When you mention the KOSPI, you are really talking two stocks that make up 80% of the index; Samsung and SK Hynix. Of course, these two are AI darlings so they could do no wrong; traders bot at any price since artificial intelligence is the future. Hyundai Motor and LG are other recognizable names in the KOSPI.
In only 3 days, South Korea crashes into a bear market the KOSPI crashing -20% and the South Korea EWY ETF crashes -19%. The Uber/UT driver in Seoul that put last week's entire paycheck into the stock market, that the guy on television said was supposed to be guaranteed riches, got so worked up at the money he was losing he drove off the road into a tree. Leverage always plays a role in these types of crashes. Over-leveraged traders that were not paying attention are now walking around wearing a barrel.
The EWY bounced after the crash but there is likely far more wood to chop. The KOSPI is so close to the 50-day MA at 4951 it is worthy of a touch as well as the lower band at 4763. The EWY chart shows how there remains so much money floating around in the world that the dip-buyers could not wait to jump back in. This euphoric and complacent spirit must be busted going forward.
South Korea will be trading in about an hour here on the East Coast on Wednesday evening. The KOSPI chart is updated EOD (end of day). There is a lot of soul-searching going on in Seoul tonight. Are you a Soul Man? Good evening all of you fine ladies and gentlemen.... it is show time...... fresh off the automobile tour........ from Calumet City, Illinois,....give them a big welcome..... the Blues Brothers!!
Everyone is hyped up on the AI garbage but you keep looking around and see buptkis. AI produces mindless videos for doom scrolling, can write a song or poem or draw a picture, and write reports and aggregate information taking low-wage jobs away from people. It is a large language model that promises to change the world. Believe it when you see it. Artificial intelligence has been around for over 3 years already. Where is the super-hyped AI magical world that the Silicon Valley kids in their fleece sweaters, born from wealthy families, promised? Where's the beef? This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.
Note Added 3/5/26: The KOSPI gains +10% as traders trip over each other to buy Samsung and SK Hynix with both fists. Didn't you hear? AI is the next great thing. After 4 years and billions of dollars that have gone poof, where are all these great new things? Higher electric bills, longer waits for customer service as real people are let go, and loss of programming jobs are created by AI but this is not good. Isn't new technology supposed to bring an improvement to daily life? The first question Keystone will ask you is if your report was written by AI. If so, he will throw it in the garbage. Why would anyone take the time to read something that the person handing it to you did not think it was that important for him/her to write it?
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