Chart based progressive global trading strategies, Chart Partners

Thomas Schroeder

Chart based progressive global trading strategies

Chart Partners

Chart Partners objective is to discover medium-term cycle turns and profit opportunities before they unfold, within structural trends while preserving capital with clear degrees of risk. We have real return ideas. 

Markets are dynamic and trading systems must reflect this. It is crucial to determine underlying correlations and lead-lag relationships within global markets and the impact on linked instruments. Our weekly Chartonics product gives you short-term trading strategies that can be applied within the medium and longer term macro trends that are mapped out in our strategy updates. 

Our methodology fuses global market variables and isolates drivers in trends. We specialize in FX, index trade in NY and Asia with a focus on Asian stocks. 

Technical Analysis

Korea Stock Exchange KOSPI 200 / Technical Analysis

<p>Korea's Kospi 200 has formed dual bull wedge patterns that set the stage for a rally. Korea has drifted lower since early January in a corrective manner (lacks sell momentum) and the USD/KRW is now at key resistance right when we turned to selling the DXY near 92.50 (tactically).</p><p>Bull wedge formations are of a high conviction. SEC also has a bull wedge due to break higher. Korea is a prime rotation candidate (after seeing the STI and KLSE pop higher).</p>

Korea's Kospi 200 has formed dual bull wedge patterns that set the stage for a rally. Korea has drifted lower since early January in a corrective manner (lacks sell momentum) and the USD/KRW is now at key resistance right when we turned to selling the DXY near 92.50 (tactically).Bull wedge formations are of a high conviction. SEC also has a bull wedge due to break higher. Korea is a prime rotation candidate (after seeing the STI and KLSE pop higher).

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Quantitative Analysis

<p>The China equity index futures market has come a long way since index futures started to trade on the <a href="https://www.smartkarma.com/entities/shanghai-shenzhen-csi-300-index" target="_blank" data-smartkarma-citation="entities:22906:1" rel="noopener">Shanghai Shenzhen CSI 300 Index (SHSZ300 INDEX)</a> in 2010. There have been booms and busts, volumes and open interest have soared and plummeted, rules have been relaxed and tightened and relaxed again, and the market continues to move forward.</p><p>Currently, index futures trade on the <a href="https://www.smartkarma.com/entities/shanghai-shenzhen-csi-300-index" target="_blank" data-smartkarma-citation="entities:22906:1" rel="noopener">Shanghai Shenzhen CSI 300 Index (SHSZ300 INDEX)</a>, the CSI500 Index, and the <a href="https://www.smartkarma.com/entities/shanghai-stock-exchange-sse-50-a-share-index" target="_blank" data-smartkarma-citation="entities:31073:1" rel="noopener">SSE50 Index (SSE50 INDEX)</a>. There are no published statistics on the share of volume and open interest held by institutional and non-institutional investors, so we take a stab at trying to figure out broadly what it could be.</p><p>Our analysis indicates that till mid 2015, most of the volume traded was driven by retail investors and they held a lions share of open interest too. Post the market crash and subsequent resurgence, retail investors share of volume traded and open interest has likely dropped substantially due to the market entry of more institutional investors, proprietary trading shops, and quant traders. Strategies employed by non-institutional investors mainly run counter to the retail flow and that has dampened the futures basis in the recent past.</p>

The China equity index futures market has come a long way since index futures started to trade on the Shanghai Shenzhen CSI 300 Index (SHSZ300 INDEX) in 2010. There have been booms and busts, volumes and open interest have soared and plummeted, rules have been relaxed and tightened and relaxed again, and the market continues to move forward.Currently, index futures trade on the Shanghai Shenzhen CSI 300 Index (SHSZ300 INDEX), the CSI500 Index, and the SSE50 Index (SSE50 INDEX). There are no published statistics on the share of volume and open interest held by institutional and non-institutional investors, so we take a stab at trying to figure out broadly what it could be.Our analysis indicates that till mid 2015, most of the volume traded was driven by retail investors and they held a lions share of open interest too. Post the market crash and subsequent resurgence, retail investors share of volume traded and open interest has likely dropped substantially due to the market entry of more institutional investors, proprietary trading shops, and quant traders. Strategies employed by non-institutional investors mainly run counter to the retail flow and that has dampened the futures basis in the recent past.

China Equity Index Futures: Who Holds the Open Interest?

Event-Driven

<p>The Korea Exchange (KRX) launched 5 indices last year following the New Deal initiative that the Government launched to digitalise social infrastructure and jumpstart the transition to green energy.</p><p>The KRX created 4 indices tracking the Secondary Battery, Biotech, Internet and Gaming sectors that are expected to benefit from the New Deal initiative plus an additional index (BBIG) that includes the top 3 stocks from each sector.</p><p>All indices have performed well since then. The KRX announced changes to the 5 indices late last week and the changes become effective post the close of trading on 25 February.</p><div><p><a href="https://www.smartkarma.com/entities/kakao-games-corp" target="_blank" data-smartkarma-citation="entities:26730:1" rel="noopener">Kakao Games Corp (293490 KS)</a> replaces <a href="https://www.smartkarma.com/entities/pearl-abyss-corp" target="_blank" data-smartkarma-citation="entities:24391:1" rel="noopener">Pearl Abyss (263750 KS)</a> in the BBIG Index.</p></div><div><p>In the Secondary Battery index, <a href="https://www.smartkarma.com/entities/soulbrain-co-ltd" target="_blank" data-smartkarma-citation="entities:16883:1" rel="noopener">Soulbrain (036830 KS)</a> and <a href="https://www.smartkarma.com/entities/l-f-co-ltd" target="_blank" data-smartkarma-citation="entities:14300:1" rel="noopener">L&amp;F Co Ltd (066970 KS)</a> replace <a href="https://www.smartkarma.com/entities/doosan-solus-co-ltd" target="_blank" data-smartkarma-citation="entities:28947:1" rel="noopener">Doosan Solus Co Ltd (336370 KS)</a> and <a href="https://www.smartkarma.com/entities/foosung-co-ltd" target="_blank" data-smartkarma-citation="entities:16811:1" rel="noopener">Foosung Co Ltd (093370 KS)</a>.</p></div><div><p>In the Biotech index, <a href="https://www.smartkarma.com/entities/shinpoong-pharmaceutical-co-ltd" target="_blank" data-smartkarma-citation="entities:7296:1" rel="noopener">Shinpoong Pharmaceutical (019170 KS)</a> and <a href="https://www.smartkarma.com/entities/green-cross-corp" target="_blank" data-smartkarma-citation="entities:2969:1" rel="noopener">Green Cross (006280 KS)</a> replace <a href="https://www.smartkarma.com/entities/alteogen-inc" target="_blank" data-smartkarma-citation="entities:15886:1" rel="noopener">Alteogen Inc (196170 KS)</a> and <a href="https://www.smartkarma.com/entities/hanmi-pharm-co-ltd" target="_blank" data-smartkarma-citation="entities:12476:1" rel="noopener">Hanmi Pharm (128940 KS)</a>.</p></div><div><p>In the Internet index, <a href="https://www.smartkarma.com/entities/ace-technologies-corp" target="_blank" data-smartkarma-citation="entities:7868:1" rel="noopener">Ace Technologies (088800 KS)</a> and <a href="https://www.smartkarma.com/entities/rsupport-co-ltd" target="_blank" data-smartkarma-citation="entities:14783:1" rel="noopener">Rsupport Co Ltd (131370 KS)</a> replace <a href="https://www.smartkarma.com/entities/kg-inicis-co-ltd" target="_blank" data-smartkarma-citation="entities:5234:1" rel="noopener">KG Inicis Co Ltd (035600 KS)</a> and <a href="https://www.smartkarma.com/entities/ubiquoss-inc" target="_blank" data-smartkarma-citation="entities:14341:1" rel="noopener">Ubiquoss Holding (078070 KS)</a>.</p></div><div><p>In the Gaming index, <a href="https://www.smartkarma.com/entities/kakao-games-corp" target="_blank" data-smartkarma-citation="entities:26730:1" rel="noopener">Kakao Games Corp (293490 KS)</a> and <a href="https://www.smartkarma.com/entities/neptune-company" target="_blank" data-smartkarma-citation="entities:28826:1" rel="noopener">Neptune Company (217270 KS)</a> replace <a href="https://www.smartkarma.com/entities/neowiz-games-corp" target="_blank" data-smartkarma-citation="entities:12425:1" rel="noopener">Neowiz Games (095660 KS)</a> and Golfzon (215000 KS).</p></div>

The Korea Exchange (KRX) launched 5 indices last year following the New Deal initiative that the Government launched to digitalise social infrastructure and jumpstart the transition to green energy.The KRX created 4 indices tracking the Secondary Battery, Biotech, Internet and Gaming sectors that are expected to benefit from the New Deal initiative plus an additional index (BBIG) that includes the top 3 stocks from each sector.All indices have performed well since then. The KRX announced changes to the 5 indices late last week and the changes become effective post the close of trading on 25 February.Kakao Games Corp (293490 KS) replaces Pearl Abyss (263750 KS) in the BBIG Index.In the Secondary Battery index, Soulbrain (036830 KS) and L&amp;F Co Ltd (066970 KS) replace Doosan Solus Co Ltd (336370 KS) and Foosung Co Ltd (093370 KS).In the Biotech index, Shinpoong Pharmaceutical (019170 KS) and Green Cross (006280 KS) replace Alteogen Inc (196170 KS) and Hanmi Pharm (128940 KS).In the Internet index, Ace Technologies (088800 KS) and Rsupport Co Ltd (131370 KS) replace KG Inicis Co Ltd (035600 KS) and Ubiquoss Holding (078070 KS).In the Gaming index, Kakao Games Corp (293490 KS) and Neptune Company (217270 KS) replace Neowiz Games (095660 KS) and Golfzon (215000 KS).

KRX BBIG K-NewDeal Index Rebalance: First Set of Changes Announced

<p>The Korea Exchange (KRX) will announce the results of the June 2021 review of the <a href="https://www.smartkarma.com/entities/kosdaq-150-index" target="_blank" data-smartkarma-citation="entities:31077:1" rel="noopener">KOSDAQ 150 Index (KOSDQ150 INDEX)</a>  in May with the changes becoming effective after the close of trading on 10 June.</p><p>We expect <a href="https://www.smartkarma.com/entities/tesna-inc" target="_blank" data-smartkarma-citation="entities:8792:1" rel="noopener">Tesna Inc (131970 KS)</a>, <a href="https://www.smartkarma.com/entities/simmtech-co-ltd" target="_blank" data-smartkarma-citation="entities:28871:1" rel="noopener">SIMMTECH Co Ltd (222800 KS)</a>, <a href="https://www.smartkarma.com/entities/tse-co-ltd" target="_blank" data-smartkarma-citation="entities:17821:1" rel="noopener">Tse Co Ltd (131290 KS)</a>, <a href="https://www.smartkarma.com/entities/unison-co-ltd-south-korea" target="_blank" data-smartkarma-citation="entities:18617:1" rel="noopener">Unison Co Ltd (018000 KS)</a>, <a href="https://www.smartkarma.com/entities/icure-pharm-inc" target="_blank" data-smartkarma-citation="entities:27142:1" rel="noopener">Icure Pharm Inc (175250 KS)</a>, <a href="https://www.smartkarma.com/entities/sam-kang-m-t-co-ltd" target="_blank" data-smartkarma-citation="entities:7263:1" rel="noopener">Sam Kang M&amp;T (100090 KS)</a>, Park Systems Corp (140860 KS), <a href="https://www.smartkarma.com/entities/hankook-atlasbx-co-ltd" target="_blank" data-smartkarma-citation="entities:15603:1" rel="noopener">Hankook AtlasBX Co.,Ltd. (023890 KS)</a>, Aju IB Investment (027360 KS), Vaxcell Bio (323990 KS), <a href="https://www.smartkarma.com/entities/binex-co-ltd" target="_blank" data-smartkarma-citation="entities:1949:1" rel="noopener">Binex Co Ltd (053030 KS)</a>, <a href="https://www.smartkarma.com/entities/fine-semitech-corp" target="_blank" data-smartkarma-citation="entities:15348:1" rel="noopener">Fine Semitech (036810 KS)</a> and <a href="https://www.smartkarma.com/entities/sungwoo-hitech-co-ltd" target="_blank" data-smartkarma-citation="entities:3963:1" rel="noopener">Sungwoo Hitech (015750 KS)</a> to be included in the index at the June review.</p><p>Deletion possibilities include <a href="https://www.smartkarma.com/entities/stcube" target="_blank" data-smartkarma-citation="entities:4872:1" rel="noopener">Stcube (052020 KS)</a>, <a href="https://www.smartkarma.com/entities/vt-gmp-co-ltd" target="_blank" data-smartkarma-citation="entities:8056:1" rel="noopener">Gmp Co Ltd (018290 KS)</a>, <a href="https://www.smartkarma.com/entities/iriver-ltd" target="_blank" data-smartkarma-citation="entities:13005:1" rel="noopener">Iriver Ltd (060570 KS)</a>, <a href="https://www.smartkarma.com/entities/hlscience-co-ltd" target="_blank" data-smartkarma-citation="entities:23629:1" rel="noopener">HLSCIENCE Co. (239610 KS)</a>, <a href="https://www.smartkarma.com/entities/advanced-process-systems-corporation" target="_blank" data-smartkarma-citation="entities:24087:1" rel="noopener">Advanced Process Systems (265520 KS)</a>, <a href="https://www.smartkarma.com/entities/saraminhr-co-ltd" target="_blank" data-smartkarma-citation="entities:8494:1" rel="noopener">SaraminHR (143240 KS)</a>, <a href="https://www.smartkarma.com/entities/easy-bio-inc" target="_blank" data-smartkarma-citation="entities:5778:1" rel="noopener">Easy Bio Inc (035810 KS)</a>, Golfzon (215000 KS), <a href="https://www.smartkarma.com/entities/daea-ti-co-ltd" target="_blank" data-smartkarma-citation="entities:1473:1" rel="noopener">Daea Ti Co Ltd (045390 KS)</a>, <a href="https://www.smartkarma.com/entities/spigen-korea-co-ltd" target="_blank" data-smartkarma-citation="entities:9852:1" rel="noopener">Spigen Korea (192440 KS)</a>, <a href="https://www.smartkarma.com/entities/lemon-co-ltd" target="_blank" data-smartkarma-citation="entities:28841:1" rel="noopener">Lemon (294140 KQ)</a>, <a href="https://www.smartkarma.com/entities/sangsangin-co-ltd" target="_blank" data-smartkarma-citation="entities:10494:1" rel="noopener">Sangsangin Co., Ltd. (038540 KS)</a> and <a href="https://www.smartkarma.com/entities/shinheung-sec" target="_blank" data-smartkarma-citation="entities:24426:1" rel="noopener">Shin Heung Energy &amp; Electronics Co (243840 KS)</a>.</p><p>The short sell ban in Korea has been extended to 2 May. Stocks that are constituents of the <a href="https://www.smartkarma.com/entities/korea-stock-exchange-kospi-200-index" target="_blank" data-smartkarma-citation="entities:26021:1" rel="noopener">Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX)</a> and <a href="https://www.smartkarma.com/entities/kosdaq-150-index" target="_blank" data-smartkarma-citation="entities:31077:1" rel="noopener">KOSDAQ 150 Index (KOSDQ150 INDEX)</a> can be short sold from 3 May. The commencement of short selling on these stocks prior to the announcement of the June review changes could result in the expected inclusions outperforming the expected exclusions and opening up other trading strategies.</p>

The Korea Exchange (KRX) will announce the results of the June 2021 review of the KOSDAQ 150 Index (KOSDQ150 INDEX)  in May with the changes becoming effective after the close of trading on 10 June.We expect Tesna Inc (131970 KS), SIMMTECH Co Ltd (222800 KS), Tse Co Ltd (131290 KS), Unison Co Ltd (018000 KS), Icure Pharm Inc (175250 KS), Sam Kang M&amp;T (100090 KS), Park Systems Corp (140860 KS), Hankook AtlasBX Co.,Ltd. (023890 KS), Aju IB Investment (027360 KS), Vaxcell Bio (323990 KS), Binex Co Ltd (053030 KS), Fine Semitech (036810 KS) and Sungwoo Hitech (015750 KS) to be included in the index at the June review.Deletion possibilities include Stcube (052020 KS), Gmp Co Ltd (018290 KS), Iriver Ltd (060570 KS), HLSCIENCE Co. (239610 KS), Advanced Process Systems (265520 KS), SaraminHR (143240 KS), Easy Bio Inc (035810 KS), Golfzon (215000 KS), Daea Ti Co Ltd (045390 KS), Spigen Korea (192440 KS), Lemon (294140 KQ), Sangsangin Co., Ltd. (038540 KS) and Shin Heung Energy &amp; Electronics Co (243840 KS).The short sell ban in Korea has been extended to 2 May. Stocks that are constituents of the Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX) and KOSDAQ 150 Index (KOSDQ150 INDEX) can be short sold from 3 May. The commencement of short selling on these stocks prior to the announcement of the June review changes could result in the expected inclusions outperforming the expected exclusions and opening up other trading strategies.

KOSDAQ150 Index Rebalance Preview: Expected Inclusions Continue to Move Higher

<p>We are initiating a Korea long to pair with our Singapore short established at 2,950 and outline fresh long support/trade levels for the Nikkei. Downside risk input stems from the SPX fade zone at the topside of the rising wedge (risk of a dip and rally into late February is our base case for the US).</p><p>Worth noting that Korea displays a compelling bull wedge while Singapore a lower degree micro bear flag formation. Singapore has been our favored short vehicle from the 3,000 top zone in January.</p>

We are initiating a Korea long to pair with our Singapore short established at 2,950 and outline fresh long support/trade levels for the Nikkei. Downside risk input stems from the SPX fade zone at the topside of the rising wedge (risk of a dip and rally into late February is our base case for the US).Worth noting that Korea displays a compelling bull wedge while Singapore a lower degree micro bear flag formation. Singapore has been our favored short vehicle from the 3,000 top zone in January.

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)

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Korea Stock Exchange KOSPI 200 (KOSPI2 INDEX EQUITY)

Korea Bull Rotation Bet

Korea's Kospi 200 has formed dual bull wedge patterns that set the stage for a rally. Korea has drifted lower in a corrective manner and the USD...

Thomas Schroeder

China Equity Index Futures: Who Holds the Open Interest?

We look at the change in the market landscape for the index futures in China and try to ascertain if retail investors still hold sway or if that...

Brian Freitas

KRX BBIG K-NewDeal Index Rebalance: First Set of Changes Announced

The KRX has announced changes to the KRX New Deal indices that will be effective after the close of trading on 25 February. Pearl Abyss is...

Brian Freitas

KOSDAQ150 Index Rebalance Preview: Expected Inclusions Continue to Move Higher

We see 13 potential inclusions and exclusions at the June review of the KOSDAQ150 Index. After giving up some gains vs the expected deletes and the...

Brian Freitas

Korea Long/Singapore Short

We are initiating a Korea long (bull break of wedge) to pair with our Singapore short established at 2,950 and outline fresh long support/trade...

Thomas Schroeder

Price Gauge

52-week Range

Market Cap (USDm)

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Dividend (Yield)