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