That price level is at the support line of the FIBO 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.
It's a matter of timing the next turn!
In today's PSEI bounce - a 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! Two (2) weeks in the making.
PSEI - After the Fact: Feb 19, 2018
Higher Volumes with Higher Prices
By then when demand picks up the same shares bought back can then be sold for a much higher price. After which a relative decline would follow as a well read cyclical pattern of the Market's behavior; soft on the opening, moves higher and closes lower on the afternoon session. The contrary move to this would only indicate that the market has legs until another catalyst gives way for the market to move otherwise.
But 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 ETF 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 full recovery in the making for the #NASDAQ ever since the VIX and US Treasury threshold have provided a green light for the recent rally. US Equities Relative Price & Volume Increase Attractive for Investors Again!
The BSP have cut the Reserve Requirement Ratio (RRR) for banks giving a substantial Liquidity in the banking system. This move have signaled that the BSP is willing to tolerate the weakness of the Philippine Peso (PHP) which led the exchange rate to a 52.50 high versus the USD.
ReplyDeleteWith inflationary pressure at the high end of 4% the BSP would take measures to intervene whenever it is called for. Meanwhile, news agencies reporting that the BSP may allow other foreign banks to intervene in its behalf is purely speculation and there is no basis for such a report.
The PSEI difficulty in sustaining a recovery without foreign inflows would be limited. The same goes for the price recovery muted from the market's continuing decline as momentum lost ground.
ReplyDeleteGreat move for institutional bargain hunters willing and able to get what retail investors still have to offer by way of market capitulation. With Short-selling program still sitting at the back burner of the PSE non priority to do list.
Currently, the PSEI is retesting its lows in the pm session dated Feb 22, 2018 nearing the afternoon intervention. As regional markets followed the US Equities decline and the PSEI reacting it the decline as always more than the upward move.
ReplyDeleteThis is not unusual as a 2nd retest was expected where a new weekly low could mark retail investors to throw another set of white towels on the floor. Where bargain hunters are on the prowl willing and able to buy them back. Watch for the closing price pullback for the PSEI from this result.
And by the time the PSE gets the Short selling program underway the market eventually could get back with its rally. And that is the biggest irony of the PH market place.
ReplyDeleteHowever, other tactical investors who have learned to access other markets are a different kind of breed as they adapt to market conditions whenever it is called for.
Tactical Investors / traders will know when the BASKETBALL would soon be at REST. And the new catalyst will again put it in MOTION.
ReplyDelete