1.0.9.03.15
A correction is a Wall Street term for when an index like the Standard & Poor's 500, the Dow Jones industrial average, or even an individual stock, falls 10 percent or more from a recent high. A bear market occurs when the index or stock falls 20 percent or more from the peak. http://abcn.ws/1JC3HlW
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| PSEi |
Philippine stocks reach it's peak last April 10 this year at 8127.48 minus 20% equals 6501.504 and with the index closing 6791.01 on August 24 and infra-day trading low of 6603.19 last August 25, will definitely make the market in a very deep correction ! But not yet in The Bear though...
If we take a look deeper into the picture above, what do you see ?!
From December 16, 2013, the market continued to rise until it reach it's peak on April 10, and slide into a sideways May this year until the 20th of August, 2015. Then the big sell off on the 24th...
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| Foreign Buy |
Now, we take a look how the smart money play their cards...
Starting From December 2013, they started their accumulations, then started slowly cash in before the market reach it's peak and then continued sell off up to now...
Looking into a bigger picture :
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| PSEi 2009-2015 |
Stretching our outlook in a six year frame,
Proves that this is a crucial moment where the 6 year bull is clearly being challenge by the Bear.
Will this be the end of the PSEi 6 year Bull ?!
No one knows for sure but we can make an intelligent guess and I hope your guess is as good as mine.
(Part 1)
