Validated Market Call as of Dec 01 - PSEI Back to Square 1
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. With 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.
PSE Index as of Dec 01, 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 gained which took roughly 6 six to make it to the top.
Likewise, the related info link below reflects the 1st signal of a decline when a 'Melt-up' occurred and a 2nd signal came from a 'Cluster formation' which indicated a probable decline was in the making. And as of the closing month of November and entering the 1st day of December, the lack of fundamental drivers to sustain a rally while it continued the bearish market sentiment that prompted the PSEI to close at the 8144 levels where it originally came from. Not even the positive breath of the regional markets and especially the record high levels of US equities had no bearing with PH investors and traders.
Related Information: Reversal of Fortune Part 1 - Post Market 'MELT-UP'
PH investors and traders would eventually welcome the proposed 'Short-selling Program' by the PSE which is around the corner. For now, most of them would have to contend and wait it out for the time these programs be implemented.
ReplyDeleteOn the other hand, preparing for such program would at least entail investors and traders another perspective on how it could best be executed when the time comes. A considerable market re-orientation on how to best execute short-selling either as a hedge or a speculative strategy must take some serious due diligence.
As the embedded 'CULTURE' of trading PH stocks on the long side of the market vs. the short side would have to be learned properly and adjusted especially before every market intervention takes place. Otherwise, short-sellers would likewise be as susceptible to certain price action activities that would see an adverse direction, no different from being on the buying side of the market. This is practically true with the existing trading practices in the PH stock market. A deeper understanding of the intricacies of trading is a crucial subject to learn and be aware off.
A Follow Up Series on the PSEI Performance as of Dec 06, 2017 - PSE Stock Market Update.......The irony of the PH stock market has again proven our point time and again, when the PSEI window dressing recovery from the low of 8051 headed near the 8200 levels that resisted and then drifted lower towards the pm session.
ReplyDeleteThis time the 'Last Minute Decline - LMD' back to 8129 have left majority of the underlying individual stock components of the indices have stalled away after market intervention on the run off. Of course with a few financial stocks that held and even back the closing trend.
Nearing to kick off the Short Selling program would be great for retail investors and traders alike to do the same; as institutional do. Not that it has been an open book on such practices by professional traders. Once the green light is there, the next best thing is to have the TRANSPARENCY to know while comparing the intricacy on both sides of the trades before and after market interventions.
The PSEI Back to Square Root:
ReplyDeletePSEI Market Call & Projection - Post Sell Off 2 at 8051 low
Declassified: Sequence Analysis Post PSEI Market Sell-off
Since there where no significant fundamentals surrounding the PH stock market after making it 8605 high, profit taking activities were quite prominent for the PSEI and sub-indices to reflect a sell off on the individual stock picks.
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