Top Ten Smart Money Moves – August 9, 2019
Top Ten Smart Money Moves, starting January 2015, is the official trading newsletter of The Responsible Trader to promote his advocacy, Responsible Trading. This newsletter contains the previous day’s data from PSE, the Top Ten Foreign Buying and Selling, Top Ten in Total Traded Value, including Trading Notes based on the data of the previous day. This newsletter is given free to all the friends of The Responsible Trader and to members of the Facebook group and the other organizations where he is a member. For the previous issue where complete details about the newsletter was fully discussed, please refer to: Daily Top Tens October 17, 2014.
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As promised in my last post, Back from the Hack, we are resuming all our activities both in our website and Facebook starting August 1, 2019.
This section of our website has been running for the past five years. Perhaps you are asking, why Top Ten Smart Money Moves? This is what I have written in my new book: “Swing Trading with TRT – A Definitive Guide for Swing Trading the Philippine Stock Market.”
“SMART MONEY
The PSE achieved a milestone by the end of the year 2018 when they reported that the number of stock market accounts broke past the one million mark as a result of the substantial increase in online accounts.
Retail investors owned most of the stock market accounts, representing 97.5% of the total accounts while the remaining 2.5% is held by the institutional investors also considered as smart money.
While we, the retail traders, are big in number, we are small in terms of influence in the stock market because more than 50% of the Total Traded Value Daily is accounted for the institutional investors whose transactions are focused mostly on a handful of their selected stocks.
In our Website, we have a regular feature “Top Ten Smart Money Moves” where we monitor the Top Ten stocks being bought and sold by the smart money.
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Trading Notes for Today – (Based on August 9, 2019 Data)
Total Traded Value – PhP 6.167 Billion – Low
Advances Declines – (Ideal is 2:1) 84 Declines vs. 103 Advances = 1.36:1 Neutral
Total Foreign Buying PhP 2.832
Total Foreign Selling – (PhP 3.502) Billion
Net Foreign Buying (Selling) – (PhP 0.670) Billion – 5th day of Net Foreign Selling after 2 days of Net Foreign Buying
Data from the Philippine Stock Exchange
Screenshot courtesy of PSE.com.ph
PSE HEAT MAP
Screenshot courtesy of PSEGET
Top Ten Foreign Buying and Selling
Top Ten in Total Traded Value
Top Ten Gainers and Losers
From now on, I will just quote the related article from Business World so that we will have everything in one piece:
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Recent BSP rate cut seen to provide market lift
August 12, 2019 | 9:00 pm
By Arra B. Francia, Senior Reporter
LOCAL SHARES may rebound in the days ahead as investors continue to digest the central bank’s most recent interest rate cut.
The 30-member Philippine Stock Exchange index went down 0.76% or 59.77 points to close at 7,854.39 on Friday, bringing its weekly loss to 275.54 points or 3.39%. The PSEi weakened with the rest of the world on escalating trade tensions between the United States and China.
Philippine markets were closed on Aug. 12 in observance of Eid’l Adha, or the Islamic Feast of Sacrifice.
“My expectation is for the index to trade between 7,800-8,000 this week as investors continue to digest the rate cut by the BSP last week,” AAA Southeast Equities, Inc. President Matthew Cabangon said in a mobile phone message.
The Bangko Sentral ng Pilipinas cut benchmark rates by 25 basis points for the second time this year last Thursday in the face of slowing inflation and economic growth.
BSP Governor Benjamin E. Diokno told both ABS-CBN News Channel and Bloomberg TV that another reduction in banks’ reserve requirement could take place in the next few weeks, while another 25 bp cut will likely be on the table when the Monetary Board reviews policy for the sixth time this year on Sept. 26.
“Barring more negative surprises coming out from the US-China spat, I expect market volatility to subside and for the market to remain rangebound until the US Federal Reserve meeting in September,” Mr. Cabangon added.
China has continued to allow the yuan to weaken amid the trade spat with the United States. Aside from labelling China as a currency manipulator, the US has yet to retaliate. US President Donald J. Trump noted that Washington would still be talking to Beijing, but deals are unlikely for now.
Papa Securities Corp. Sales Associate Gabriel Jose F. Perez said via e-mail that he expects the market to move “sideways” in the trading days this week “with a lack of clear immediate catalysts.”
Investors could stay on the sidelines during the Aug. 1-29 “ghost month”, during which — according to Chinese tradition — they should hold off from making important decisions.
Amid the raging Sino-US trade war, Friday saw the Dow Jones Industrial Average slump 0.34% to close at 26,287.44, the S&P 500 index drop 0.66% to 2,918.65 and the Nasdaq Composite index give up one percent to end 7,959.14.
Most Asian stocks ended higher on Monday, amid the volatility seen in the previous week. Japan’s Nikkei 225 gained 0.37% or 76.79 points to 20,593.35. The Shanghai Composite surged 0.93% or 25.87 points to 2,794.55, while the Hang Seng index rose 0.48% or 123.74 points to 26,120.77.
Papa Securities’ Mr. Perez placed the PSEi’s immediate resistance at about 8,000, with support at around 7,720.
Source: https://www.bworldonline.com/recent-bsp-rate-cut-seen-to-provide-market-lift/
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In line with our VISION, A RESPONSIBLE IN EVERY FILIPINOS HOME, we aim to continue promoting financial literacy on the area of stock market trading and investing to our countrymen both here and abroad through the following:
1. The Book: “The Responsible Trader – a Thinking Person’s Guide for Trading the Philippine Stock Market” now earned the name “The Bible of Philippine Trading.” You can download Chapter 1, Section 1 of the book here: http://theresponsibletrader.com/the-responsible-trader-hope-for-trading-knowledge-test/. For those interested in the hard copy, please send email to: ninjatrader919@gmail.com Subject: The Responsible Trader – Hard Copy.
As requested by those abroad and those who want the book in digital form, we have produced an eBook version. For those interested please send email to: ninjatrader19@gmail.com Subject: The Responsible Trader – eBook Version.
The book can also be ordered online through our publisher, Central Book Supply. Just go to: http://central.com.ph/bookstoreplus then click Search – The Responsible Trader.
2. The Website: :http://www.theresponsibletrader.com where we publish our daily newsletter Top Ten Smart Money Moves, Stock Trading Lessons, and Inspirational Materials. (FREE)
3. The YouTube Channel: https://www.youtube.com/theresponsibletrader – where you can learn the course “Master’s Certificate in Technical Analysis” which was simplified in an easily understood manner. You can download these videos and learn them at your own convenient time. (FREE)
4. My Slideshare: http://www.slideshare.net/TheResponsibleTrader – where you can view and download copy of the Powerpoint Presentation of my TRT-POV (The Responsible Trader’s Point of View) of the videos posted in our Youtube Channel. (FREE)
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Good luck on all your TRADES today.
DISCLAIMER There is a very high degree of risk involved in TRADING. Past results are not indicative of future returns. Nothing contained in this newsletter constitutes a solicitation, recommendation, PROMOTION or endorsement of any security. In accordance with the Responsible TRADER’s Creed: I will never tell and you take full responsibility for all your TRADING results
NOTES: Please take note of the following changes. Effective August 6, 2015: 1. Caption Market Breadth has been changed to Total Traded Value to simplify the presentation. 2. Market Breadth is expressed in terms of Number of Advances and Declines. Expressing this as a Ratio by using the larger number as Numerator we derive the Market Sentiment whether Bullish or Bearish. 3. Based on Past three-year data of Average Total Traded Values, following classifications will be used to make the presentation more relevant to present times. a. Low – Total Traded Value less than PhP 8 Billion b. Medium – Total Traded Value Php 8 Billion but not more than P15 Billion c. High – Total Traded Value more than Php 15 Billion.
Starting with August 11, 2017 data we are including the Top Ten Gainers and Losers for a more comprehensive coverage of significant stock movements during the day.