What is Happening.

Wednesday July 8, 2026

Ignore everything you have read recently. Here is a chart of the KOPSI, the Korea Composite Stock Price Index which tracks the Korea Exchange ($KRX.)

What does that tell you?

Last night the KOPSI hit -5%. This is the second day in a row. Any traders playing the YoYo game got whacked in the face.

Ignore everything you have read on finance, economics, etc. If the market you are playing starts acting this erratic what would you do?

Would you increase your participation? Or would you hesitate? The KOPSI is innately more volatile than any US index for a couple of reasons. It’s more concentrated and Koreans just like spicier food that Americans.

But, what you are looking at in that chart is a market unravelling.

The only question that remains is if there will be any sort of sustained rotation. And that is a question I can’t answer. There is no comparable time period.

I can just tell you for the last few months there has been. Here is the rotation chart from March. And from this morning. You can see the trend is weakening for biotechs but that segment is still leading. I don’t have a version of this code to break out micro caps/small caps/etc. I should probably work on that.

-AJ