Random PSE Musings: Index Failed to Move Above the 4,200 Level

For the fourth straight week, the Philippine Stock Exchange Index still remains unable to break the immediate resistance at 4,200 with conviction.

While the index attempted several times to take out this resistance, it was met with heavy selling, and to close out this week, the market fell by almost 2 percent. At this point, it appears that the index is headed towards the key 4,000 support level, which was briefly breached last November 30.

The outgoing week also produced several breakouts, none of which have successfully made a follow-through move, indicating that the market is still on a selling mode, getting out from ipits on any opportunities that may arise.

CLOUD, or IP Converge, also debuted this week catastrophically, not once trading higher than its IPO price. Which was probably dragged down by the under-performing mother company, IPVG.

This week has been a crazy one, now, let's see if next week's trading goes even wilder.

Pinoy Stock Trader

Random PSE Musings: PSEi Correction Goes Deeper, But No Worries… Yet

The Philippine Stock Exchange Index, or PSEi, has just fallen below its immediate support at 4,060, and also below the psychological 4,000 level, bringing the much awaited market correction deeper. From the all time high established at 4,413 last November 5, the PSEi has now lost more than 10% in value, and more than 400 points.

While a lot of observers, including yours truly, have been calling for a meaningful market correction, it seems that the correction we all have been looking for has finally arrived. While the sudden drop in the local market may alarm investors, especially the new ones that have just invested on the market highs, the PSEi still remains healthy in medium to long-term charts.

Looking at the weekly chart displayed above, the market run-up from September to early November, have caused the index to deviate further higher away from the uptrend line established way back in March 2009. Now, the recent bearish market sentiments have caused the PSEi to somewhat move closer to this trend line, initial support for the index is seen at 3,900, with the 3,800 level serving as the key support level.

However, if these two support levels get broken, then you guys can now worry hehe.

Random PSE Musings: PSEi Continues Moving South, Continues Correction - November 17, 2010

Following last Monday’s corrective bounce, the PSEi is back in the red on today’s session earlier in the morning. The PSEi closed 70 points lower, or -1.69%, as the Philippine stock market continues to correct from its recent all time highs established two weeks ago. Looking at the weekly chart from the early of 2009, the PSEi’s ascent has been too steep, and could not be sustained. As seen in the chart below, price needs to move around the 3,900 trend support, before making any upward move.

Random PSE Musings: PSEi Continues Long Overdue Correction, Technical Rally Very Ripe

Wow, for the 6^th-straight day, PSEi did another long black candle closing at 4,076.68, down by 67 points or -1.63%, and approaching the psychological resistance at 4,000. This makes the index very susceptible to a technical bounce. Early on during today’s trading, a lot of investors are panicking, selling across the board and at one point almost losing as much as 100 points.

Random PSE Musings: Correction Continues, Presenting Some Buying Opportunities – November 10, 2010

Much needed correction is now happening on the PSEi, as the 4,260 immediate support level is now breached. Next support is seen at the 4,140 level. On the 4th straight decline, a technical rebound could occur, so try to watch out for it and use it to your advantage. 

At this point, I think the PSEi may go into a consolidation period before deciding to continue establish new highs, or to go further into a corrective mode, and consolidate between the 3,900 and the 4,400 level. It remains to be seen on what’s gonna happen next, but stay tuned.

PSE Daily Recap: Another All-Time High, Time to Take Profits? - November 4, 2010

For the 3^rd-straight day, the main index PSEi registered a new high by rising 15.44 points or 0.35%, to close at 4,397.30. As the index continues to explore uncharted regions, one could ask: “Is it time to sell?”

PSE Daily Recap: PSEi Riding High, as Cebu Pacific Crashes Down - November 3, 2010

PSEi registered a new all-time high to close at 4,381.86, up by 40.12 points or 0.92%, while Cebu Pacific bucked the trend, falling even lower below its IPO price at 119.80, after going as low as 116.

I'm back...

... trading in the Philippine Stock Exchange!

After almost a two-year absence, from the local stock market, I am returning.

I know fate has given a new chance in this market, following my stint in the market in 2006-2009. I guess I still haven't finished my mission here, that's why I'm back here once again, to... to wreak havoc? No, of course not. I may have my own highs and lows with the PSE, but all these experiences only made me a better trader/investor today.

Of course, me returning is not all about money. Though I need to work harder now, as me and my wife are now blessed with our little angel, I have returned to help others navigate our still fledgling investment market.

I now that we're on never-seen before levels for the PSEi, and this is the perfect time to invest, but know this, this is the very same feeling among investors and traders, before the market collapse of 2008. And ladies and gentlemen, it is my duty to help and guide you to make the most out of the market, and at the same, manage the risks.

I have much more in store for this blog, so stay tuned. But if you have any questions, please feel free to drop me a line.

Have a nice day.