San Miguel Party Resumes

On a lethargic market session earlier today, San Miguel-related stocks once again took center stage, as SMC, PCOR, and SMB all posted significant gains with 5.5%, 6.1%, and 2.8% respectively.

SMC finally resumed its bullish momentum, after dipping near its breakout point at 125.00, proving that conservative breakout traders, those that buys when price dips near the breakout point chronicled on this post, can also have fun and join the ride.

PCOR on the other hand, looks to have broken out from what appears to be a pennant formation, with a potential price target of 18.50, based on the pole established during the last part of November. PCOR also looks to finally overcome the 13.00 level, which has eluded its price action last December 1. Stops could be placed around the 11.00 levels, in the event that our expected price action failed to materialize.

Meanwhile, SMB continues to trade very volatile, but still managed to close at 29.50, possibly moving sympathetically with SMC and PCOR.

Tomorrow, lets find out if San Miguel can outdo its bullish party hosted during the latter part of November.

Pinoy Stock Trader

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 - Is the San Miguel Party Over?

For the first time in 10 trading sessions, SMB finally went red, closing at 25.00 pesos, or down by -7.6%. While this is not totally unexpected, the actual decline came to be a surprise, as SMB went as high as 31.90, before turning about face, and crashing down. With its very volatile move earlier today, at least SMB has established an immediate support level at 22.50, and could consolidate between this level and 31.90 for the time being.

Still, the next few sessions will be crucial, as we still have to know if the 22.50 support level can be held. If not, then expect another bloodbath for this issue, and can go as low as 18.00 as its next target.

While PCOR managed to hold on to its gains and close at 10.10, it still is a far cry from its day high at 11.80, also burning a lot of investors in the process. LIB even joined the party early on, but this also closed far from its daily trading high.

Now, rumors has it that SMC, the parent company, is planning to offer secondary shares to the investing public next year, offering SMC shares between 150-200, which could probably explain why SMC-related stocks are moving northwards simultaneously. Well, it is up to you if you want to join the San Miguel party, or just look away, thinking that the party is over. 

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.

Random PSE Musings: Welcome Corrections – November 8, 2010

The Philippine Stock Index, or PSEi, just finished its second-straight decline to close at 4295.62, down by 1.2%. This decline is largely due to the TEL’s 1.5% decline, after plunging by 8% on last Friday’s trading. Still, the market appears to be taking some corrective declines, following its record-setting ascent in last week’s action. This correction also validates my suggestion last November 4 to take profits.