Markets have a funny way of making you feel like a genius one week and a complete novice the next. While AI and semiconductor-related stocks have been crashing hard over the last few months, the ripple effects have hit the iShares MSCI South Korea ETF (EWY) especially hard, with the index plummeting over 30% from its recent peak. Just last week, we witnessed a stomach-churning more than 10% crash in a mere 10 trading days
For the retail investors who chased the parabolic top near $190–$210, this is the point of maximum anxiety. However, the chart below shows that this "crash" has actually triggered a high-conviction BUY_T2 signal within a Correction regime.
Here is why I’m stepping in to for a speculative trade while others are selling.
The Data: Why BUY_T2 Matters
When the market enters a "Correction" regime, the BUY_T2 signal acts as a mean-reversion re-entry trigger. Essentially, the market has overextended to the downside as shown in the chart...