Dead Cat Bounce ?!

 11.21.16
PSE index recovered and seen as forming a bottom last Tuesday (11.15.16), followed by 2 days strong uptrend brought about by euphoria of 7.1% GDP news. On Thursday, the market registered a positive foreign net buying of 62.6M for the first time in 6 consecutive exodus of smart money out of the local bourse but on Friday the selling continued with 867M foreign fund exiting the market that stagnant the market 2 day optimistic rise to an anemic .2% on the 3rd day.

PSEi

 

 

If the market fail to break the 7109 resistance this week, the dead cat bounce is a big possibility in the near term... (expect the market downward to 6800 level ). But if the market continue its uptrend enough to hurdle the 50% resistance, expect the market to test 7300 level onward recovery.

Good news(Local) vis a vis Bad news(International)...
I believe foreign NFBS will crucially dictates the momentum of the market direction this week so watch their trade appetite carefully.

For long term investors, this are good time for buying for bargain stocks.
For traders, be more careful and cautious in your trades.

CAVEAT

Is the Fear for real ?!

PSE index ended in a blood bath last Friday(11.11.16) due to market fear of Trump unexpected win in US presidential race (plus next month worries on FED decision to raise interest rate). Most analyst worries that Trump policy will greatly affect the billion dollar local BPO industries. By the way, almost 80% of BPO's are US base and thus cast cloud on Philippine economy. But is this fear justified ?!

Last Friday trade showed a Php2.4+B worth of shares  from foreign funds exited the market creating panicked selling that made the index loss 198.9 points or 2.77% thereby sending Philippine shares to it's 8 months low and biggest one day loss since January.

The bull run that started in 2009 has been breached that second time this year (10.27.16) thus creating doubts whether the index can recover loss ground this time around before the year ends.

Next week, the market index will definitely test the resiliency of the 6867 (38.2 % Fibonacci support). The last time on May 10 this year, the market closest approach to this support is 6941.
This will definitely guide us if the market will continue its downward projection or reverse course.

For the mean time, the good news is the 3rd quarter GDP is projected to 6.9 to 7%.(The Philippine Statistics Authority will report third-quarter GDP data on Nov. 17). More FDI coming in, and the government thrust in infrastructure projects put the economy in solid footing.

 The FEAR is not base on solid ground...
Philippine economy is fundamentally sound and booming.
The real deal is Ride the Fear !
Fear creates opportunities, and opportunities create wealth.
As Warren Buffet advised,
" Be fearful when others are greedy, and be greedy when others are fearful"

We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.
Read more at: http://www.brainyquote.com/quotes/quotes/w/warrenbuff173493.html

We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.
Read more at: http://www.brainyquote.com/quotes/quotes/w/warrenbuff173493.html

HAPPY BARGAIN HUNTING

Caveat !