It’s nice to be back again in Manila and it’s nice to have my website back again and running! I just love the feeling that I get to write again and share my thoughts and insights about the market. I’d like to thank all of you who sent emails asking for updates in the market while my website was undergoing an upgrade. It just shows that we are seeing a new breed of Filipino inevestors hungry and eager to learn more about investing.
As of this writing Shanghai has suffered its worst single day drop since 2007, dropping 8.5% today. With that negative sentiment it has also brought down most of the Asian markets as well. The PSEI not excluded as it has dropped 2.4% from Friday’s close. Our market, saw a glimmer of buying as the market tried to move up and escape the 200 day moving average which acts as the buying support of the market. It showed a bit of rescilience as it went on a string of 11 days of not falling and even breaking out of the downtrend last July 13. However it was not able to break the resistance at 7,640 and as of today has broken past the 200 day moving average.
If the market fails to bounce we may see the PSEI go back into the downtrend and may drop again over the short term to 7,315. Please note that even before all of this issues in Greece and China have been surfacing the market has been in a downtrend since April. What it is exhibiting now is merely the characteristics of a market that is headed down and moving down.
When will it go up?
I believe the market will continue to be in a downtrend until it convincingly breaks past 7,770 and moves upward. Until then the market is what it is – bearish.
What should you do now?
As what I always say in my talks and to my clients. Stick to your plan and strategy. Respect your techinicals as they will give you specific areas where you should buy and avoid your stock. God bless you hope this helps give you a perspective on where the makret is going.
If you want to learn more about stocks join me in my talks in and out of the Metro!
August 1: Manila – Stock Smarts Comprehensive Technical Analysis
August 14-15: Abu Dhabi – Stock Smarts Basics, Technicals and Fundamentals
August 16-17: Dubai – Stock Smarts Tactical Technicals
August 21-23: General Santos City – Stock Smarts Basics, Technicals and Fundamentals
October 3-4: New Zealand -Stock Smarts Basics, Technicals and Fundamentals
*Photo from Google Search
*Chart from ChartNexus