As we all know the PSEi is the benchmark of what is going on the Philippine Stock Exchange as a whole. I have created my PSEi updates for those who would want to have a general sense of what is happening in the market, for those who are investing in Mutual Funds, UITFs, VULS, FMETFs and those who would want to compare their current stocks as to where the market is headed. A portion of this update I have shared in my guesting in Bloomberg Philippines last Friday. For those who are relatively new to the market, you may click this link and watch this video first.
Stock Smarts Singapore
Before that, I’d just like to make a quick plug on our Stock Smarts Training series in Singapore this June 24-25. If you have friends and relatives that may benefit from this I would appreciate if you could cascade this to them. My greatest desire is for more Filipinos abroad to learn the right way to invest. We also have events in UAE, Cebu, Australia, Manila and New Zealand in the next few months for other kababayans in the area.
Now lets get back to business!
Three things about the PSEI
The PSEi has moved up 22% from January 22, 2016 to March 21, 2016. In a span of two months and a lot has happened that has changed the general direction of the market from fear to hope. As of this writing three things are still evident:
- We have been out the downtrend for more than a month now.
- The market turned bullish last March 14, 2016 and is still bullish until now.
- There is a sizable amount of investors selling at the 7,400 level and the market dropping the past few days is a reaction and we are experiencing a short correction now.
For Passive Investors and position traders:
There is no sell signal for you yet. The market is still as bullish as it can get. You can still hold on to your positions at this point. However, if the movement the past few days pushes stronger, the market may correct over the short term to 7,150 to around 7,070. For those who still don’t have positions, this is the cheapest place for you to come in to the market while it is still bullish. It would be great to buy or top up into your mutual funds specially if the market bounces from 7,070.
A word of caution, you have to watch out though for the 7,070 price range, the market must bounce back from that after correcting if not the market will turn bearish again and you do not want to be in the market when the market is bearish. I personally would want to sell if this price range is broken.
For Quick Traders
While for those who are trading quickly, it is evident that there is a resistance at 7,400. As the market tries to approach this price range expect the market to experience selling. If you want to trade quick take your profits every time the market comes near this price and fails to breakout.
However, should the market breakout of 7,400, the next target for the market would be set to 7,680. You can hold your positions and just maximize the breakout further.
To balance everything out, if the market drops and the support at 7,070 does not hold the PSEi could lower and go to 6,850.
Please take note of this numbers as this can be strategic areas for you to buy, sell, hold or avoid the market. I hope this helps you plan your investments well. God Bless you all and have a great weekend ahead.
New Book and other books on Investing, Business and Finance.
I’m excited to share my latest book, Where Should You Invest? This will answer one of the biggest questions on the what, where and when you should invest on. I will also tackle the concept that there are certain investments that work well with others and some investments that don’t work well at a certain investment phases.
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.
For more details and to order: Marvin Germo Book Orders