PSEi Update: March10, 2014 | Marvin Germo

PSEi Update: March10, 2014

By: Marvin Germo | March 9, 2014

If February 2014 was a great month for the PSEi, March is also trying to replicate that.  Moving from bearish to bullish after going past the 6,400 range, the PSEi is looking to surge forward to 6,630.

PSEi March 9 2014

This is what we know right now:

1.  Fundamentals are still very well in place.

2.  Growth in the Philippines is attractive.

3.  P/E Ratio is pegged at 18.85 (via bloomberg) which makes our market a notch more expensive at this point.

4.  Market is in a short term uptrend which started last February 5, 2014

5.  The 6,400 resistance has been broken.

6.  A group of stocks like AGI, DMC, SCC, and others have already hit higher highs while some stocks like BDO, ALI, and FGEn have also tried to rebound from its lows form last year.

7.  Money can made with a plan and a strategy in place and money can also be lost if emotions, hype and rumors would be the basis for your trades.

Via technical analysis this are some scenarios that may take place:

1.  Selling may happen at 6,630 and 6,815.

2.  The best place to buy would be at 6,400 if that support range would hold.  If it doesn’t I’m looking at 6,192 and 6,100 as possible areas of buying.

If you have bought previously:

It may be better to hold positions, maximize your gains and watch for 6,630 and 6,815  as  a place holder to sell if the market goes down after trying to reach those levels.

If you are a long term investor:

Better hold off buying first and wait again when the market goes bearish and buy at certain support levels.  Better let your profits just run for now. 

If you are doing peso cost averaging:

Better stick to your plan and buy the stocks that you have intended to buy.  It would be best not to change your tactics at the middle of the game.  Stick to your conviction and stick to your plan.  

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