Semiconductors Stumble, Power and Diagnostics Stocks Soar

Due to the recent decline in SK Hynix ADR, domestic large-cap semiconductor stocks have performed poorly.

Conversely, power infrastructure-related stocks showed strength as the contract issue between Google and Constellation Energy came to light, and diagnostics-related stocks, such as Shin Poong Pharmaceutical, also saw increased volatility following news of the death of a FAST researcher in Russia.

There are concerns that it might decline just before a new high, similar to previous cases like TF, but the shift in supply and demand to bottoming-out stocks like power infrastructure is a major market observation point.

There is also concern that the pattern of some stocks, such as TF, declining just before reaching a new high could recur. This suggests a potential shift in supply and demand from large-cap semiconductor stocks to bottoming-out sectors like power infrastructure.

A FAST researcher died in Russia. The United States demanded an investigation into a potential pathogen leak.

The U.S. demand for an investigation created market noise, causing diagnostics-related stocks to move. Claims of a Ukrainian drone attack have not been confirmed.

However, there is an expectation that Samsung Electronics' provisional earnings announcement could alleviate these concerns and restore investor sentiment for semiconductors.

If even Soojang stocks take a breather, the adjustment in large-cap semiconductor stocks could be leveraged as a buying opportunity from a long-term perspective.

In this situation, it is crucial to closely monitor exchange rate and earnings variables to grasp the market's direction.

While domestic security stocks have not shown significant movement yet, the trend in the software and security stock sectors in the U.S. stock market is favorable.

The generalization of security threats due to AI technology development and the increased need for cost reduction are expected to boost security demand, suggesting that domestic security stocks could emerge at any time.

Sam Chun Dang Pharm's new drug clinical trial results are affecting the overall biotech sector, and the pharmaceutical and biotech stocks face uncertainty regarding further increases after recovering short-term declines.

There is a concentration of supply and demand between new drug FDA-related stocks and disease-issue stocks, so caution is needed in investment, as purchasing at high points could lead to significant declines.

The movement of power infrastructure can lead to an increase in demand for Energy Storage Systems (ESS) related to data centers, driving supply and demand in the secondary battery sector.

The movements of major secondary battery stocks such as LNF and Lotte Energy Materials tend to precede these expectations, and it is necessary to closely watch the theme's expansibility by comparing market capitalization with Jusung Engineering.

As increased ESS demand from data centers is expected to drive secondary battery supply and demand, anticipation for an earnings turnaround next year is also acting as a driving force for stock price increases.

Investors should consider this synchronized pattern in the domestic market, which differs from the U.S.

This demonstrates a structural characteristic in the domestic market where transformer stocks are influenced by the overall investment sentiment of the semiconductor sector.

Memorizing these leading stocks by theme and responding to market rotation flows is suggested as an efficient investment strategy.

Given the accelerating pace of market theme rotation, it is crucial to identify key stocks and respond flexibly.

When cosmetics stocks surge, the upward trend tends to conclude within one or two days, making a short-term approach crucial.

As theme stock rotation occurs too quickly, there is a risk that leading stocks may not sustain long-term gains, so it is necessary to closely observe whether key stocks like power infrastructure attempt to break through their highs.

Power infrastructure-related stocks such as Gaon Cable, LS Electric, and Taihan Electric Wire are currently in a noteworthy position on their charts.

Particularly, for stocks like LS Electric, breaking through the short-term lower box range is judged to open up possibilities for further gains.

There are stocks that show a 'Won Ki Ok chart' pattern, where volatility narrows and it appears to gather energy before a surge in trading volume, warranting attention.

Stocks that surge due to securities firm reports should be excluded from long-term holdings. A trading strategy that does not exceed a maximum of two days is effective for short-term response.

Such stocks often move on short-term momentum, making swift profit-taking a crucial strategy.

It is important to approach these stocks from the perspective of leveraging short-term market trends rather than long-term value investing.

If leading stocks like Gaon Cable fail to break through their highs, a market-wide pullback occurs, making it an important indicator for gauging the day's sentiment.

If such leading stocks fail to break their highs, a market-wide pullback may occur, so the price movements of leading stocks must be closely monitored.

However, if foreign futures selling expands, it could link with institutional selling and potentially trigger a program sell-off, so it is necessary to continuously monitor foreign futures trends during trading hours.

After hitting the upper limit, there is a high possibility of adjustment as profit-taking volumes emerge, so from now on, a strategy of short-term profit realization and observation is effective.

It is emphasized that long-term holding can be risky due to the rapid rotation speed of theme stocks.

This is analyzed as market participants increasingly pursuing short-term gains, causing shipbuilding stocks, which require a long-term perspective due to their industry characteristics, to be sidelined in a market focused on day trading.