$Micron Technology(MU)$ $SK hynix(SKHY)$ The KOSPI is making a slow climb, though it's still below recent highs. Forced selling from margin calls seems to be one factor holding back a faster rebound. This pressure is partly coming from leveraged ETFs, which have been falling several times more than their underlying investments. Meanwhile, major investment banks like Morgan Stanley and JPMorgan have been calling to buy semiconductors, saying the sell-off was overdone. However, any buying that has appeared has been quickly sold into. It feels like a lot of retail investors lost money after institutions crashed the party, and it might be wise to not rush back in.
Institutions may need to provide more capital to support the market. Morgan Stanley has a KOSPI target of 10,500, and JPMorgan recently raised theirs to 12,500. On the regulatory side, the government is continuing its crackdown on leveraged single-stock ETFs, banning new ones and their advertising.
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