Quantitative Researcher, MRM Research

Nico Rosti

Quantitative Researcher

MRM Research

Quantitative Research

Event-Driven

Korea Stock Exchange KOSPI 200 / Event-Driven

<ul>
<li>In a <a href="https://www.smartkarma.com/insights/eqd-kospi-200-time-to-crash-or-time-to-bounce" target="_blank" rel="noopener">previous insight</a>, on Oct 26th, we theorized 2 possible scenarios: a rally or a mini-crash for the <a href="https://www.smartkarma.com/entities/korea-stock-exchange-kospi-200" target="_blank" data-smartkarma-citation="entities:26021:1" rel="noopener">KOSPI 200 INDEX</a>, from the following week.</li>
<li>It looks like we are more in the mini-crash scenario (see chart below), at the moment, but the index is already very oversold according to our WEEKLY model.</li>
<li>Keep reading to find out where to buy based on our MRM WEEKLY models for the KOSPI 200.</li>
</ul>


In a previous insight, on Oct 26th, we theorized 2 possible scenarios: a rally or a mini-crash for the KOSPI 200 INDEX, from the following week.
It looks like we are more in the mini-crash scenario (see chart below), at the moment, but the index is already very oversold according to our WEEKLY model.
Keep reading to find out where to buy based on our MRM WEEKLY models for the KOSPI 200.


EQD | The "Landing Area" For The KOSPI 200 Is In Sight

<ul>
<li>While the short-selling ban for the <a href="https://www.smartkarma.com/entities/korea-stock-exchange-kospi-200" target="_blank" data-smartkarma-citation="entities:26021:1" rel="noopener">KOSPI 200 INDEX</a> will remain in place until the first months of 2025, that does not prevent the index from pulling back.</li>
<li>Pullbacks, in this context, are an opportunity to buy, in the hope the index will rise higher from its current position.</li>
<li>Our models right now are showing a short-term WEEKLY OVERBOUGHT scenario coming in the next 2 weeks. Keep reading for more details.</li>
</ul>


While the short-selling ban for the KOSPI 200 INDEX will remain in place until the first months of 2025, that does not prevent the index from pulling back.
Pullbacks, in this context, are an opportunity to buy, in the hope the index will rise higher from its current position.
Our models right now are showing a short-term WEEKLY OVERBOUGHT scenario coming in the next 2 weeks. Keep reading for more details.


<ul>
<li>The last 2 weeks have been painful for investors that were LONG the <a href="https://www.smartkarma.com/entities/korea-stock-exchange-kospi-200" target="_blank" data-smartkarma-citation="entities:26021:1" rel="noopener">KOSPI 200 INDEX</a>, and this week is not very promising either.</li>
<li>The index has advanced less than 3% since its last WEEKLY negative Close on September 6th.</li>
<li>The index is in its 3rd consecutive week up (to be confirmed this Friday at the Close) but the current pattern usually ends on the third week up and reverses.</li>
</ul>


The last 2 weeks have been painful for investors that were LONG the KOSPI 200 INDEX, and this week is not very promising either.
The index has advanced less than 3% since its last WEEKLY negative Close on September 6th.
The index is in its 3rd consecutive week up (to be confirmed this Friday at the Close) but the current pattern usually ends on the third week up and reverses.


EQD | A Very Weak KOSPI 200 Is Ready to Pull Back Again

<ul>
<li>The <a href="https://www.smartkarma.com/entities/korea-stock-exchange-kospi-200" target="_blank" data-smartkarma-citation="entities:26021:1" rel="noopener">KOSPI 200</a> has corrected for 3 weeks in a row, reaching a low at 340.08 last week. It is WEEKLY OVERSOLD, according to our models.</li>
<li>In a previous insight we theorized the index could go higher (but only for 1 week), however the rally never materialized. From there it went downhill, now it can bounce.</li>
<li>The support area between the last Close and 320 offers strong support, according to our WEEKLY pattern models.  </li>
</ul>


The KOSPI 200 has corrected for 3 weeks in a row, reaching a low at 340.08 last week. It is WEEKLY OVERSOLD, according to our models.
In a previous insight we theorized the index could go higher (but only for 1 week), however the rally never materialized. From there it went downhill, now it can bounce.
The support area between the last Close and 320 offers strong support, according to our WEEKLY pattern models.  


EQD | KOSPI 200 OVERSOLD, It Could Bounce This Week

Korea / Special Sits, Pairs, Index Rebalancing, Clepsydra Capital

Sanghyun Park

Korea / Special Sits, Pairs, Index Rebalancing

Clepsydra Capital

Investigate special situations, pairs, and index rebalancing trades in Korea.

<ul>
<li>According to market information confirmed so far, the resumption is set for July 1st, and short selling will be restricted to the constituents of KOSPI 200 and KOSDAQ 150.</li>
<li>The surge in trading volume likely stemmed from the return of long-short positions post-short-selling ban, leading to an overall market volume increase.</li>
<li>Another critical factor is the buying pressure on value-up stocks resuming in early July. We should aim at the price impacts of intersecting long-short flows and value-up stock purchases.</li>
</ul>


According to market information confirmed so far, the resumption is set for July 1st, and short selling will be restricted to the constituents of KOSPI 200 and KOSDAQ 150.
The surge in trading volume likely stemmed from the return of long-short positions post-short-selling ban, leading to an overall market volume increase.
Another critical factor is the buying pressure on value-up stocks resuming in early July. We should aim at the price impacts of intersecting long-short flows and value-up stock purchases.


July Short Selling Resumption in Korea: Local Market Info & Trading Considerations

South Korea

The KOSPI 200 Index is a capitalization-weighted index of 200 Korean stocks which make up 93% of the total market value of the Korea Stock Exchange. The index was developed with a base value of 100 as of January 3, 1990.

Korea Stock Exchange KOSPI 200 (KOSPI2 INDEX EQUITY)

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Korea Stock Exchange KOSPI 200 (KOSPI2 INDEX EQUITY)

EQD | The "Landing Area" For The KOSPI 200 Is In Sight

The KOSPI 200 Index may be in the middle of a mini-crash, but it is already quite oversold according to our MRM weekly models. Find out where to...

Nico Rosti

EQD | KOSPI 200 May Pullback Soon...

Pullbacks on the KOSPI 200 INDEX are currently a buy opportunity, given the short-selling ban still in place. We predict a short-term WEEKLY...

Nico Rosti

EQD | A Very Weak KOSPI 200 Is Ready to Pull Back Again

Investors in the KOSPI 200 INDEX have witnessed a modest rally in the nearly 3 weeks after the sell-off (the index has advanced < 2.5% during this...

Nico Rosti

EQD | KOSPI 200 OVERSOLD, It Could Bounce This Week

The KOSPI 200 INDEX has corrected for 3 weeks, reaching a low at 340.08. Our pattern models indicate that it is Weekly oversold, it could bounce...

Nico Rosti

July Short Selling Resumption in Korea: Local Market Info & Trading Considerations

This post provides information circulating in Korea's local market about the resumption of short selling in July and its potential trading...

Sanghyun Park

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

EQD | The "Landing Area" For The KOSPI 200 Is In Sight

The ​KOSPI 200 Index may be in the middle of a mini-crash, but it is already quite oversold according to our MRM weekly models. Find out where to...

Nico Rosti

EQD | KOSPI 200 May Pullback Soon...

Pullbacks on the KOSPI 200 INDEX are currently a buy opportunity, given the short-selling ban still in place. We predict a short-term WEEKLY...

Nico Rosti

EQD | A Very Weak KOSPI 200 Is Ready to Pull Back Again

​Investors in the KOSPI 200 INDEX have witnessed a modest rally in the nearly 3 weeks after the sell-off (the index has advanced < 2.5% during this...

Nico Rosti

EQD | KOSPI 200 OVERSOLD, It Could Bounce This Week

​The KOSPI 200 INDEX has corrected for 3 weeks, reaching a low at 340.08. Our pattern models indicate that it is Weekly oversold, it could bounce...

Nico Rosti

July Short Selling Resumption in Korea: Local Market Info & Trading Considerations

This post provides information circulating in Korea's local market about the resumption of short selling in July and its potential trading...

Sanghyun Park

The KOSPI 200 Index may be in the middle of a mini-crash, but it is already quite oversold according to our MRM weekly models. Find out where to...

Investors in the KOSPI 200 INDEX have witnessed a modest rally in the nearly 3 weeks after the sell-off (the index has advanced < 2.5% during this...

The KOSPI 200 INDEX has corrected for 3 weeks, reaching a low at 340.08. Our pattern models indicate that it is Weekly oversold, it could bounce...