'Trading Extensions' would not be discounted where the 5800 serves as a good psychological support whenever the 6000 level would be penetrated. Will be closely monitoring a time frame as to when this would probably occur if nothing would change the current direction of the PH economy and its repercussion from the political agenda.
Valuations in PH stocks has deteriorated much more with the #PHP losing value as the exchange rate to the #USD is at its highest levels which briefly marked @50.00. Major companies in the property and financial sectors has been taking the lead in repurchasing beaten down stocks that provides a relief rebound in price adjustment before the resumption was made today.
The market scenario has remained 'Uncertain' in spite the fact the today's global stocks has gained traction especially with the four (4) US major stock indices are making new highs as of this writing. With the #DOW hitting an initial trade well above the 19000 levels; #SP500 above 2200; NASDAQ @5380 RUSSELL 2000 @1327 respectively.
A continuing trend direction shall prevail until such time the steam roller looses its own steam by the time book-squaring occurs in the near term before the end of the year liquidation and position adjustment.
Link: http://quotes.wsj.com/index/PH/XPHS/PSEI/advanced-chart
In addition, cost averaging in the FX market can be very costly and not advisable for new traders. The same goes for layering positions which would not work in a reinforced trend particularly in a declining market. However, at time may work for scalpers until such time the market scalps traders with sudden change of prices.
ReplyDeleteNOV 25, 2016 - Correlation that Matters Most: USD Strength versus JPY & PHP Weakness
ReplyDeletePrior to the Yen's weakness trading today, from its previous strength Called on last April where investors shift towards safe-haven strategies reflected the Yen's strength with the PHP weakness.
This was the pivotal price point wherein the #USDPHP broke away from its trendline resistance @47.00 that started in Aug 17, 2016 that run through a deep last Oct, 2016 and traded higher until today's price action @50.22 high; and the USDJPY marked @113.90 finding a probable resistance at this levels that may result to the week's pullback at the close of trading for the week.
http://www.megatrade101.com/index.php/component/content/article/72-latest-ll/922-market-summary-composition-4th-quarter-2016
The corrective move higher by the PSEI near the 6900 is merely a reflection and immediate market reaction of OIL prices recovery due to OPEC production cut. For now any price recovery would be temporary and no significant fundamental changes on market sentiments that would end the year in a negative tone for the PH stocks & the PHP local currency.
ReplyDeleteExpect a continuing 'Divergent Trend' not only in price difference but the inclusive direction of higher prices of commodities that would further create inflationary pressure by the middle of 2017.