
KORU: Why Bearish South Korea Is The Play Into The Fall
Seeking Alpha
Published: Jul 26, 2026, 10:55 PM GMT+9
Sentiment Analysis
I have a sell rating on Direxion Daily MSCI South Korea Bull 3X ETF due to technical weakness and high volatility. KORU is closely tied to EWY, which is dominated by SK Hynix and Samsung, and faces bearish technical patterns and seasonally weak August–October trends. Despite EWY's low P/E and high EPS growth, cyclical risks in semiconductors and negative compounding in leveraged ETFs warrant caution. I will consider reversing to a long KORU position if EWY fills its April gap near $125, but only for short-term tactical trades.
The global stock market is about to enter a historically volatile period. In midterm years, August through early October has featured bouts of downward price action, particularly following weak stretches.
Source: Seeking Alpha
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