Thanks to semiconductors, the market closed higher, but the market breadth is too unbalanced.
The McClellan index is in the -70s, and new lows are almost 6~7 times more than new highs.
As supply and demand have all gone into semiconductors, the overall market imbalance has created an unstable situation.
Semiconductors rose, and power stocks, which were inevitably going to rise, fell today. In addition, there was the bad news of a revision to the LS order announcement.
Looking at the US day trading now, semiconductors are still strong, and the overnight futures are showing strength.
KOSPI is rising thanks to semiconductors, but KOSDAQ is still in a sideways trend.
Normally, related sectors rise together in a normal bull market. However, the fact that supply and demand are concentrated on one side means that if the peak is high, the valley will be deep...
With leverage coming in, the adjustment of Hanick, which was -8%~-10%, may see a 10~15% or even larger adjustment. Of course, if it rises, it could surge by 20% like Micron yesterday. In this volatile market, it remains to be seen how many investors can withstand... It is likely that a situation will arise where only a few make money and most lose money.
Passive funds (non-arbitrage trading) have lost almost 1 trillion won over the past 5 days, and the proportion of foreign short selling has also increased. The good news is that US Treasury prices have fallen slightly, and foreigners have bought about 40 billion won in the futures market.
For those who hold semiconductor stocks, just hold them without worrying.
For those who hold other stocks, it seems that they will have to keep their minds strong for a short period of time this week or for 2~3 weeks due to sideways movement or decline.
For the time being, airlines, defense, robots, power, and bio sectors are likely to be volatile.
Especially for power stocks, it is difficult to predict where they will go. Supply and demand are not expected to increase anytime soon. In the case of LS Electric, a large-cap stock, there are many foreign and institutional sell orders, so it seems unlikely to be easy in the near future. Hyosung may seem undervalued compared to its order amount, but considering only its current performance, it is receiving as much valuation as Miyang's power stocks. Unless the value of Miyang's power stocks rises quickly, the outlook for power stocks does not seem bright...
Until this week, enjoy the semiconductor special and think about what countermeasures to take next week and gather data.
