$Direxion Daily MSCI South Korea Bull 3x Shares(KORU)$ After a pretty brutal crash, KORU has bounced 75% off the low of 11.65. A lot of that wipeout seemed to come from over-leveraged Korean retail traders getting blown up on margin calls. From where I stand, that's exactly why I scale into and out of leveraged products gradually. I never go all-in on a single ETF at once and I never touch margin. Some of those Korean traders just come across as a bunch of amateurs to me. LOL The moving averages still look weak, but RSI and MACD are starting to show some bullish recovery signs.
I've got three setups on my radar this week. $NEBIUS(NBIS)$ Burry's reported short took a hit as $NEBIUS(NBIS)$ got rejected at the 50MA, pushing it down toward the 0.5 Fib around $180. If it can hold support here and reclaim the 200MA, that's something I'll be watching closely. Earnings are on Wednesday. $Applied Optoelectronics(AAOI)$ Some wild post-earnings swings on Friday, but price ended up closing below the 50/100DMA. A higher low from here, or $118 holding as firm support, could signal Wave 3 is getting started rather than another corrective Wave B. $Rocket Lab USA, Inc.(RKLB)$ Keeping thi
I sold the $10 puts on $Tradr 2X Long SNDK Daily ETF(SNXX)$ expiring August 14 for $1.25. If it works out, that's a 14% ROI. I can live with that and sleep well.
$SpaceX(SPCX)$ It feels like the whole world is bearish on this right now, and that usually looks like a decent time to start building a position for the longer term. Everyone seems so sure it's going to tank in the near term, but market makers could easily wipe the bears out and make a fortune. Just saying.
$SK hynix(SKHY)$ SK Hynix is on track to post a pretty conservative yearly profit of $250 a share. That translates to $2,500 for the main stock in South Korea and $250 on NASDAQ at some point in the next 6 months. SKHY is the ADR in the US, which represents 10% of the main stock in Korea.
$SK hynix(SKHY)$ It seems to me most of the drop was just from margin cascades. From where I stand, that looks mostly cleared out now, so we're back to normal trading. I had my own margin calls during the dot-com era, so I've seen this play out before.
$Tesla Motors(TSLA)$ $SpaceX(SPCX)$ Bulls are having the last laugh, claiming Tesla and SpaceX can save that first penny on semiconductors by building a $100 billion "giant chip fab."
$SK hynix(SKHY)$ I don't think we'll see any meaningful stabilization until the leveraged bets calm down over there. When two companies make up more than 50% of the national index and retail is pouring into leveraged instruments, these moves become self-reinforcing. KOSPI has corrected 40% in a single month. That's extreme. There have been 7 circuit breakers since Jun 8 and 12 sessions with declines greater than 5%. With margin running at 500%, a 5% drop likely triggers a margin call, a 10% drop wipes out half, and a 20% move takes out the entire equity position. Offshore retail casinos don't even come close to this level of risk-taking.
$SK hynix(SKHY)$ SK Hynix has moved up from its recent lows, and there's some talk in Korean retail circles about a potential trend change. The stock moved between around 1.67 million won and 1.93 million won during the day. Some positive views point to the recent U.S. ADR listing and increased foreign buying, with a few looking at the 2.0 million won level next, citing a bullish candlestick pattern and higher trading volume. The launch of new 2x leveraged SK Hynix ETFs is also getting attention. On the other hand, there are cautious views noting the rebound is still below previous highs after a significant multi-week decline. This sentiment is based on unverified discussions from a Korean retail community app.
$SpaceX(SPCX)$ Just allocated 20% of my capital at $145.6, bringing my total holding to 25%. I was waiting for a pullback before adding more significantly. I had sold a similar amount not long ago when it was near $170.