Top Ten Smart Money Moves – November 18, 2016
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.
Trading Notes for Today – (Based on November 18, 2016 Data)
Total Traded Value – PhP 5.962 Billion – Low
Advances Declines Ratio – (Ideal is 2:1 to be considered Bullish or Bearish) 90 Advances vs. 81 Declines = 1.11:1 Neutral
Total Foreign Buying – PhP 3.015 Billion
Total Foreign Selling – (PhP 3.883 Billion)
Net Foreign Buying (Selling) – (PhP 0.868) Billion – 1st day of Net Foreign Selling after a day of Net Foreign Buying
Data from the Philippine Stock Exchange
Screenshot courtesy of: www.pse.com.ph
PSE HEAT MAP
Screenshot courtesy of PSEGET
Top Ten Foreign Buying and Selling
Top Ten in Total Traded Value
From now on, I will just quote the related article from Business World so that we will have everything in one piece:
Q3 GDP cheer waning
Posted on November 19, 2016
THE BOURSE extended its rally for a third straight day on Friday, but optimism generated by better-than-expected third-quarter economic growth seemed to be fizzling out as the increase was smaller than in the past two trading days and, this time, not all sectoral indices gained and net foreign selling returned.
Analysts said mixed third-quarter corporate results at home as well as concerns over potentially disruptive economic policies of US President-elect Donald J. Trump and the likelihood of a second US interest rate hike in nearly a decade next month came to fore once more in investors’ minds.
The Philippine Stock Exchange index (PSEi) added 17.61 points or 0.25% to close at 7,067.73, while the broader all-shares index climbed 11.88 points or 0.28% to finish 4,254.28.
PSEi’s Friday gain compared to increases of 1.59% on Wednesday, in anticipation of strong third-quarter gross domestic product (GDP) data, and 1.20% on Thursday when actual data reported beat market expectations and showed the Philippines growing fastest among major Asian economies, including China.
Similarly, the all-shares index gained 1.15% and 0.73%, respectively, on the same days.
Wednesday and Thursday also saw all six sectoral indices gain.
Joylin F. Telagen, equity analyst at I.B. Gimenez Securities, Inc., said that the market still owed its boost to Thursday’s news over the country’s 7.1% GDP growth for the third quarter that was at the higher end of the socioeconomic planner’s 6.3-7.3% estimate range for the period and which beat a 6.7% estimate median of an economist poll BusinessWorld conducted late last week.
The economy grew 7% in the first three quarters — compared to the 5.7% clocked in 2015’s comparable period — already at the top end of an official 6-7% target for the entire 2016.
“This was driven by better-than-expected 3Q GDP. But looking at market reaction, I think there is still selling pressure, maybe due to contraction of selected company earnings, uncertainties over President-elect Trump’s policies and concern that Fed might raise rates next month,” Ms. Telagen said in a text message yesterday.
Investors switched back to net foreign selling mode on Friday, unloading P867.787 billion, compared to Thursday’s P62.657-million net foreign buying.
According to a Nov. 17 Reuters report, US Federal Reserve Chair Janet L. Yellen said that a rate increase may come “relatively soon” in light of improving economic indicators such as labor market data, even as the US assumes new leadership under President-elect Donald J. Trump in January.
“Local markets bought up on the sentiment that Federal Reserve Chair Janet Yellen signaled that the central bank wasn’t about to roll over in the face of Donald Trump’s surprise election victory last week,” said Regina Capital’s Business Development Head Luis A. Limlingan in a mobile phone message.
“In addition, minutes from the European Central Bank’s October meeting indicated that policy makers, led by President Mario Draghi, were open to increasing their €1.7-trillion stimulus initiatives if that is required to help support the eurozone’s economic recovery,” Mr. Limlingan added.
“In terms of macro, housing starts surged at their fastest pace in more than nine years in October.”
Mr. Limlingan also cited the Philadelphia Fed’s Manufacturing Business Outlook Survey which suggested that regional manufacturing activity continued to expand in November.
Unlike the two previous days, PSEi saw two subindices end Friday with losses, namely: financials that shed 0.31 of a point or 0.01% to finish 1,724.83 and property which lost 3.64 points or 0.11% to end 3,164.05.
Most of the rest gained: mining and oil increased by 330.22 points or 2.79% to close at 12,145.26, holding firms moved up 36.48 points or 0.51% to end 7,163.4, industrials climbed 44.28 points or 0.39% to 11,176.29, while services finished flat at 1,324.15.
Value turnover fell to P5.962 billion from P8.14 billion on Thursday after 1.824 million shares changed hands. — Roy Stephen C. Canivel
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. 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/
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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 P8 Billion b. Medium – Total Traded Value P8 Billion but not more than P15 Billion c. High – Total Traded Value more than P15 Billion