South Korea rolled out a plan to invest in AI and semiconductor projects. Samsung and SK Hynix are the companies doing the investing. The stocks dropped. Both of them.
This is what passes for logic in equity markets. Government says we're building the future. Companies commit capital to massive infrastructure projects that could define the next decade of tech dominance. Investors hear this and immediately sell. Makes perfect sense if you've suffered repeated head trauma.
The technical setup here is irrelevant because the technical setup is always irrelevant. But some guy with a YouTube channel and three monitors is absolutely convinced this is a double-top formation with bearish divergence on the RSI. He will tell his seventeen subscribers that Samsung is going to 40. He will be wrong. He will then explain why he was actually right but the market makers manipulated the price. He will continue to have seventeen subscribers.
The announcement itself contained words like mega-projects and sweeping, which are the kinds of adjectives governments use when they want to sound important. The projects probably involve building factories and research facilities, which is what semiconductor companies do when they have money and a government telling them where to spend it. None of this information helps you predict where the stock goes tomorrow.
Retail traders are now frantically Googling whether South Korea is bullish or bearish. They're checking if Samsung makes the good chips or the bad chips. They're drawing lines on charts that connect random price points from two months ago. They're doing everything except acknowledging that stock prices move because someone clicked a button and they will never know who or why.
The mega-projects will take years to complete and the stocks will do whatever they f*cking want in the meantime, completely unrelated to any announced plan.
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