pre mkt thoughts - 7 jun 26 All eyes on the Korean open tomorrow as traders rightfully assess if the carnage on friday stops there. First off - on Kospi closed at 8160 on KRX, the first circuit breaker will come in if KOSPI opens at 7507 or below, the next level is 6936 and the last level is 6528. Next, there is a ton of selling pressure on SK Hynix as well as the leverage within the korean stock market. This will be counterbalanced by probably government intervention because KOSPI going to 6.9k will wipe out 5x levered retail players - they will try to stem the bleed in some way. In essence, expect a ton of volatility as we see which side wins the battle for tomorrow. Also, there will be a reduction in risk limits and degrossing because of the sheer amount of volatility as funds need to keep their VaR under checks. With friday's price action, the risk weights are now higher and hence i would expect rebounds to be kept on a lid.(degentrading)