Top Ten Smart Money Moves – March 20, 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 20, 2020 Data)
Total Traded Value – PhP 6.662 Billion – Low
Advances Declines – (Ideal is 2:1) 117 Advances vs. 85 Declines = 1.38:1 Neutral
Total Foreign Buying PhP 3.969 Billion
Total Foreign Selling – (PhP 4.624) Billion
Net Foreign Buying (Selling) – (PhP0.655) Billion – 5th 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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Shares may drop further as coronavirus spreads
March 23, 2020 | 12:01 am
By Denise A. Valdez
Reporter
LOCAL SHARES are expected to decline further this week as the country continues its efforts to stop the spread of the coronavirus disease 2019 (COVID-19).
The 30-member Philippine Stock Exchange index (PSEi) improved 155.34 points or 3.36% to 4,778.76 on Friday. But this is lower by 1,015.18 points or 17.5% on a weekly basis, marking the fourth week the PSEi moved downward.
Value turnover during last week’s three-day trading week averaged P7.51 billion, 3.7% up from a week ago. Net foreign selling stood at P1.27 billion from P748.05 million the previous week.
Trading was suspended from March 17-18. It recorded its biggest single-day drop of 711.95 points or 13.34% to 4,623.42 when it reopened on Thursday. It also fell by as much as 24.29% to 4,039 in the intraday that day.
“[W]e expect another volatile week ahead in the market, and bias on the downside as COVID-19 cases in the Philippines are mounting and showing no sign of subsiding yet,” Philstocks Financial, Inc. Research Associate Claire T. Alviar said in a text message. “Many investors will still rush to have cash on hand due to the enhanced community quarantine in Luzon, which can drag the bourse further.”
The Health department reported 380 confirmed cases of COVID-19 in the Philippines as of Sunday morning. The virus has already killed 25 patients, while 15 have recovered from the illness.
Online brokerage 2TradeAsia.com said the effort of the government to put Luzon on lockdown will have to come at the expense of economic growth.
“Authorities are therefore in a precarious (and unprecedented) balancing act, leaving markets to spiral into speculation, and price-in longer storms,” it said in a note.
It noted that the problem remains a medical issue, therefore stimulus packages that try to pump out liquidity, while appreciated, may not be enough in the end. “[W]ith no hands to deploy said liquidity at the household level, markets will have to digest paltry earnings expectations, and favor safer heavens, at least for now,” 2TradeAsia.com said.
Bangko Sentral ng Pilipinas Governor Benjamin E. Diokno said on Friday that he expects growth to fall within just 5-5.5% this year, below the government’s 6.5-7.5% target. Philstocks’ Ms. Alviar said this may cause a weakening in investor sentiment as the market prices in this new outlook following earlier forecasts of strong economic growth.
2TradeAsia.com said what could help lift the market are investors hunting for sectors whose cash flow models are insulated, like telecoms and companies operating outside Luzon. Another are those betting on the recovery of worst-hit stocks like airlines.
“Advocates of the same with ample liquidity and stretchable time horizons will see the dip as opportunity to arbitrage the time difference (albeit gradually),” it said. It put immediate support at 4,000 and resistance at 5,000.
Source: https://www.bworldonline.com/shares-may-drop-further-as-coronavirus-spreads//
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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.