KORUB has fallen again today by nearly 20%. Its current price is $17.86. When I wrote about it yesterday, it was still a little above $20. In just two days, it dropped a lot.
This drop is even harsher than I expected. Let me lay out the background clearly. From the June peak, the Korean stock market is already down by nearly 30%. Today it even plunged—down by 50.72% at one point. Along the way, the “sidecar” circuit breaker mechanism was triggered. Chip leaders like Samsung and SK Hynix led the decline. Over in Japan, chip stocks were also in free fall. It’s a chain reaction driven by the Middle East geopolitical situation and a concentrated sell-off in tech stocks. KORUB is a 3x leveraged product, and with such violent market swings, the “decay” will be especially brutal.
What’s even more concerning is the regulatory front. Korean financial regulators are tightening the margin requirements for leveraged ETFs, effective July 31. This is a new rule aimed directly at these products, and it will directly and meaningfully reduce the operational room for leveraged capital.
For support, watch the $13–$15 range—these are the lows from the past few weeks. Resistance is around $22–$24. This week, even the rebound has only managed to reach that area at most.
My view is very clear: in the short term, I am firmly bearish. A market crash plus new regulatory rules taking effect immediately are a double hit for KORUB. At this level, don’t even think about bottom-picking—be cautious even with “watch and wait.” Before the July 31 rules take effect, liquidity and how these products can be traded may change significantly. Chasing longs would be like hard-catching a falling trend while taking policy risk—I don’t recommend it.
#KORUB $KORUB