Back to the old drawing board...so to speak!
With Friday's new high at 8605 levels had moderate volumes to account for the rally as corporate earnings beating expectations were giving the lift at the early session. Again, the irony of having re-established another wide range from 8365 to 8605 gave the market a good enough reason for a considerable pullback that ended the PSEI closing at 8376 slightly above from which it came from. This type of market behavior is to be expected and has become a norm for PH institutional traders with the exception that this Friday's pullback were overdone.
With Friday's new high at 8605 levels had moderate volumes to account for the rally as corporate earnings beating expectations were giving the lift at the early session. Again, the irony of having re-established another wide range from 8365 to 8605 gave the market a good enough reason for a considerable pullback that ended the PSEI closing at 8376 slightly above from which it came from. This type of market behavior is to be expected and has become a norm for PH institutional traders with the exception that this Friday's pullback were overdone.
#investors #trading #investing #strategies - For the Right Reasons
Stock components on the PSEI sectors generally left in the red have lost more than what they gained from the previous rally. The PH stock market's behavior we've seen countless times; where retail investors and traders are at a lost to manage such price swings and are left hanging with the bag.
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But if its any consolation SM has indeed marked 1000 in today's market action but pullback at the closing price of PHP967.00. A retest would not be discounted no matter where the PSEI goes. Naturally SM would not be left behind when it comes to their stock price. AC, SM and GTCAP are in, who's next in line?
Learn to anticipate market movements other than developing market timing as it surely can help traders avoid unnecessary trading pitfalls.
Most stock prices other than the 'Blue Chips' have stayed unchanged and/or barely moved with the rally as the PSEI is on a record level.
ReplyDeleteBut when it starts to correct downwards these stocks reacts more on the decline and 'FOMO' retail investors and traders scramble from the 'Tail-end of the Trades.'
Besides, VOLUMES and the total transactions were not enough to sustain the rally loosing steam resulted to an over reaction from market participants that drove prices back to where they came from especially unloading tail-end positions on a Friday liquidation.
ReplyDeleteFriday liquidation coming from Direct Business Transaction (DBT) orders well noted during the course of the pm session.
ReplyDeleteBesides this is where 'Short-selling' can make a difference in market strategy that others can apply in certain times such as what occurred last Nov 3rd. Let's see if and when talk issues coming from the PSE can do what they say they'd do for the best interest of Philippine investors and traders.
ReplyDeleteAt least the PSE through their office of the general counsel have released the guidelines on Short-selling Program. In turn we have sent our comments and constructive suggestions on this matter.
ReplyDelete