US-China Summit and Micron Earnings Expected to Drive Stock Market Rally

The US-China summit has been scheduled for September 24, which experts emphasize is a crucial factor not widely discussed by market professionals. The expert cited the KOSPI index's rise after the US-China summit in May of this year as a precedent, predicting that this summit will also have a positive impact on the domestic stock market.

The confirmation of the summit schedule is expected to resolve uncertainties and improve investor sentiment, thereby invigorating the market.

This is considered a bigger event than anti-cancer related issues, raising expectations for future IPOs of robot-related companies such as Tesla's Optimus robot and Boston Dynamics.

Citing the past example of related stocks like Dongbang surging on news of Coupang's listing, the expert urged interest in the entire robot sector.

Rather than just the fact of the buyback, a fundamental question was posed: 'Why did they buy back shares?' emphasizing that the background of the share buyback includes an increase in the company's free cash flow and strong earnings.

The expert pointed out that investors who belatedly chase the stock on the day of the announcement may enter at a high point and be exposed to risk, asserting that buying at a low point before information is public is a wise investment strategy.

Given the dominant forecast of strong Micron earnings, it is crucial to proactively purchase shares of these companies before the earnings release.

Specifically, strong Micron earnings are highly likely to lead to a concurrent rise in both Samsung Electronics and SK Hynix, making proper timing for purchases before the announcement key. Investors need to consider this and take buying positions in advance, it was added.

The expert stated, "The first way to buy is, of course, Samsung Electronics. Why? Because its earnings are good," advising that investment in Samsung Electronics, which has high expectations for earnings improvement, should be prioritized. This analysis suggests that Micron's earnings announcement will be an important investment signal for leading domestic semiconductor stocks.

It was explained that because Micron's headquarters are in the US, market reaction tends to be slightly faster than in the Korean market.

Therefore, closely studying Micron's earnings announcements and stock movements plays a crucial role in predicting the trends of SK Hynix and the overall semiconductor market in Korea, it was emphasized.

It was advised that buying SK Hynix shares on the day of a share buyback announcement should be carefully considered, as the stock price may spike temporarily due to news reaction. Especially if the 20-day moving average is trending downward, there is a possibility of the stock price falling in the afternoon, so buying at the day's high should be avoided, it was warned.

The importance of a key trading strategy—securing a low point before positive news like a share buyback is announced through technical analysis—was emphasized, and investors were urged to approach cautiously.

It was emphasized that stocks with an excessively high disparity from their moving average carry significant buying risk and should be avoided, and holdings should be considered for sale. Citing the case of NHN, it was asserted that profit-taking is necessary when disparity is overheated.

The expert advised that stocks with high disparity should be excluded from consideration, urging investors to remain rational and not get swept away by an overheated market atmosphere.

It was stated that on June 26, when the KOSPI index was at 9,000 points, strong recommendations were made for cash preservation and inverse buying. At that time, Samsung Electronics stock was around 360,000 won, SK Hynix at 2,630,000 won, and Samsung Electro-Mechanics at 2,000,000 won.

Subsequently, a 24% return was achieved by purchasing a Samsung Electronics leveraged product on July 30, with a high return of 53% for a single-stock leverage. Furthermore, successful investment was led by accurate market prediction and proactive response, including recording a daily limit profit from short-term trading of SK Hynix's main shares.

It was analyzed that Samsung Electronics and SK Hynix will particularly lead this surge in the domestic stock market during this period.

The expert emphasized that the movement of these two leading stocks is essential for the domestic stock market to rise, advising investors to pay attention to these stocks.

This US-China summit is analyzed to be an important opportunity to alleviate geopolitical uncertainties and improve investor sentiment. Therefore, a positive trend is expected across the market until September 24, it was added.

The rise of these leading stocks could push the KOSPI index near or above 8,000 points, it was predicted.

If the KOSPI index reaches 9,000 points, most stocks will rise concurrently, thus emphasizing the need for a strategic investment focused on leading stocks.

ESS sales, which were 2.5 trillion won last year, are projected to reach 10 trillion won this year, 14 trillion won next year, and exceed 20 trillion won by 2028.

This represents a substantial portion, accounting for 33% of total sales, and the expanding energy storage system market driven by increased demand for AI data centers is expected to propel LG Energy Solution's earnings improvement, it was forecasted.

It was also recommended to replace pharmaceutical and biotech stocks with earnings-based stocks, rather than sticking to them.

It was announced that an event for expert subscription is running until next Monday for 100 people only, emphasizing a leverage-focused investment strategy to navigate the market.

The expert stated that when recommending stocks, they rarely recommend pharmaceutical and biotech stocks that are not backed by earnings. Pharmaceutical and biotech stocks without earnings are excluded from investment targets, emphasizing the principle of only investing in companies with solid earnings.

Investment is approached from two perspectives: short-term (5-10 days) and medium-term (1 month or more), and criteria for stock selection suitable for each investment period were presented.

Based on technical analysis, it was assessed that the stock had bottomed out and therefore had upside potential, leading to a buy recommendation.