Top Ten Smart Money Moves – February 6, 2020
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 February 5, 2020 Data)
Total Traded Value – PhP 9.074 Billion – Medium
Advances Declines – (Ideal is 2:1) 110 Advances vs. 74 Declines = 1.49:1 Neutral
Total Foreign Buying PhP 6.468 Billion
Total Foreign Selling – (PhP 4.927) Billion
Net Foreign Buying (Selling) – PhP 1.541 Billion – first day of Net Foreign Buying after 6 days of Net Foreign Selling
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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PSE index rises to 7,500 level on firms’ earnings
February 6, 2020 | 9:00 pm
By Denise A. Valdez, Reporter
THE MAIN INDEX continued to gain ground on Thursday to break into the 7,500 level and recover following more than a week of decline.
The bellwether Philippine Stock Exchange index (PSEi) gained 153.66 points or 2.09% to 7,506.51 each on Thursday, while the broader all shares index improved 68.47 points or 1.57% to 4,422.72.
“Lately, there has been a shift of focus from the coronavirus concerns to market fundamentals. Attractive valuations are finally getting the spotlight backed by 2019 earnings anticipation,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a text message.
The PSEi posted a six-day losing streak due to concerns over the novel coronavirus outbreak. Investor worries pulled the market down since Jan. 27 until it hit its lowest on Feb. 3 at 7,137.03.
It started gaining ground on Tuesday as worries on the virus subsided, mainly after China’s central bank helped stabilize its markets through the injection of $57 billion into the banking system.
Mr. Tantiangco said the rising of the main index is seen to keep its momentum today, as investors are likely to react on the Philippine central bank’s reduction of benchmark rates by 25 basis points.
“Adding to today’s optimism was the awaited policy rate cut by the BSP (Bangko Sentral ng Pilipinas) which we saw just awhile ago, a 25 basis point reduction to policy rates,” he said on Thursday.
In Asia, most markets were also able to sustain their upswing in recent days: Japan’s Nikkei 225 and Topix climbed 2.38% and 2.07% respectively, China’s Shanghai Shenzhen CSI 300 and Shanghai SE Composite added 1.86% and 1.72% respectively, and Hong Kong’s Hang Seng index rose 2.64%.
Most Southeast Asian stock markets also rose on Thursday as investors picked up beaten-down stocks.
While most indexes clocked small gains in the last two sessions, current levels stand nowhere close to what they were at before Jan. 20 when the outbreak first drew the attention of global markets.
At home, all sectoral indices increased on Thursday’s close: property picked up 152.97 points or 3.94% to 4,027; industrials rose 170.80 points or 1.85% to 9,384.98; financials climbed 25.59 points or 1.45% to 1,784.38; holding firms gained 91.65 points or 1.29% to 7,172.04; services added 16.99 points or 1.13% to 1,510.58; and mining and oil went up 68.46 points or 0.93% to 7,369.45.
Value turnover was lower at P7.04 billion with 6.22 billion issues from Wednesday’s P9.07 billion with 1.27 billion issues changing hands.
Advancers outnumbered decliners, 115 against 70, while 46 names ended unchanged.
Foreign investors stayed bullish, logging net purchases worth P1.43 billion, slightly lower than Thursday’s P1.54 billion. — with Reuters
Source: https://www.bworldonline.com/pse-index-rises-to-7500-level-on-firms-earnings/
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In line with our VISION, A RESPONSIBLE TRADER 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. We have successfully launched “Swing Trading with TRT – a Definitive Guide for Swing Trading the Philippine Stock Market” last September 2, 2019. This book is the second in our Responsible Trader Education Series.
You can download Chapter 1 and see the Table of Contents here: https://drive.google.com/file/d/1NZEABnQMiQ_zenEMs0lPFWweX4WBxBHg/view?usp=sharing
The first book, “The Responsible Trader – a Thinking Person’s Guide for Trading the Philippine Stock Market” provided all the basic knowledge that a trader needs to know in order to trade the Philippine Stock Market effectively and efficiently. The first book is about the basics. This second book is about the specifics.
2. 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.
3. The Website: :http://www.theresponsibletrader.com where we publish our daily newsletter Top Ten Smart Money Moves, Stock Trading Lessons, and Inspirational Materials. (FREE)
4. 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)
5. 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.