The market has been fun over the past few weeks, we clearly are out of the downtrend and whatever movement you are seeing now is just a by product of how bullish our market is. As what I always say in my talks, a bullish market no matter what dirt you throw at it will still remain bullish until proven otherwise.
Mutual Funds and others
For those who are following the market in general or those who like buying FMETF, index funds, UITFs or mutual funds you may use this post as a reference also on how you can manage your buying and selling as the PSEI is reflective of what is happening in the market as a whole.
Just a quick plug before we proceed with this article, we will be having Stocks Smarts UAE 2016! This time we will have over 15 training sessions over a 2 week period! If you are investing already in mutual funds & real estate and want to take it a notch higher and invest in the stock market, this is something I would like to invite you to attend! If you are from other regions of the world, we also have Stock Smarts in Singapore, Australia, Manila, Cebu, Qatar and New Zealand in the next few months and also ICON will be back at Samsung Hall this year! It is my greatest desire to see more Filipinos abroad and for them to learn the right way to invest. It’s just a bout time that we reduce scams and we see more people move in from consumers to investors!
After hitting the short term support at 7,196 just four days ago the market is experiencing an upward rally just because of that. You have to remember that fundamentals determine value and direction of the market over the long term but it is sentiment and supply and demand that pushes the market over the short term.
Because of this we may see the market extend higher to probably around 7,402. Take note of this price range as this would be a critical to watch.
Short term traders:
If you trading the market for the short term, watch out for 7,402. If it fails to breakout from this level. Take profits first and come back again after you see the market correct. For those who attended the stock smarts sessions, just follow the support/resistance formula on how you can buy and sell at this for the short term. So even if the market does not go up yet on extended periods you can maximize the swings and profits from that.
For mid to long term traders and investors:
We have no sell signal yet. The market is still bullish and is still progressing in its uptrend form. It would be interesting to see if the PSEi breaks out of 7,402. Because if it does, we may see the PSEI move higher to 7,660 over the short term and you can hold you stock even all the more. Also if the market breaks out of 7,402 this will bring the PSEI back to its long term up trend. This is good news specially for those who are investing pretty much for the long term.
The market will continue to stays bullish as long as it stays above 7,072. Should the market at any point drop to this level and bounces this would be a good buy signal for you.
Thanks to everyone for all your posts and messages! I am glad that this website is helping you do better in your trades! God bless you all!
This is aimed to help investors have a holistic sense on how they can grow, maximize, and preserve their wealth!(Stock Smarts Book 4 is also coming this year) I also feature other books in my website with authors that I respect which have different expertise in Finance, Business, Investing and everything else in between.
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