Korean market ($KOSPI) showing classic distribution pattern:
Only corporate buybacks keeping things afloat. Everyone else is heading for the exits.
Foreign money bleeding out all year—mostly dumping Samsung and SK Hynix. Classic tech rotation pain.
The real story is in the plumbing:
• Leveraged ETF assets collapsed back to March Iran-war lows
• Trading volume in levered products died after July regulations kicked in
• Margin debt sitting below June highs, but as % of market cap still at ~0.6%
That last point matters: debt levels look "reasonable" only because market caps are still elevated. Remove the buyback bid and you're left with a market nobody wants to own.
When the only buyer is the company itself, that's not strength—it's life support.
Only corporate buybacks keeping things afloat. Everyone else is heading for the exits.
Foreign money bleeding out all year—mostly dumping Samsung and SK Hynix. Classic tech rotation pain.
The real story is in the plumbing:
• Leveraged ETF assets collapsed back to March Iran-war lows
• Trading volume in levered products died after July regulations kicked in
• Margin debt sitting below June highs, but as % of market cap still at ~0.6%
That last point matters: debt levels look "reasonable" only because market caps are still elevated. Remove the buyback bid and you're left with a market nobody wants to own.
When the only buyer is the company itself, that's not strength—it's life support.