Trader Predicts 'Kill and Buy' Strategy for KOSPI Amid High Leverage

Huo Xing Finance reports that on June 7, trader 3X Long Labubu expressed a bearish outlook on the short-term trajectory of the Korean stock market but is prepared to buy at the bottom, employing an overall "sell first, buy later" deleveraging strategy. The trader predicts that the KOSPI index is highly likely to plunge sharply on Monday, with particular focus on the 7,050 level. Unless NVIDIA CEO Jensen Huang provides a clear positive catalyst before Korean market open, KOSPI will "shit like no tomorrow." Currently, leverage in the Korean market is extremely high, with retail investors frequently using 5x leverage; panic selling could easily trigger daily declines of 15–20%, potentially even triggering circuit breakers. Analysis of KOSPI futures and EWY (the U.S.-listed Korea ETF) suggests that much of the anticipated decline has already been priced in. The trader also noted that the optimal signal to buy at the bottom occurs when both U.S. and Korean markets simultaneously reach their lows. The plan is to enter long positions in Nasdaq futures and the 3x leveraged Korea ETF during after-hours trading. Additionally, traders should avoid entering immediately upon reaching key levels such as the 21-day moving average; instead, wait for a decisive candlestick to bottom out at support, followed by a rebound on the next candlestick—this confirmation makes the entry more reliable.