For the first time in more than 4 months the PSEI has broken its uptrend. Coupled by not so good sentiment that our GDP did not perform as expected. Don’t get me wrong our fundamentals are still amazing, at this point the slowdown in the GDP can be attributed to the effects of Yolanda from last year.
The market buys and sells out of sentiment and at the end of the day. Traders and investors are there to take make money and take profits and this may be just the trigger that they are looking for to sell and take money off the table. Markets cannot go up forever and there are times when uptrends stock to give way for investors to take profits.
If the PSEI does not hold the market may drop to a range of 6,500 – 6,646. At this point its important to trade your plan and plan your trade and to stick to your game plan and strategy. Money can and will be made when emotions are off the table and you use this moment to use your methodology and logic to work for you.
God bless you and may the the next 7 months of the year be another amazing run for you and your portfolio~
I’d personally watch specific stocks and take profits on those that have broken the uptrend.
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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:
- June 7th Stock Smarts: Firm Foundation
- June 7th Stocks Smarts: How to pick good stocks and avoid bad ones
- July 19th Stock Smarts Singapore 2014