Top Ten Smart Money Moves – December 12, 2016

Smart Money Moves_Final

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.

 

Trading Notes for Today –  (Based on December 12, 2016  Data)

Total Traded Value –  PhP  6.268 Billion – Low

Advances Declines Ratio – (Ideal is 2:1) 108 Declines vs. 82 Advances = 1.32:1  Neutral

Total Foreign Buying – PhP 3.967  Billion

Total Foreign Selling – (PhP  3.408 Billion)

Net Foreign Buying (Selling) – (PhP  0.441)  Billion – 2nd day of Net Foreign Selling after 2 days of Net Foreign Buying  

 

Data from the Philippine Stock Exchange

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Screenshot courtesy of: www.pse.com.ph

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PSE HEAT MAP

Screenshot courtesy of PSEGET

Top Ten Foreign Buying and Selling

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Top Ten in Total Traded Value

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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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Stocks plunge as markets eye Fed policy meeting

Posted on December 13, 2016

STOCKS slumped to start the week ahead of the US Federal Reserve meeting, where policy makers are almost certain to raise interest rates.

After regaining its hold of the 7,000 level last week, the local bellwether Philippine Stock Exchange index (PSEi) dropped 2.47% or 174.27 points on Monday to close at 6,868.89. The PSEi is again in the red for the year or from its end-2015 close of 6,952.08.

The all-shares index fell 1.58% or 67.00 points to 4,162.39 points.

“It’s really the anticipation of the rate hike,” said Research Head at Unicapital Securities, Inc., Lexter A. Azurin by phone.

The Fed’s policy-setting Federal Open Market Committee is scheduled to meet on Dec. 13-14. Investors expect the US central bank to hike interest rates for the first time in a year.

Fed Chair Janet Yellen is set to speak after the meeting to elaborate on the economic outlook and policy statement.

Mr. Azurin added that the expected monetary policy tightening “removed the overhang in the market with the rate hike in the US long overdue already.”

The analyst said the Fed hike adds to the negative sentiment, with high valuations following the lackluster financial performance of many local companies already plaguing market.

“The uncertainty over the meeting is how many basis points [the hike will be]… It will also surprise if they don’t raise interest rates,” Victor F. Felix, equity analyst at AB Capital Securities, Inc. said over the phone.

Most subindices were in the red. Services plummeted 2.71% or 35.61 points to 1,277.57; property plunged 2.49% or 79.42 points to 3,100.01; financials went down 2.49% or 42.66 points to 1,665.86; industrials declined 1.90% or 211.65 points to 10,883.05; and holding firms slid 1.86% or 132.24 points down to 6,978.75.

Only mining and oil sub-sector ended in the green, up 0.17% or 20.40 points to 12,034.02 following the Organization of the Petroleum Exporting Countries’ decision to slash production next year, which drove up crude prices in the global market.

Value turnover stood at P6.27 billion, lower than Friday’s P7.16 billion as 2.65 billion shares changed hands.

Losers outnumbered winners, 108 to 82, while 40 issues were unchanged.

Foreigners continued to dump their stocks, with net outflows recorded at P441.05 million, lower than Friday’s P942.42 million

Mr. Felix said investors are expected to trade more cautiously as the Fed meeting gets under way.

The PSEi may trade within the 6,700-7,000 levels today as markets await the result of the Fed’s policy review, Unicapital’s Mr. Azurin added.

Other Southeast Asian stock markets fell on Monday as investors were risk-averse ahead of a widely expected rate hike by the Fed. The possibility of a rate hike has been almost fully priced in by markets, and the focus would be now on whether the US central bank hints of further monetary tightening in 2017. — J.C. Lim with Reuters

Source: http://www.bworldonline.com/content.php?section=StockMarket&title=stocks-plunge-as-markets-eye-fed-policy-meeting&id=137658

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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/

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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)

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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)

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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 P8 Billion b. Medium – Total Traded Value P8 Billion but not more than P15 Billion c. High – Total Traded Value more than P15 Billion

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