Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Index Rebalance

<ul>
<li>KSD has confirmed that <a href="https://www.smartkarma.com/entities/sk-hynix-inc" target="_blank" data-smartkarma-citation="entities:16955:1" rel="noopener">SK Hynix</a> has capped ADS issuance at 2.5% of the total shares outstanding. This lines up with what we wrote a couple of weeks ago.</li>
<li>With no riskless conversion arb, the play now is the riskier arb of trading the ADS vs the local shares with no timing overlap between the lines.</li>
<li>Index inclusions and upweights are one way of catching spikes and dips in the premium with ample trading volume around the events.</li>
</ul>


KSD has confirmed that SK Hynix has capped ADS issuance at 2.5% of the total shares outstanding. This lines up with what we wrote a couple of weeks ago.
With no riskless conversion arb, the play now is the riskier arb of trading the ADS vs the local shares with no timing overlap between the lines.
Index inclusions and upweights are one way of catching spikes and dips in the premium with ample trading volume around the events.


SK Hynix (000660 KS; SKHY US): No Local to ADR Conversion; Premium Play Dynamix

Chart based progressive global trading strategies, Chart Partners

Thomas Schroeder

Chart based progressive global trading strategies

Chart Partners

Chart Partners objective is to discover medium-term cycle turns and profit opportunities before they unfold, within structural trends while preserving capital with clear degrees of risk. We have real return ideas. 

Markets are dynamic and trading systems must reflect this. It is crucial to determine underlying correlations and lead-lag relationships within global markets and the impact on linked instruments. Our weekly Chartonics product gives you short-term trading strategies that can be applied within the medium and longer term macro trends that are mapped out in our strategy updates. 

Our methodology fuses global market variables and isolates drivers in trends. We specialize in FX, index trade in NY and Asia with a focus on Asian stocks. 

Technical Analysis

<ul>
<li>Our recent insight on where to add to shorts outlined entry points in the ASX, Nikkei and Korea. Entry points are being met with updated charts.</li>
<li>Australia exhibits tough resistance near 7,200-50 to cap but we are fighting a stronger commodity cycle there.</li>
<li>Nikkei call to see a rejection at 27k to test 26,200 resolve. Korea displays a higher conviction break down from the rising wedge to short this uptick.</li>
</ul>


Our recent insight on where to add to shorts outlined entry points in the ASX, Nikkei and Korea. Entry points are being met with updated charts.
Australia exhibits tough resistance near 7,200-50 to cap but we are fighting a stronger commodity cycle there.
Nikkei call to see a rejection at 27k to test 26,200 resolve. Korea displays a higher conviction break down from the rising wedge to short this uptick.


<ul>
<li>Markets that have held up are now vulnerable in Asia. We expect selling to mount next week. Weakness today/tomorrow to see an uptick to short into for a bigger decline.</li>
<li>SPX big risk break below 4,250 follows previous major support breaks in NDX, RTY and more recently Europe. 4,250 is now resistance to contend with on a bounce.</li>
<li>Australia, Korea and H shares presents places to add to short exposure followed by Taiwan and India (below 16,500). We have been short NKY, HSI and STI.</li>
</ul>


Markets that have held up are now vulnerable in Asia. We expect selling to mount next week. Weakness today/tomorrow to see an uptick to short into for a bigger decline.
SPX big risk break below 4,250 follows previous major support breaks in NDX, RTY and more recently Europe. 4,250 is now resistance to contend with on a bounce.
Australia, Korea and H shares presents places to add to short exposure followed by Taiwan and India (below 16,500). We have been short NKY, HSI and STI.


Derivatives and Quantitative Strategist

Gaudenz Schneider

Equity Derivatives

<ul>
<li>KRX-Listed 2x daily leveraged ETFs on SK hynix have been hit by mean-reverting volatility, with the leverage index down sharply month-to-date.</li>
<li>
Assets under management have come under pressure in July, but large inflows have softened the impact of negative price performance.</li>
<li>
ETF inflows remain meaningful relative to underlying liquidity, but on sharp down days they can be more than offset by daily rebalancing sales.</li>
</ul>


KRX-Listed 2x daily leveraged ETFs on SK hynix have been hit by mean-reverting volatility, with the leverage index down sharply month-to-date.

Assets under management have come under pressure in July, but large inflows have softened the impact of negative price performance.

ETF inflows remain meaningful relative to underlying liquidity, but on sharp down days they can be more than offset by daily rebalancing sales.


SK Hynix (000660 KS): Investors Buy Leveraged ETFs Into Sharp Selloff

Kospi and SEC bear flags point lower with SEC the more compelling short. Korea conviction to buy near 380/75 ahead of a bigger short squeeze to clear the 400 barrier. Korea did meet our 400 PT for a fade back to the lows to re load.Kospi RSI bull divergence to mature on next downside attempt.SEC bear flag stands out (short).Compelling pair is long Korea and short India.

Kospi and SEC bear flags point lower with SEC the more compelling short. Korea conviction to buy near 380/75 ahead of a bigger short squeeze to clear the 400 barrier. Korea did meet our 400 PT for a fade back to the lows to re load.Kospi RSI bull divergence to mature on next downside attempt.SEC bear flag stands out (short).Compelling pair is long Korea and short India.

South Korea

The KOSPI 200 Index is a capitalization-weighted index of 200 Korean stocks which make up 93% of the total market value of the Korea Stock Exchange. The index was developed with a base value of 100 as of January 3, 1990.

Korea Stock Exchange KOSPI 200 (KOSPI2 INDEX EQUITY)

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Korea Stock Exchange KOSPI 200 (KOSPI2 INDEX EQUITY)

SK Hynix (000660 KS; SKHY US): No Local to ADR Conversion; Premium Play Dynamix

The KSD has confirmed a 2.5% limit for SK Hynix ADS. A higher limit will be managed over a number of years. In the short-term, premium should stay...

Brian Freitas

ASX and Korea Short Entries

Our recent insight on where to add to shorts outlined entry points in the ASX, Nikkei and Korea. Entry points are being met with updated charts.

Thomas Schroeder

Where to Add to Shorts in Asia

Markets that have held up are now vulnerable in Asia. We expect selling to mount next week. Weakness today/tomorrow to see an uptick to short into...

Thomas Schroeder

SK Hynix (000660 KS): Investors Buy Leveraged ETFs Into Sharp Selloff

SK hynix leveraged ETFs face July AUM pressure, but large inflows and rebalancing sales reveal a more nuanced demand and liquidity picture.

Gaudenz Schneider

SEC Bear Flag and Kospi Re Load Zone

Kospi and SEC bear flags point lower with SEC the more compelling short. Korea conviction to buy near 380/75 ahead of a bigger short squeeze to...

Thomas Schroeder

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)