US markets are seeing pressure this morning, led by the chips sector. The smoking gun is found in Korea’s KOSPI index, which closed down about 4% overnight.
US markets are seeing pressure this morning, led by the chips sector. The smoking gun is found in Korea’s KOSPI index, which closed down about 4% overnight. Investors in Seoul did not support the latest data center IPO, Elice, which fell 30% in its trading debut. AI skepticism overseas has echoed stateside in Tuesday’s premarket trade.
Investment banks generally do not bring IPOs to market with the intention that they lose 30% on their first day. There may have been some procedural issues with the timing of the offering. The underwriters might have botched this one. Nevertheless, it’s a bad look for the tech space this morning, raising the spectre that even the experts are having a hard time nailing down a present value for AI’s future.
Oil has clearly resumed its march higher. WTI crude traded over $101 this morning. We’ve been highlighting the oil sector for months. At this point, though, the relatively easy trades have moved out of range. Generally, we focus on stocks up to about $120, preferably under $80. We were stretching to cover XOM at $150. At $180, the intraday moves pose too great a risk for our retail audience. COP, at $146, is still reachable, if just barely. We may have to shift our gaze to more specialized players like APA.
Moreover, there’s no hurry to engage this market. Keep a patient eye on our trading board as we bring you the setups in real time. It’s “Aigoo,” Korean for “oops,” in case you’re interested.
Kapnotes is unbiased, catalyst-driven research for active traders. We screen the market's biggest movers and hand you a focused list of trading opportunities, updated in real time throughout the day.