Now it seems that India and South Korea are the clear outperformers. “The stock market in South Korea is very bullish because it broke out in a big way“, says InvestingHaven.
Nasdaq.com is clearly not supporting our bullish viewpoint. Their recent article suggests no bullish South Korea stock market going forward.
The South Korea stock market has finished higher now in five straight sessions, advancing almost 70 points or 3.5 percent along the way. Now at a fresh six-year high, the KOSPI rests just beneath the 2,210-point plateau although the market may run out of steam on Thursday.
The global forecast for the Asian markets is slightly soft, with many of the regional bourses oversold and investors looking for a reason to lock in gains. The European and U.S. markets were slightly lower and the Asian markets figure to follow suit.
Also CNBC is not very bullish on the South Korea stock market, as it recently wrote that “the actual Korean market is really being driven by Samsung today so I wouldn’t read too much into that in terms of the general sentiment,” based on comments from Crestone Wealth Management CIO David Sokulsky.
The chart conveys a different message. South Korea went through an extremely long consolidation period of 7 years. That is really unusual. The longer the consolidation, the stronger the trend that follows. South Korea broke out in April 2017, and is now confirming its breakout. This is huge news, however InvestingHaven is among the lonely voices who spotted this important breakout.
The point is clear: the South Korea stock market is bullish, and points to much higher prices in 2017 and 2018. The easiest way to play this market is through the EWY ETF.
The iShares MSCI South Korea Index Fund ETF (NYSE:EWY) was trading at $65.87 per share on Thursday afternoon, up $0.93 (+1.43%). Year-to-date, EWY has gained 23.77%, versus a 6.94% rise in the benchmark S&P 500 index during the same period.
This article is brought to you courtesy of Investing Haven.