Prediction evidence

jo

Joe McCann

@joemccann

Why is the South Korean $KOSPI a leading indicator for the AI trade in the US? The KOSPI peaked on June 19th. US AI names peaked on June 22nd. The KOSPI now is attempting to form a bottom near the breakout level from April which was originally rejected in late February. Friday will put in a Tom Demark Sequential 13 buy candle on the daily timeframe. The onslaught of margin calls and liquidated accounts recently for South Korean traders tends to happen near local bottoms, but of course, this is not a guarantee. Moreover, the SK Hynix US IPO ($SKHY) has continued to hold above the IPO price for now with realized vol in the name just simply off the charts. It would be cliché to see their IPO as the "top" for the $KOSPI and by extension, the AI names. When the $KOSPI finally breaks this aggressively steep downtrend, watch for the recovery in US AI names, albeit on a lag. US AI names have been hammered off their highs so when the $KOSPI gets moving again I'd be paying attention to the obvious names: $MU $SNDK $ALAB $AAOI $AMD $ARM