Top Ten Smart Money Moves – March 25, 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 25, 2020 Data)
Total Traded Value – PhP 8.300 Billion – Medium
Advances Declines – (Ideal is 2:1) 158 Advances vs. 44 Declines = 3.59:1 Bullish
Total Foreign Buying PhP 3.281 Billion
Total Foreign Selling – (PhP 4.948) Billion
Net Foreign Buying (Selling) – (PhP1.667) Billion – 8th 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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PSEi returns to 5,000 level on BSP’s RRR cut
March 25, 2020 | 9:00 pm
By Denise A. Valdez, Reporter
THE MAIN INDEX broke into the 5,000 level on Wednesday as investors celebrate the central bank’s reserve ratio cut, which is seen to help address the economic impact of the coronavirus disease 2019 (COVID-19) pandemic.
The 30-member Philippine Stock Exchange index (PSEi) rose 253.49 points or 5.31% to close at 5,027.76 on Wednesday. The broader all shares index climbed 117.18 points or 3.97% to 3,065.13.
“The local market’s rally today was primarily due to the BSP’s (Bangko Sentral ng Pilipinas) 200 basis point RRR (reserve requirement ratio) cut which will inject more liquidity into the economy as it fights the impact of the COVID-19 spread,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a text message on Wednesday
“The BSP has been utilizing its arsenal lately to mitigate the effects of the coronavirus on the economy from the aggressive policy rate cut, to the buying of government securities, to the RRR reduction. Investors are appreciating this,” he added.
As the Philippines projects as much as a 0.6% contraction in the economy due to COVID-19, the BSP has been rolling out monetary stimulus to help cushion the impact of the fall.
On top of local developments, Regina Capital Development Corp. Head of Sales Luis A. Limlingan said the rise in the PSEi was also driven by optimism in US markets.
“Philippine shares soared as investors bet US lawmakers would deliver soon a stimulus bill to rescue the economy from the damage caused by the coronavirus and shutdowns designed to stop its spread,” he said in a mobile message.
US senators and officials in US President Donald Trump’s administration have reached an agreement on a massive economic stimulus bill to alleviate the economic impact of the coronavirus outbreak, White House official Eric Ueland said on Wednesday.
Wall Street jumped on Tuesday, with the Dow Jones Industrial Average, the S&P 500 and the Nasdaq Composite indices increasing 11.36%, 9.38% and 8.12%, respectively.
Back home, all sectoral indices ended in green territory on Wednesday. Holding firms gained 265.11 points or 5.63% to 4,967.76; property rose 135.80 points or 5.36% to 2,667.26; financials added 54.93 points or 4.97% to 1,158.80; industrials improved 247.10 points or 4.29% to 5,999.63; services increased 38.49 points or 3.73% to 1,069.03; and mining and oil climbed 110.68 points or 2.8% to 4,057.44.
Value turnover stood at P8.30 billion on Wednesday with 929.07 million issues switching hands, up from Tuesday’s P5.09 billion with 565.34 million issues.
Advancers beat decliners, 158 against 44, while 29 names ended unchanged.
Net foreign selling, however, increased to P1.67 billion from P1.05 billion on Tuesday. — with Reuters
Source: https://www.bworldonline.com/psei-returns-to-5000-level-on-bsps-rrr-cut/
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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.