For forward-thinking investors and policymakers, this moment represents more than a crisis—it's an invitation to reimagine risk, resilience, and the complex interdependencies that define our modern economic reality.
Nowhere to HideEmerging markets have made some terrific gains in the past month, but I would caution with the path ahead. Take a look at the past year's performance of the Hang Seng, KOSPI, IBOVESPA. I've included a chart of the Tadawul, the Saudi stock index, which is significantly weighted in EEM, the emerging market ETF. These are not healthy charts, and rallies provide opportunities for shorting in my opinion.
EEM's breakout from its downtrend will be tested as it compresses between the 50 & 150 EMA's. As of right now, it needs to close above $39.20 to invalidate a daily Head & Shoulders pattern.
Traditional|KOSPI|Long and shortLong and short KOSPI
Activation of the transaction only when the blue zone is fixed/broken.
The author recommends the use of anchoring fixed the blue zone, this variation is less risky.
If there is increased volatility in the market and the price is held for more than 2-3 minutes behind the activation zone after the breakdown, then the activation of the idea occurs at the prices behind the activation zone.
Working out the support and resistance levels of the consolidation zone.
* Possible closing of a trade before reaching the take/stop zone. The author can close the deal for subjective reasons, this does not completely cancel the idea and is not a call to the same action, you can continue working out the idea according to your data, but without the support of the author.
The "forecast" tool is used for more noticeable display of % (for the place of the usual % scale) of the price change, I do not put the date and time of the transaction, only %.
The breakdown of the upper blue zone - long.
Breakdown of the lower blue zone - short.
Working out the stop when the price returns to the level after activation + fixing in the red zone.
Blue zones - activation zones.
Green zone - take zone.
Red zone - stop zone.
Orange arrows indicate the direction of the take.
Red arrows indicate the direction of the stop.
Priority - The value of the priority parameter implies the author's subjective opinion about the more likely activation zone on this idea, this does not mean that this idea will be 80% activated by this parameter, the purpose of the parameter is to provide for the risk of the inverse of the zone parameter.
Example: "Priority Long: So the author inclines more in the direction of the activation zone open long trades, in this case, when reaching the activation zone in short you should be very careful, because this area may be highly likely to be punched about the breakdown/do not get to take/activate transaction from go to stop."
Please consider this parameter if you use my ideas.
SUM PNL: This parameter displays the total % of all closed ideas of the "new" format (according to the author) for this sector at the time of publication of the idea. The calculation is very "clumsy" just the sum of the profits of all the ideas, based on this indicator, you can more accurately assess the risks when working with my ideas of this sector. I present you the construction of the idea, you can use it yourself as you like based on your subjective view and risks, the calculation of the PNL indicator is carried out only on transactions that the author closed on TV in manual mode or by take.
P.S Please use RM (risk management) and MM (money management) if you decide to use my ideas, there will always be unprofitable ideas, this will definitely happen, the goal of the system is that there will be more profitable ideas at a distance.
Another look at KoreaTHeir COVID numbers are actually going up, and KOSPI futures are obviously overbought
Will KOSPI's historic rebound lead to another down fall?Here are the levels I believe KOSPI will converge to in the near future
Level 1 = around 2100
Level 2 = around 1960
Level 3 = around 1860
With the short ban in place until November 2020, it will be difficult to see the index fall below 1860, or even 1960.
However, we need to watch out for second wave of COVID-19.
Just a reminder that Korea is a nation with the fastest recovery from the COVID-19 pandemic, showing V shaped rebound.
With the quarantine protocols for COVID-19 well established, I would definitely enter into long position starting 1960.
Bottoms UPSometimes, when your life is too routine and the things you are exposed to are more or less the same, you become complacent. Go to work, come home, cook dinner, play games, sleep. Repeat and rinse.
In trading/investment, it can be the same as well. If you stick to your own local markets, the companies that are very familiar with (strong brand name, you are the customers for years, good review, etc), then you might missed out good opportunities.
Good opportunities such as markets in Thailand, Korea, Japan and Malaysia. For STI (SG market), it has only rebound from the bottom of 23 March around 22%. If you do some research, reading the news, etc you would know that these markets are faring better than STI.
They went up on average 43% from the bottom. Why wouldn't one want to make more money given the same time frame? Risks?
Unless you are venturing into the stocks in these countries which your broker might charge for a higher commission and custody fee, you are better off looking at the ETFs in these countries.
KLSE index (Malaysia) is EWM ETF
Japan index is Nikkei 225 index (futures) which most platforms will have or EWJ ETF
SET index (Thailand) is THD ETF
KOSPI index (Korea) is EWF ETF
Please do your own due diligence as the above is an example only. There are many ETFs that invest in these countries that offer different components mix and expenses. You want to look for one that offers the lowest .
I remain cautiously bullish on Asia markets now that the various countries are slowly reopening their economies and businesses are coming back as well. The consumers would still have to accept some inconvenience like putting on masks, keeping a social distance, no dine in at food outlets,etc. Other than that, being able to resume back to their pre-Covid 19 days is liberating for many who find staying at home stressful and suffocating.
Again, this chart is not exhaustive as comparing all available tradeable Asian countries would make the charts looks confusing. So , feel free to make your own index and/or ETFs comparison and decide if investing outside of your country is worthwhile, offering you a better ROI, etc.
South Korea (Kospi) Breaking DownI could add many charts right now detailing similar themes, but this one to me is extremely telling.. South Korea is sitting on the cusp of two 30+ year long trendlines it has not broken in quite some time. These are extremely important.
I wouldn't be fully surprised if we retest or don't break right away, but given the moves in global markets, it could just bust right through here and head down significantly. Watch for currency movements to be a big part of this. Semiconductor industry likely to get hit especially hard with this in mind.






















