Top Ten Smart Money Moves – January 3, 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 January 3, 2020 Data)
Total Traded Value – PhP 5.598 Billion – Low
Advances Declines – (Ideal is 2:1) 108 Advances vs. 68 Declines = 1.59:1 Neutral
Total Foreign Buying PhP 3.183 Billion
Total Foreign Selling – (PhP 3.341) Billion
Net Foreign Buying (Selling) – (PhP 0.158) Billion – 3rd day of Net Foreign Selling after a day 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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Local stocks post year’s first rise
January 3, 2020 | 6:23 pm
By Denise A. Valdez, Reporter
THE Philippines’ main index showed its first climb after three days on Friday as investors took cues on the mild improvement in the Philippines’ factory output for December.
The 30-member Philippine Stock Exchange index (PSEi) gained 97.26 points or 1.26% to close at 7,839.79, while the broader all shares index added 36.79 points or 0.80% to 4,655.54.
Darren T. Pangan, trader at Timson Securities, Inc., said the gains in the market were fueled by “positive reports regarding our IHS Markit Philippines Manufacturing PMI (purchasing managers’ index),” which came out on Thursday.
IHS Markit reported factory activity in the Philippines in December improved to 51.7 from 51.4 in the earlier month, driven by growing demand and higher exports. This may have drawn investors to local shares despite Friday’s generally thin trading, Mr. Pangan said.
Aside from the manufacturing report’s impact, optimism on the decision of China’s central bank to cut its reserve ratio requirement may have also affected the local bourse on Friday, Mr. Pangan said.
“Most global markets’ rally yesterday (Thursday) due to China’s reduction of their banks’ reserve cash requirements may have spilled some positive sentiment into our market today as we experienced profit-taking the day before,” he said.
Wall Street was a party at the maiden day of trading for 2020: the Dow Jones Industrial Average, the S&P 500 and the Nasdaq Composite indices all grew 1.16%, 0.84% and 1.33%, respectively.
In the Asia-Pacific region, trading on Friday was mixed: Japan’s Nikkei 225 and Topix indices shaved 0.76% and 0.68%, respectively, joining Hong Kong’s Hang Seng index in shedding 0.32%. But advancers were Australia’s S&P/ASX 200 index, which added 0.64% and South Korea’s Kospi index, which inched up 0.06%.
Back home, all subsectors ended in green territory, led by industrial, which jumped 196.67 points or 2.07% to 9,684.14 and holding firms, which gained 114.19 points or 1.52% to 7,631.72.
Property increased 28.55 points or 0.69% to 4,173.67, followed by services, which added 12.97 points or 0.85% to 1,547.27. Financials grew 12.47 points or 0.68% to 1,844.48 and mining and oil climbed 10.80 points or 0.14% to 8,020.76.
Some 659.2 million issues worth P5.6 billion were traded on Friday, or lower than Thursday’s 945.64 million issues worth P4.48 billion.
Stocks that advanced outnumbered those that declined, 108 against 68, as 59 names ended unchanged.
Foreign investors remained sellers, but net foreign selling was trimmed to P157.87 million on Friday from Thursday’s P852.24 million.
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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.