Week ending Feb 02, 2018
The PSEI ended the week of Feb 2, 2018 with a massive market sell-off after marking a high at 9078 with a low at 8721 while closing for the week with a sign of relief at 8810.75 (round figure). The price recovery on the close was agian triggered from a last minute bid as the benchmark index pullback from the low session ending with a net change of +72.03 +0.82%.
It's a matter of timing the next turn!
Net foreign sellers have continued their market outflow as prices have continued their decline and saw an opportunity to exit with the price recovery at the end of the session. A total net negative trading range from its high /low band for the week is 357 nearing last month range of 461 basis pts to say the least. Meaning that it bearly took a mere weak to pared gains made from its rally in January alone.
While the overall market trend for the PSEI still is intact, only to time the next turn is what needs to be taken into consideration. The overwhelming market sell-off have had a wide dent for retail investors and traders alike, but the narratives would not be reported as widely when it comes to the rally and profit taking action..In spite of news agencies account and financial summary reports of profit taking activities have generally surrounded the market.
Apparently, there are more decliners than advancers with the obvious unchanged watching on the side line as to where prices would end after three consecutive down days.
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High Net worth individuals including main street investors and traders alike would have to consider strategies and market plays. Why?
ReplyDeleteMarket conditions are generally at a loss in portfolio VALUE on top of decline stock share prices, the turn around of the Philippine Peso depreciating value is actually a 'DOUBLE WHAMMY' for the bottom line.
Being a Tactical Investor is a smart move to do! And MegaTrade One-on-One is just a click away!
Time to Shift Gears!
ReplyDeletePSEI opening GAP have attained the initial objective level marked in violet color at 8545/55 range session low as indicated above. Let's see how far this goes on an early Monday trade.
ReplyDeleteThe Fibo Pitchfork have served to be the most suitable tech tool to apply with the chart formation as it is integrated with the rising channel.
ReplyDeleteExtensions can occur in the range of 8385 -8430 as a deep price action where most sectors could continue the decline. Which in turn would provide a blowup volume to emerge from market capitulation and/or a catalyst to provide fresh market incentives to build up a counter trend direction.
It is only 'AFTER THE FACT' when prices have moved that both 'TECH & PRICE ACTION' Analysis applied with the PSEI reference chart above is right. So far based on our last market & price call dated the 5th of FEB.'2018 indicated that the extension of the decline at 8379 has held well.
ReplyDeleteThat price level is at the support line of the Pitchfork price projection and allowed the PSEI to recover from its lower band while currently at 8750 to this writing; a +371 points rise from the bottom price, equivalent to 53.07% recovery from its high at 9078.
So far, the effectiveness of the trade application have been seen as beneficial after a long weekend holiday including that of the traditional Chinese New Year. This also added to the PSEI's positive market tone plus the fact that that the PSE has now moved to its new HQ that practically drove an upbeat roar for most Chinese market participants that make up majority of the local investors.
In short the PSEI Bounce Back is Relative to a BASKETBALL.
ReplyDeleteSince the bounce of today's PSEI move above the 8700 levels supported by higher volumes can only be attributed to local PH institutions and investors making it a bit more attractive for foreign inflows to come in. It's practically an invitation!
ReplyDeleteBut through our gathering of research data, it would not be a surprise if and when PH institutions have taken up bargain hunting positions from the recent declines through their buy back programs struggling to accumulate their fair share of the market's retail investors capitulation and market sell off. And similarly taking trade positions ahead of the US market's open in the ETFs on the PH market buying up the EPHE as well.
Its a market play that MegaTrade101 does in a similar fashion which we emphasize more than enough for US/PH Asian investors to do what is relatively right since there are still no word of the PSE Short selling Program.
However, no indication so far from foreign investors to take it up as US equities has been in a 'V' shape recovery ever since the VIX and US Treasury threshold have provided a green light for the recent rally.