The iSHARES MSCI Philippine ETF tracking the local PSEI have registered a new record high at 37.87 which have finally completed our previous call where the technical outlook which would make the 'W' formation have now been reflected on the chart. This would again provide other sophisticated and tactical investors & traders alike to enjoy the extensions of price liquidity in the US market with the record breaking prices from the PSEI. Of course, without discounting a greater probability for market shift & profit-taking activities that would have price pullbacks as a result.
And this came along side Travellers International Hotel Group - #RWM sudden reversal of fortune from a high at 4.49 from the good news over the wires. However, it also led prices to drift lower only to go below the 4.00 after the fact that was hyped from the newswires (so to speak); from capitulation, market shift & profit taking orders which saw a secondary low at 3.97 during the day.
Premium Access: #TSOT - #PSEI Record High at 8448 Has LEGS
A two (2) days equivalent price melt-up drove the PSE Index today as of the 17th of October to an 8586 high taking a lead from the record levels set in US equity markets. Only to drift lower entering the final pm session intervention before ending with a last minute decline back to the 8497; a net change of merely 49.80 points; which just about 0.59% (in percentage change).
ReplyDeleteA common pullback from the price extension above the 8550 - 8586 range that was driven by Direct Business Transactions better known as DBT on block sales prior to the last few minutes before the close.
Holdings were the biggest gainers on the floor with an 8777 value, a 142.77 point gain equivalent to a 1.65% up move for the day. With Mining / Oil as the biggest decliner followed by Industrial equivalent to a -0.93 and -0.76 percentage drop respectively.
And partly in victory celebration for the resolution of the Marawi crisis likewise provided the positive sentiments for traders and local investors.
PSEI POST Market MELT-UP Resulted into a SELLOFF
ReplyDeleteIndeed, the equivalent of a two day move confirmed today as a 'melt-up' have resulted to a bigger market sell off from the initial signal made from the last minute decline on Tuesday's trading. With the PSEI drifting to 8497 mark from a recent high at 8586.
The PSEI opening price higher gave the market ample time to consider their move before it drop to a week's low at 8332 before climbing back up for a relief recovery ending the day at 8431.73.
http://pse.tools/images/8afUtcmv-20171018.png
It is vital to identify and anticipate what the market does. And 'Price Action' analysis sets its best foot forward with signals not common seen on technical nor fundamental analysis. Understanding market behavior in live action is totally different on static charts and when a probable 'melt up' occurs in the market.
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Link: http://www.investopedia.com/terms/m/melt-up.asp
On the other side of the coin, the impeccable timing for the sale of Ayala's 7.06M shares; equivalent to a PHP7.5B block transaction could not have happened near the peak of its stock price. Thus prompting a continuing slide of 72.63 points for the PSEI ending the day at 8348.32.
ReplyDeleteIn times like this bear market developed Post -Melt-up last Oct 17th; investors and traders alike would have been able to adjust positions with short-selling strategies that could be quite useful. The PSEI is back at the 8244 session low ever closer to the 8103/36 psychological price and first line of defense.
ReplyDeleteThe irony of the matter, is that financial news agency up until now still call this bear market conditions as 'profit-taking'. And is not being fairly rational to report a market capitulation from those who got caught up on the higher price range that left retail and other traders to wait it out for the next higher move. And this is on top of the PHP depreciating value that continues its trend where local investors are experiencing a double whammy loss in stock value as well.
Unfortunately for now it would have a harder time to expect a price recovery and just be satisfied with a relief session recovery until Friday's closing marks.