Quantitative Researcher, MRM Research

Nico Rosti

Quantitative Researcher

MRM Research

Quantitative Research

Event-Driven

Korea Stock Exchange KOSPI 200 / Event-Driven

<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 INDEX</a> closed  up 8 weeks in a row and breached the Inner Fence resistance target at 349, the index is now very OVERBOUGHT. </li>
<li>The upcoming pullback could be an occasion to go LONG at better prices: based on pattern analysis there is a chance the correction may be a large one, albeit fast.</li>
<li>Support levels to buy are in the 346-336 price area.</li>
</ul>


The KOSPI 200 INDEX closed  up 8 weeks in a row and breached the Inner Fence resistance target at 349, the index is now very OVERBOUGHT. 
The upcoming pullback could be an occasion to go LONG at better prices: based on pattern analysis there is a chance the correction may be a large one, albeit fast.
Support levels to buy are in the 346-336 price area.


EQD | KOSPI 200 Shows a Bullish Pattern for the Upcoming Pullback

<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 INDEX</a> has been rising for 4 weeks, it's OVERBOUGHT and may soon perform a quick pullback, followed possibly by another rally.</li>
<li>The upcoming pullback is likely to be short-lived, in this insight we analyze where the pullback can reach, and where it should be possible to go LONG again.</li>
<li>The price area to watch is 330-326: if the index reaches there, the LONG trade odds will be good (assuming the uptrend will continue into the end of the year).</li>
</ul>


The KOSPI 200 INDEX has been rising for 4 weeks, it's OVERBOUGHT and may soon perform a quick pullback, followed possibly by another rally.
The upcoming pullback is likely to be short-lived, in this insight we analyze where the pullback can reach, and where it should be possible to go LONG again.
The price area to watch is 330-326: if the index reaches there, the LONG trade odds will be good (assuming the uptrend will continue into the end of the year).


EQD | KOSPI 200 Stalling: Where to Go LONG on the Pullback?

<ul>
<li>Banning short-selling for stocks will provide some propulsion to 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> but inevitably there will be pullbacks when strong resistance areas are reached.</li>
<li>The index is joining a wide global equities bounce, it is not recommended to go SHORT soon. There is a chance it may pullback briefly this week (buy the dip?)</li>
<li>Our models say the index can rise from 2 to 4 weeks, before reversing: resistance will be met at 320, 328 and (hard to reach) 349.</li>
</ul>


Banning short-selling for stocks will provide some propulsion to the KOSPI 200 INDEX but inevitably there will be pullbacks when strong resistance areas are reached.
The index is joining a wide global equities bounce, it is not recommended to go SHORT soon. There is a chance it may pullback briefly this week (buy the dip?)
Our models say the index can rise from 2 to 4 weeks, before reversing: resistance will be met at 320, 328 and (hard to reach) 349.


EQD | KOSPI 200 SHORT-SELLING BAN: Upward Push and Pullbacks

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>We should consider the complete prohibition of short selling for the next six months as practically finalized.</li>
<li>Following the individual stock short selling ban, both position hedging and short demand will inevitably shift to the futures market, consequently inducing unavoidable immediate backwardation.</li>
<li>We should design a setup that not only actively seizes sell arbitrage opportunities but also effectively capitalizes on the downward price pressure stemming from spot selling.</li>
</ul>


We should consider the complete prohibition of short selling for the next six months as practically finalized.
Following the individual stock short selling ban, both position hedging and short demand will inevitably shift to the futures market, consequently inducing unavoidable immediate backwardation.
We should design a setup that not only actively seizes sell arbitrage opportunities but also effectively capitalizes on the downward price pressure stemming from spot selling.


Trading Opportunities from Korea's Sudden Short Selling Ban & Resulting Futures Backwardation

<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 INDEX</a> closed down last week (CC=-1) and is going towards the Q2/median support at 314. The index is also OVERSOLD MONTHLY (CC=-3)</li>
<li>One possible scenario is to see the index downtrending into early/mid-November, find a bottom, and then begin a counter-rally from there.</li>
<li>The index could go down more this week, but a LONG trade could begin at 314 support, and if that does not hold, the next support area is at 306.</li>
</ul>


The KOSPI 200 INDEX closed down last week (CC=-1) and is going towards the Q2/median support at 314. The index is also OVERSOLD MONTHLY (CC=-3)
One possible scenario is to see the index downtrending into early/mid-November, find a bottom, and then begin a counter-rally from there.
The index could go down more this week, but a LONG trade could begin at 314 support, and if that does not hold, the next support area is at 306.


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 | KOSPI 200 Shows a Bullish Pattern for the Upcoming Pullback

The KOSPI 200 INDEX is overbought, after 8 consecutive weeks of gains. A potential pullback may present a buying opportunity at support levels...

Nico Rosti

EQD | KOSPI 200 Stalling: Where to Go LONG on the Pullback?

The KOSPI 200 INDEX is overbought and may experience a quick pullback, followed by another rally. If the index reaches the 330-326 price area, it...

Nico Rosti

EQD | KOSPI 200 SHORT-SELLING BAN: Upward Push and Pullbacks

Banning short-selling may boost the KOSPI 200 INDEX, but strong resistance levels will always trigger pullbacks. Overall rise expected for 2-4...

Nico Rosti

Trading Opportunities from Korea's Sudden Short Selling Ban & Resulting Futures Backwardation

This post examines potential trading prospects stemming from Korea's impromptu decision to completely ban short selling, leading to short-term...

Sanghyun Park

EQD | KOSPI 200 Falling, LONG Support

The KOSPI 200 closed down last week, heading towards Q2 support at 314. OVERSOLD MONTHLY, possible downtrend into November before a potential...

Nico Rosti

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

EQD | KOSPI 200 Shows a Bullish Pattern for the Upcoming Pullback

​The KOSPI 200 INDEX is overbought, after 8 consecutive weeks of gains. A potential pullback may present a buying opportunity at support levels...

Nico Rosti

EQD | KOSPI 200 Stalling: Where to Go LONG on the Pullback?

​The KOSPI 200 INDEX is overbought and may experience a quick pullback, followed by another rally. If the index reaches the 330-326 price area, it...

Nico Rosti

EQD | KOSPI 200 SHORT-SELLING BAN: Upward Push and Pullbacks

​Banning short-selling may boost the KOSPI 200 INDEX, but strong resistance levels will always trigger pullbacks. Overall rise expected for 2-4...

Nico Rosti

Trading Opportunities from Korea's Sudden Short Selling Ban & Resulting Futures Backwardation

This post examines potential trading prospects stemming from Korea's impromptu decision to completely ban short selling, leading to short-term...

Sanghyun Park

EQD | KOSPI 200 Falling, LONG Support

​The KOSPI 200 closed down last week, heading towards Q2 support at 314. OVERSOLD MONTHLY, possible downtrend into November before a potential...

Nico Rosti

The KOSPI 200 INDEX is overbought, after 8 consecutive weeks of gains. A potential pullback may present a buying opportunity at support levels...

The KOSPI 200 INDEX is overbought and may experience a quick pullback, followed by another rally. If the index reaches the 330-326 price area, it...

Banning short-selling may boost the KOSPI 200 INDEX, but strong resistance levels will always trigger pullbacks. Overall rise expected for 2-4...

The KOSPI 200 closed down last week, heading towards Q2 support at 314. OVERSOLD MONTHLY, possible downtrend into November before a potential...