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South Korean Retail Investors 'Top Out' US Stocks, Selling Over 1 Trillion Korean Won of Overseas Stocks This Week

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June 7 — According to Yonhap News Agency, South Korean retail investors offloaded over 1 trillion won in overseas stocks during the first week of June, extending a net selling streak that began in April. This figure far exceeds the $469 million worth of sales logged in April and is nearly on par with May’s full-month record of $940 million. Should the selling pressure persist through the end of the month, it will mark the first time South Korean retail investors have notched three consecutive months of net overseas stock sales since the April-July 2023 period. Notably, this sell-off unfolds against a backdrop where U.S. stocks have repeatedly hit new highs, stoking market expectations that retail funds may flow back into South Korea. Meanwhile, South Korea’s KOSPI index breached its all-time 8,000-point mark at the end of May, led by semiconductor shares. Local retail investors are locking in gains from their U.S. stock holdings at elevated levels and returning to the domestic market to rebalance their asset allocations.
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Analysis: The South Korean stock market is expected to see a "Sell-off before Buy-in" scenario on Monday, providing a good buying opportunity after leverage unwinding.

June 7 — Trader 3X Long Labubu stated he is bearish on the near-term outlook for South Korea’s stock market but is positioning to buy the dip once it hits bottom. He plans to use a "sell first, buy later" deleveraging trading strategy. The trader forecast a strong likelihood of a sharp decline in the South Korean KOSPI index on Monday, with the 7050 level as a key focal point. Unless NVIDIA CEO Jensen Huang delivers a clear positive catalyst before South Korea’s market opens, the KOSPI is on track for a severe, dramatic plunge. Currently, South Korea’s market is heavily leveraged, with retail investors often utilizing 5x leverage. Once panic takes hold, a 15-20% single-day drop is highly plausible, which could potentially trigger a circuit breaker. Looking at KOSPI futures and the U.S.-listed EWY (the South Korea ETF), the market has already priced in a large portion of the anticipated decline upfront. The trader also pointed out that the key buy signal after a plunge is a simultaneou

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「Stock Market Oracle」 Serenity Discusses Personal Investment Framework: Guessing What the Market Doesn't Know Yet, Piecing Together High-Conviction Theories

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