And USD43B Market Value down the drain!
A new low at 7092 resulted from another opening gap lower as fear of trade war escalated between the two major economies and PH Peso depreciation. Widening #deficit have re-emerge from the news as an add-on but failed to be a convincing factor. And with the BSP raising its rates had no effect with the current market condition to ease the momentum decline.
While others analysts who claim that the PH #stock #market we're isolated from external influence because of the 'Train & Build, Build, Build' program are no where to be found as new guest resource persons are highlights of the discussion. By the time the third quarter comes in and 'Short-Selling' will again be discussed as we made mention, the SEC and the PSE should do more for retail investors / traders.
As of June 21, 2018
PH investors and market participants should be able to voice out what needs to be address, but it seems even if they did it would fall on deaf ears. Ample warnings were literally been made both from the month of March and April consecutively.
Fair Warning 2nd Notice:
PHP weakness & PSEI Bear Market Outlook
Fair Warning 2nd Notice:
PHP weakness & PSEI Bear Market Outlook
+MegaTrade101 As such this could have been avoided by being more open to specific market conditions presented along the way since March.
For trading solutions send us an email request of your current market condition and we'll be glad to assess and come up with the appropriate strategies to outmaneuver the market.
Quote from PH News Report:
ReplyDeleteA Bear Market occurs when there is a widespread pessimism, causing a drop of at least 20% over a two month period.
Source: Rappler
True enough when it comes to defining the term. However, when certain market conditions presents itself to do otherwise after a bull run and for investors to wait for two months would endanger the overall investment portfolio made over the course of the period.
If and when investors would follow such a rule of thumb, so to speak! Then they would end up down by 20% simply by just watching the prices decline to these levels. Aggravated by 'Cost Averaging' on the major selloff or a major correction is equally dangerous.
Safe guarding and preserving what has been exposed in the market should always be covered and avoid unwarranted trading losses that could turn into a 'Catastrophe'. Smart moves from tactical investors are always encourage.
Out of the past 5 months of decline for the PSEI; the last three months have been identified with a 'Divergent TREND' between the USD and US Equities. Where the previous three months was a bull revival coming from a major sell off.
ReplyDeleteAnd this also have been in line with the similar cyclical pattern of April'15 and August of 2016 price action that created a reinforced divergence where we have derived a contingent plan to go long with the USD since February and scaled on the way up.
It finally happened! The market selling pressure must have been enough to push the SEC to take action. With PSE President Ramon Monzon provided the news via email message just to get the good news out before the market open on Monday.
ReplyDeleteHopefully the program to short sell only PSEI corporate members would now be used right by main Street investors & traders. No eager beaver when the dog's tail is still wagging.
https://www.bloomberg.com/news/articles/2018-06-24/philippine-stock-exchange-gets-sec-approval-for-short-selling