There's more than meets the eye!
The PH stock market's profit taking activity as reported by most analyst reports in Bloomberg TV Philippines is an understatement. And this is contrary to the PSEI's market behavior where price action have been quite limited to and identified with a higher opening and drifting lower at the end of the day. There has been more down days with only a couple of up-ticks as a corrective move with the market's relative price action behavior that had market participants take action from their relatively real short-term position.
The PH stock market's profit taking activity as reported by most analyst reports in Bloomberg TV Philippines is an understatement. And this is contrary to the PSEI's market behavior where price action have been quite limited to and identified with a higher opening and drifting lower at the end of the day. There has been more down days with only a couple of up-ticks as a corrective move with the market's relative price action behavior that had market participants take action from their relatively real short-term position.
The average true range of 100 +/- points from its 'daily high / low' have been an obvious take from the market price behavior with a range between 8100 high - 7860 low. Thus leading some stock prices to drift even lower with barely a few stocks backing the intermediate trend lower. On the technical perspective, price action has been limited towards a negative bias with Industrial weighing on the general market direction, while financials have maintained its posture with a few hiccups from Holdings sector. PSEI Comparison between Index Sectors.
Although some have attributed the declines more towards a few heavy weights negative earnings report that saw prices making new lows, on top of the added pressure coming from geopolitical fundamentals the US and North Korea have sent global stocks lower.
True to its effect of a negative contagion increasingly spreading among global sentiments, the market's ability to overcome such 'Relative Misdirection' would be contained as evidenced by how the US have downplayed it from their recent media statements. So what would be your trade plan for the coming weeks? If you don't have one just follow our info sharing on the market that can be useful for traders and investors alike.
Although some have attributed the declines more towards a few heavy weights negative earnings report that saw prices making new lows, on top of the added pressure coming from geopolitical fundamentals the US and North Korea have sent global stocks lower.
True to its effect of a negative contagion increasingly spreading among global sentiments, the market's ability to overcome such 'Relative Misdirection' would be contained as evidenced by how the US have downplayed it from their recent media statements. So what would be your trade plan for the coming weeks? If you don't have one just follow our info sharing on the market that can be useful for traders and investors alike.
Here is an excellent Chart & Price Reference data from the PSE using Trading View as a charting medium. A very good way of monitoring prices and other pertinent information in real time that international investors and traders can use. Single and/or multi chart preference similar to the chart below can be made with multiple time frames.
ReplyDeleteTruly the PSEI higher moves have been justified reaching a relative high at 8082 while drifting lower on intervention at the closing minutes. Yet, the recent declines were indeed a 'SHAKE-OUT' when the PSEI marked its previous low at 7862/63 on the first 2 weeks of August. As indicated, these price action is much more than meets the eye; a 'Relative Misdirection'. And currently at 8046 as of today's closing.
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