Post PSEI's 8605 record level have given the market a much wider price range to work with a low at the current closing at 8433 as of Nov 10, 2017. This provided the market another 'Cluster Formation meeting a Resistance' level resulted into a whipsaw on stocks under performing the index to 'Diverge' from the current bullish sentiment as prices continued to pullback with the closing price of the PSEI.
Nov 13th - Monday's low at 8330 the PSEI High/Low trading range is back down from the previous month's gain. What else is new as foreign outflows leaves the PH market while main street absorbs decline. This 1st decline has validated our market call on the closing report last Nov 10 that provided a greater probability and bearish signal for a wider range in the making.
Today's Post PSEI closing price at 8273.44
Identified by Price Action from High / Low range, Not from chart pattern
Nov 15th - Wednesday's new low marked at 8260 remained while closing for the day at 8273.44 as stated above. The wider range have been the markets way of shaking out the rookies, (figure of speech) against tail-end, speculative FOMO trades made well within the 'Cluster' which not a lot would have probably noticed
Take Note of the chart dates: Starting from Nov 10 - 15th 2017 Price end-result
As defined, prices have met a level of RESISTANCE that has now been confirmed from three consecutive declines. Plus a backdrop of regional declines from Asia and the correction on US equities adding more to the selling pressure. But some news agency still reported that these decline were attributed to investors 'locking in profits' for lack of a better term by 'securing profits made earlier'.
Again, these are just two typical case examples we'd like to emphasize for local investor / traders to watch out for. Until such time the new guidelines on "Short-selling' be implemented by the exchange. And the PH stock market maybe well behind when it comes to global trading standards compared with the other notable exchanges providing a real even level playing field for main street investors the same way that professional traders and institutions have for greater transparency and accessibility.
Market & Price Call - VALIDATED by PSEI price Action from Nov 10 to the 15th 2017 market closing. Read 'Exclusively shared comments' on post which were made before and after the fact for proper reference and due diligence. Full disclaimer apply.
Related Information: Reversal of Fortune Part 1 - Post Meltup
If its any consolation, there are a handful of selected stocks that would back this near term trend that could deliver nascent value in the mid term. Know your tolerance levels and when to time cost averaging trade positions.
ReplyDeleteTrade with caution and invest wisely. As one of our valued viewer have stated ...why nobody said that it was difficult to trade stocks?...But if stock trading is difficult then Foreign Currency is indeed NOT for the faint-hearted!
The Saga Continues PSEI at 8206!
ReplyDeleteAs of Thursday Nov16, 2017 the PSEI have again not disappointed our expectation with the exception that it opened with a price gap lower at 8210 that saw the am session making a high at 8332. And obviously moving back lower to a new low at 8206.
The wide range for the day is 126 points with most stocks reacting to the GDP report initially and died down in the pm session. A normal PH market behavior which has ben identified as a market play from most institutional traders following the decline in the US market.
A modest price reaction from the 8206 low is expected for the week's closing but not discounting that the market price volatility between the high and low would be repeated. This trading methods applied by PH traders has become a norm until such time that it decides to change the tone.
PSEI Price Update: Copy & Paste on Browser
http://pse.tools/images/abXMZHAF-20171116.png
At mid-day Friday; Nov 17,2017 the early relief and modest price recovery have spurred the PSEI above the 8300 levels as expected. With US equities from an overnight triple digit price recovery and other regional markets have eased the previous days decline narrowly mixed moving into the closing week.
ReplyDeleteLet's see how Friday's closing numbers would be. As we came across market insights from Brian Johnson Ngan - CIO of Cedarside Holdings take on the market's reactions from the recent GDP data which he describes as a 'REBALANCE' that occurred with the stock market's price action. One single word that best describes the PH market.
This is the type of independent market analysis that the investors would expect more from an independent professional defining the insights that would matter most. And simply a far better market analysis rather than overstating the lack of one that described it as 'locking in investors profits'.
The end of November and start of December have defined the PSEI weakness which VALIDATED our Market Call dated Nov 10 to 15th - True Reversal of Fortune Part 2'. With the PSEI at 8145 an hour away from the week's closing Dec 01, 2017.
ReplyDeleteWith a straight forward calculation, the PSEI with a high at 8605 and current low at 8145 would have a difference of 460 point decline. Which is equivalent to pairing off its gains from where it all started to break up last September 2017.
The underlying weekly trading range after it established the highest price at 8605, have remained in triple digit range on a weekly average decline. The typical price action pattern of opening high and closing lower have been the market behavioral pattern. It just took 4 weeks for the PSEI to take back what it gave which took roughly 6 six to make it to the top.