Joanne Elinor
08-26

$SK hynix(SKHY)$ $Micron Technology(MU)$ SK Hynix up 3%. Samsung up 3%. Maybe the global selloff in semis and equipment has become more selective by geography.

Citi flags the short positions in Korea as one of the biggest catalysts for a rebound in the Kospi.

There are too many shorts, with a government that simply will not allow the Kospi to tank. Government officials continue to investigate leveraged single stock ETF providers and market making. Short betting has been capped and leverage unwinds have been mitigated by the government, not by market officials, which leaves no room for shorts. New leveraged single stock ETFs are banned, advertising is banned, and investment requirements have changed, including limiting any account to just 20% invested in leveraged funds. This massively changes bot trading accounts, as they now require 5x the capital to run, along with an almost unlimited liability to keep funding those margins at the end of each trading day. All short positions are now monitored 24/7 by officials. Can't breathe?

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