BlockBeats News, June 7th — Trader 3X Long Labubu stated that he is bearish on the short-term trend of the South Korean stock market but is prepared to buy the dip at the bottom. He plans to adopt a "sell first, buy later" deleveraging trading strategy. The trader predicted a high probability of a significant drop in the South Korean KOSPI index on Monday, with a focus on the 7050 level. Unless NVIDIA CEO Jensen Huang provides a clear positive catalyst before the South Korean market opens, the KOSPI will "shit like no tomorrow" (plunge as if there is no tomorrow). Currently, the South Korean market is highly leveraged, with retail investors often using 5x leverage. Once panic sets in, it is easy to see a single-day 15-20% decline, potentially triggering a circuit breaker. From the perspective of KOSPI futures and the U.S.-listed EWY (South Korea ETF), the market has actually priced in a significant portion of the anticipated plunge in advance.

The trader also pointed out that the buying signal at the bottom after the plunge is when the U.S. and South Korean stocks bottom out simultaneously. The plan is to buy Nasdaq futures and South Korea 3x leverage ETF during the overnight session. In addition, one should not enter the market immediately when it reaches a key level (such as the 21-day moving average), but rather wait for the key candlestick to bottom out at a support level, wait for the next candlestick to bounce, and then confirm the entry, which is a more prudent approach.