Top Ten Smart Money Moves – March 13, 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 March 13, 2020 Data)
Total Traded Value – PhP 10.721 Billion – Medium
Advances Declines – (Ideal is 2:1) 87 Advances vs. 139 Declines = 1.60:1 Neutral
Total Foreign Buying PhP 4.568 Billion
Total Foreign Selling – (PhP 6.209) Billion
Net Foreign Buying (Selling) – (PhP1.641) Billion – 2nd 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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Volatility seen amid uncertainties due to virus
March 16, 2020 | 12:01 am
By Denise A. Valdez
Reporter
LOCAL SHARES are seen to remain volatile this week as investors grapple with uncertainties brought by the coronavirus disease 2019 (COVID-19) pandemic.
The benchmark Philippine Stock Exchange index (PSEi) gained 57.67 points or 1% to close at 5,793.94 on Friday. But on a weekly basis, it dropped 14.42% to mark the main index’s third straight week of decline.
Value turnover averaged P7.79 billion, up 28% from P6.07 billion in the week prior. Net foreign selling last week increased to an average of P748.05 million from P449.93 million.
Last week marked the market’s entry into bear territory after losing 6.76% to 6,312.61 on Monday. It also saw two instances of the PSE triggering a 15-minute trading halt — called a circuit breaker — after falling at least 10% intraday.
The selloff in the market was primarily due to investor concerns over the worsening COVID-19 spread in the Philippines. After the World Health Organization officially declared the virus a pandemic last week, the Health department announced daily increases in confirmed cases in the country. As of Sunday afternoon, the Philippines had 111 confirmed cases and eight deaths due to the virus.
“[This] week, the market will continue to be volatile ranging from a support of around 5,000 to a resistance of 6,000. Definitely, this would be broad based on its negative effects especially on how the containment has effectively resulted,” Diversified Securities, Inc. Equity Trader Aniceto K. Pangan said in a text message yesterday.
“We see the stock market to under-perform [this] week as investors and fund managers digest the full impact of the disruption caused by the community quarantine and the rising number of COVID-19 cases,” trader Gab L. Magsino said in a text message Saturday.
He noted while the assistance from state pension funds may have lifted the market last Friday, “stocks could still suffer a decline should the number of infected locally increase at the rates similar to what we have seen in Europe and Middle East.”
For Philstocks Financial, Inc. Research Associate Claire T. Alviar, while the market may retain its volatility, a catalyst for the week is the expected announcement of a rate reduction from the central bank.
“The government’s instruction to the (state pension funds) to support the stock market by at least doubling daily average purchase volumes would give boost to the investors’ sentiment. This is in addition to the anticipated rate cut from the (Bangko Sentral ng Pilipinas) to somehow cushion the COVID-19 impact,” she said in a text message.
For PNB Securities, Inc. President Manuel Antonio G. Lisbona, another source of encouragement for investors is the improved performance of US markets last week. “This will likely have a spillover effect on our market,” he said.
Mr. Lisbona is putting initial support for the week between 4,800 and 4,900 and resistance at 6,700.
Source: https://www.bworldonline.com/volatility-seen-amid-uncertainties-due-to-virus/
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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.