The Dust Continues to Settle on the S. Korean Semiconductor Crash.
The Korean KOSPI index is down 10% in Asian trading hours. Down 35% since June 26th high. This what happens when the 2 biggest stocks are 50% of your index. pic.twitter.com/g5pB5GHjUo
— Edward Dowd (@DowdEdward) July 28, 2026
Ed Dowd makes a good point, and I think we're bound to see a similar unwind in the US - when the basket of AI driven stocks which accounts for 50% of the market gains over the past several years, unwinds. Hey, remember when NVIDIA used to lead the AI rally, then Semis, and a hand full of industrials names eg $CAT? Yeah... until FOMO turns to fear. Corning (reported this morning - stock -16% in pre-market? So much for that bullish industrials narrative.
Getting back to the AI crash at hand
When they decide to pull the plug - it's usually on a Monday - this time it was Tuesday
Last night's crash in S. Korea was yet another orchestrated rug pull (bid lowered below support)- possibly orchestrated by the same offshore (Chinese) traders I alerted to a week ago [Chinese Reddit Traders Team Up To Help Create The Perfect Storm].
Look closely at the embedded chart, to see where the bid was lowered- just below support. Textbook.
🚨 S. Korean $KOSPI is halted for 20 min. Waste of time. The damage has already been done. https://t.co/IYUUZGs1SA
— Veteran Market Timer (@3Xtraders) July 28, 2026
Thankfully I never got bullish on the KOSPI - I avoided catching a dreaded falling knife, but once the dust settles I'll be on board... because I trade whatever moves - not the $SPX.
What else is moving: Tesla, SpaceX, AI stocks, Tech (as usual). These 2 are only indicators for the hyperscaler space; I don't short individual stocks - maybe someday... but I'm sure my accountant would disapprove. However, if I had shorted Tesla, you can bet your ass I would've already covered that bet.
We're getting very close to my downside support.
The target - called out, just before Tesla reported
Tesla being drawn to my Tesla target - like a SpaceX booster recovery operation. $TSLA
— Veteran Market Timer (@3Xtraders) July 25, 2026
"support... 295 - 300" 👇 https://t.co/uLv9knNmmC
In Focus - The Rest of The Week:
- Wednesday's FOMC announcement should drive the $VIX back to normal levels. I'm not even sure what's holding it up - to tell you the truth. This must be one hell-of-a bear trap..? $MSFT, $META, $LRCX LAM, $QCOM QUALCOMM, $ARM
- Thursday more big tech earnings : $AAPL Apple, $AMZN, $MPWR (monolithic)
- Friday Energy $XOM, $CVX
After so many rug pulls, and the lack of excitement around the AI narrative, I'm only looking for another relief rally to sell - unless we see a sentiment shift - continue to sell the rips.
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