PSE stock pickers is now taking a breather, after nursing a long declining market since mid-year of 2016. The relief rally seen with the PSEI recovery from its psychological support at the 6500+/- level is above the 7000 handle again which would be retesting above 7150 in the next trading days / week.
Tracking the local PSEI near its support levels may well be a trading decision where 'Cost Averaging' nearest to these levels would be 'Cost Effective' only with fresh market positioning. However, the market did plunged below this mark in Dec'16 which registered the year still in negative territory.
With this said, trading the PSEI thru alternative markets that tracks its performance can best be made by accredited investors that would take 'cost average position' against their loss in portfolio value. This would make more sense knowing where and how to while anticipating a move by taking advantage of this relief recovery. These moves would surely not only improve price exit levels from previous mid-year trades but the overall hedge of preserving wealth and investment value between the PHP and the strength of the USD. Not to mention, the 'Open Transparency' of the market and higher liquidity levels plus the volumes measured in the alternative markets.
PSEI Comparative Chart
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| Asian Session As of Jan 05, 2017 The projected trend line support called last December 2016 when price touched the 6500 levels which was resting on the support. A price recovery was anticipated which held true to this date Jan 05, 2017 in the Asian session where it is trading currently above the 7100 marked as an initial daily resistance. |
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Weekly Formation EPHE
On the Tech Angle: The weekly and Daily comparative price move can be identified in the chart formation with the higher lows of both correlated instruments. Such spreads between the two can be used as an Effective Cost Averaging tracking and targeting the Philippine (PSEI) main companies directly. Compared with the Emerging markets index ETF, although they are in the same family of ETF with ishares MSCI with the exception of a bigger volume with the EEM index.
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PSEI registered a 7279 high versus a 7049 low well within one day's session. The short-run rally reignited by news that some FDI have returned pushing the index at its best week's level. Well and good for main street stock investors contrary to the continued weakness of the PHP and increasing cost of commodity prices.
ReplyDeleteBefore the news and established high for the first 3 days of trading; this has been anticipated and the price extension to its high at 7279 is a welcome treat as the reaction on the US based EPHE would be pricing a well bid price levels that would outperform the PSE local index. This is where arbitrary hedging in a global market can be more of an advantage for those who practice the spread and invest wisely.