$KORU current price 18.77; in the past 24h it’s down 4.53%. It briefly hit a high of 20.09, then got pushed back to 18.29. Volume: 391M—this volume is quite interesting; it doesn’t look like retail is just running.
$KORU is a 3x leveraged ETF going long Korea, the amplifier corresponding to $EWY . Don’t treat it like a company. The news yesterday about Asia’s manufacturing PMI improving did provide some support for fundamentals, but a 3x leveraged instrument is a double-edged sword: when the underlying rises 1%, it rises 3%; when it falls, it falls the same way. There’s also the daily rebalance decay cost—holding it for more than a couple of days is basically paying the market maker.
Key levels: 18.29 is today’s low and also short-term support; if it breaks down further, look at 17.5. Overhead, there’s trapped-seller pressure in the 19.8–20.09 area. My inclination is to try a small long position in the 18.3–18.5 range, with a stop-loss at 18.1. The initial target is 19.5. Keep position size under 5% of total capital. This is a short-term trading tool, not a “store in a box” long-term holding.
If $EWY rebounds tonight, $KORU will likely rebound as well—but remember, the leveraged P&L isn’t repaid linearly…
$KORU is a 3x leveraged ETF going long Korea, the amplifier corresponding to $EWY . Don’t treat it like a company. The news yesterday about Asia’s manufacturing PMI improving did provide some support for fundamentals, but a 3x leveraged instrument is a double-edged sword: when the underlying rises 1%, it rises 3%; when it falls, it falls the same way. There’s also the daily rebalance decay cost—holding it for more than a couple of days is basically paying the market maker.
Key levels: 18.29 is today’s low and also short-term support; if it breaks down further, look at 17.5. Overhead, there’s trapped-seller pressure in the 19.8–20.09 area. My inclination is to try a small long position in the 18.3–18.5 range, with a stop-loss at 18.1. The initial target is 19.5. Keep position size under 5% of total capital. This is a short-term trading tool, not a “store in a box” long-term holding.
If $EWY rebounds tonight, $KORU will likely rebound as well—but remember, the leveraged P&L isn’t repaid linearly…
