To those who bought FMETF at the start of the year! Congratulations looks like you are on a roll and are earning quite good. It may not be like Double Dragon but the PSEI this year looks to be more impressive than what it was last year.
If we would track the gains of the PSEI since the start of the year, it is now up 21.1% and has been bullish since Feb 2014 this year when it crossed over the 200 day moving average. Until now, inspite of it being sideways for the past few weeks the PSEI still remains to be bullish for the long term.
As the market moves foward, we are now at mid August and this just proves that not all ghost months are the same. If you would look at the chart below (PSEI Aug 2013), the PSEI dropped form bullish to bearish and was on the midst of a long tiring road back up. This all happened during the ghost month last year, which is not the case this year.
Looking at the market for the short term here are some possible scenarios if you would want to time your entry:
1. Expect heavy selling at 7,100. Each time the market tries to inch closer to 7,400 expect more people to sell as some people who have been stuck since last year will try to sell at breakeven while others who entered the market early this year are now taking profits.
2. If the PSEI manages to hold the 7,000 level, we may try to see the market push to 7,250 over the short term.
3. If the PSEI fails to hold 7,000. We may see the market drop to either 6,900 or 6,800.
As the market opens next week watch what happens at the 7,000 levels. That will spell the different scenarios that may happen over the next few weeks. As what I have been mentioning over the past few posts, the PSEI still remains to be expensive compared to its past valuations.
I hope this charts help you gain more confidence on how you trade the markets. I hope this helps you become profitable and earn well as you develop you own strategy in buying and selling stocks. Thank you so much for 345 emails this week asking about stocks and other personal finance items. I promise to read them all and will reply to you the soonest possible time! God bless you and remember that you are now another day closer towards your dream of being financially free!
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*Pictures via google search
*Charts by chartnexus