Christmas is just around the corner! While the whole holiday season has been market by hope of a santa claus rally, by the looks of things that is not where we are headed for 2013.
By the way, before I show you today’s chart, let me show you how 2013 faired so you may compared it yourselves. Here’s how the PSEi looked as it closed out 2012:
Bullish right! Breakouts! Higher highs and higher lows!
This is where the PSEi is as of late. We sunk to as low as 5,762 last December 12 and then tried to bounce back but the rally was short lived as the market hit the resistance of the downtrend. We are still bearish over the short, mid, and long term. The market remains oversold so we make expect more rallies and bounces to occur. However the following price ranges must be broken for more “buyers” to come into the market: 6,018, 6,306, and 6,534. Breaking 6,534 would bring our market back from bearish to bullish.
Key support areas to watch out for are the following: 5,748, 5,637, and 5,484.
The charts that are shown all point to what is the the sentiment in the market. Fundamentals and valuations wise, things are looking good as great stocks just became cheaper in price. Again what we are seeing unfold are prices dropping but value and growth of the companies continue to go higher. If you follow technical analysis it would be good for you to come in once the sentiment shifts to a more bullish tone and once more volume comes back. If you are in it to invest, continue to go for stocks that have a big upside when you compare it to its stock price. Also go for growth and earnings prospects. You can never go wrong when you go for companies that are expanding and growing. In times when people are buying and selling based on emotion, those that win and earn are those that trade and invest based on their analysis and conviction.
It’s a few days before the year comes to end. I speak life over everyone’s investing and I do hope that this site continues to be a breathe of fresh air to every trader and investor moving towards financial freedom!
My book Stock Smarts: Stock Investing Made Easy is now out if you would like to grab a copy you may Click the Link to Register and Order.
If you’d like to learn more how to invest in the stock market and learn how to make your money work hard for you. I’d like to invite you to our upcoming events:
- January 15th Stock Smarts Basic – Learn how to earn in the Philippine Stock Market
- January 17th Stock Smarts Davao
- February 1st How to Find The Perfect Timing in Buying and Selling Stocks
- February 8th Stock Trading Timing Workshop
- March 1st Stocks Smarts: How to pick good stocks and avoid bad ones