Nothing has changed in the market. We are still sideways. I mentioned in previous blogs (read: When the Market goes Sideways) and videos (watch: PSEi 8000) that the market is still sideways and until we breakout of the 8,000 / 8,100 levels the market will still remain that way. I have received a lot of questions whether the market will stop going sideways after the S.O.N.A. or ghost months. My answer has always been consistent, my goal as a trader is not to guess what will happen in the market but my goal is to follow the charts and to buy when I see it breakout or bounce from the support at this point we have not broken out yet. Never speculate and never guess. You cannot form a a strategy from speculation and guessing. Your goal should be to create a strategy that you can use over and over until you hit your financial goals.
Catch me in my live training events! (quick plug)
The heart of why I do this seminars is I want to build a generation of Filipinos with the right foundation in stock investing. I want to bring smart investing to every Filipino around the world! If you would like to know more on how you could time the market checkout the trainings below. We are doing Qatar this November and Davao this October!
Stock Smarts Iloilo — July 29 – July 30, 2017
Stock Smarts General Santos — August 25 – August 27, 2017
Stock Smarts Manila — September 9,10, 16 & 17, 2017
Stock Smarts Cebu — September 30 – October 1, 2017
Stock Smarts Malaysia — November 4 – November 5, 2017
Stock Smarts Sydney Australia — November 11 – November 12, 2017
Stock Smarts Singapore — November 25 – November 26, 2017
1. The PSEi’s two month movement (May 2017 – July 2017)
What does this show us? From the chart below you can see that the market is still sideways. The range is moving from 7,700 – 8,000.
Trading Plan: Buy at 7,700 and sell as it approaches 8,000.
What should you do tomorrow? Avoid the market, as it is far from our buying range.
Breakout? Buy the market should it go above 8,000/ 8,100 levels. If that happens the target of the market will be at 8,500.
This is how the PSEI looks like in a more stretched perspective
2. The PSEi in a three year sideways movement (March 2014 – July 2017)
The chart spans deeper as it bounced from the 6,000 level on March 2014 from that time on it has always bounced higher after hitting 6,000.
What does this show us? This shows us that both short and long term trends confirm that the market is going nowhere and we are just consolidating. From the chart below you can see that the market is still sideways. The range is moving from 6,000 – 8,000. With 6,500 – 8,000 from a more shorter timeframe.
Trading Plan: If you have a longer time frame the best time for you to come in is at 6,500 or 6,000. However just to balance things out, it will take a long time for the market to do that as there is a very strong support at 7,400 that will protect the market from falling. Just to add another layer of context the market may not even go back to this levels. However if you are a long term player and you are in it to buy at cheap price and should 7,400 not hold you may take this levels into perspective.
What should you do tomorrow? Avoid the market, as it is far from our buying range. It would be best to stockpile cash now and wait for a large correction or if we breakout from 8,000 / 8,100. If we breakout from those levels buy!