X platform trader Labubu Trader posted on July 2, clearing all memory and semiconductor equipment stock positions, and sold after QQQ broke below the $728.23 support level. Currently, only software stocks and the Magnificent Seven positions remain. The two key technical signals that triggered this large-scale liquidation are: the Korea Composite Stock Price Index (KOSPI) broke below the 50-day exponential moving average, and Micron broke below the 21-day exponential moving average.
KOSPI broke below 50d EMA, Micron broke below 21d EMA
(Source: Trading View)
According to Labubu Trader's post on platform X, there are two technical signals that triggered the sell button: first, the Korea Composite Stock Price Index (KOSPI) officially broke below the 50-day exponential moving average (50d EMA), which Labubu Trader regards as a leading indicator of the global memory chip cycle; second, Micron ($MU) broke below the 21-day exponential moving average (21d EMA).
Labubu Trader said: "I have cleared all my exposure to storage and semiconductor equipment/capital expenditure (Semicap) positions. I will reassess the market next week."
Labubu Trader's Position Trading Summary
According to Labubu Trader's post on platform X and the attached trading statement, the operations for each position are as follows:
Memory and Semiconductor Equipment Stocks (Storage & Semicap): Trigger conditions: KOSPI broke 50d EMA, Micron broke 21d EMA; Action: Full liquidation, re-enter next week based on market conditions
Micron ($MU) Insurance Mechanism: Set a Buy Stop at a specific upward price level; if Micron strongly recovers, it will automatically trigger a buyback to prevent missing out
Nasdaq 100 ETF (QQQ): QQQ broke below the $728.23 support, executed the sell operation on the 10th 5-minute candlestick after market open
Software Stocks and Magnificent Seven (Software & Mag7): Currently, only these two major positions are retained as defensive holdings
QQQ broke below $728.23 support, executed sell on the 10th 5-minute candlestick after market open
According to the trading statement provided by Labubu Trader, after QQQ broke below the $728.23 support, he chose to execute the sell operation on the 10th 5-minute candlestick after market open. This operational detail shows that he adopted precise entry timing management rather than selling immediately when the support level was broken. Labubu Trader currently only retains defensive software stocks in the tech sector and the Magnificent Seven positions; all other tech hardware exposure has been exited.
Post garners over 75,000 views in hours, discussion on KOSPI as a canary in the coal mine gains traction
According to reports, this post documenting real-time trading discipline accumulated over 75,000 views and more than two hundred likes within hours; the comment section saw a clear battle between bulls and bears. Some traders agreed with considering KOSPI as a 'canary in the coal mine' (a leading warning for the semiconductor cycle), supporting taking profits when the market is overheated; but some long-term bulls mocked his bearish move on the semiconductor sector. In addition, whether this tech stock rotation will spread to Asian stock markets and A-shares has become one of the focal points of community discussion.
Frequently Asked Questions
What are the technical signals that triggered Labubu Trader's liquidation?
According to his post on platform X, the two technical signals that triggered the liquidation are: KOSPI (Korea Composite Stock Price Index) broke below the 50-day exponential moving average (50d EMA), and Micron ($MU) broke below the 21-day exponential moving average (21d EMA). Labubu Trader views KOSPI as a leading indicator of the global memory chip cycle.
What stock positions does Labubu Trader currently hold?
According to his post on platform X, Labubu Trader currently only retains software stocks and the Magnificent Seven positions in his entire portfolio; memory stocks, semiconductor equipment stocks, and QQQ positions have all been sold.
What operation did Labubu Trader set up on Micron?
According to his post, Labubu Trader set a Buy Stop (a stop order to buy) on Micron ($MU). If Micron strongly recovers to a specific upward price level, it will automatically trigger a buyback to prevent missing out on a subsequent rebound.
