Strategy & 'Appropriate Technical Trading Approach'
A notable observation on the 'Market & Price Behavior' of the PSEI benchmark and its underlying stock components is where the 'Rule of Transparency' on the 'Timely Delivery' of sensitive information & policy decisions between the PSE announcement and the SEC's actual approval on 'Short-Selling' on June 5th is crucial for all market participants.
Such final approval came to light to the investing public released on June 22nd by the PSE could have been done earlier than the said date. For those well within the know, this information have already been known well within its circle that such approval has been made by the SEC. A timely inclusion well placed, since the PSEI's performance has been encircled with external factors that are extremely negative, pushing investors sentiments including the benchmark price index and underlying stock components more into record lows.
Short Selling among institutional players are an open secret but not commonly and openly discussed in the PH stock market trading. Especially that the application for approval from the SEC was still pending then. And its approval has been a welcome treat among investors and retail traders during the formal announcement last 22nd of June, 2018.
In comparison with the time line of June 5th to June 22 (11 days of actual trading) as described on the overlay chart; the degree of market volatility increased while the velocity / momentum of the decline other than what the market already know and digested, likewise have gained traction and established record lows even after the said date have been noted. Click to continue
Trade Update: PSEI Recovers from Lows
Sequence Analysis Validated as of Aug 3, 2018
Trade Update: PSEI Recovers from Lows
Sequence Analysis Validated as of Aug 3, 2018
Having a unique and effective perspective defined here, investors and traders alike would know their respective tolerable limits on the decline based on the real true average range on a daily / weekly price move.
ReplyDeleteWhile staying independent in their own market analysis away from what is being hyped in the newswire. As individual investors has their respective levels of tolerance, account balances, objectives and reasons for trading the stock / financial markets.
Paying close attention to detail is part of due diligence which can only help and derive a well informed investment decision.
ReplyDeleteThe probability of a relief turn around for now can be anticipated nearing the end of the 2nd quarter trading. It would not be a full turn around as a base pattern needs to be formed before an actual build up can be viewed with increase in volumes and fresh catalyst from external forces.
ReplyDeleteFrom the 27th of June 2018 comments above which was part of the market call for a relief recovery have been 'Validated' with a price high registered at 7838 dated as of August 1st. Pls revisit click to continue above for details of the info or copy & paste on another browser link below:
ReplyDeleteAs of June 25, 2018
http://www.megatrade101.com/index.php/component/content/article/72-latest-ll/991-describing-the-psei-price-action-other-than-trade-war-jitters