Top Ten Smart Money Moves – November 21, 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 21, 2016 Data)
Total Traded Value – PhP 5.671 Billion – Low
Advances Declines Ratio – (Ideal is 2:1 to be considered Bullish or Bearish) 88 Advances vs. 86 Declines = 1.02:1 Neutral
Total Foreign Buying – PhP 2.953 Billion
Total Foreign Selling – (PhP 3.648 Billion)
Net Foreign Buying (Selling) – (PhP 0.695) Billion – 2nd 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:
PSEi drops below 7,000 anew on Fed hike jitters
Posted on November 22, 2016
THE MAIN INDEX slipped below the 7,000 line again on Monday despite hopes of an extended rebound amid the lack of local catalysts and lingering concerns over a possible US Federal Reserve rate hike next month.
After two days of gains, the Philippine Stock Exchange index (PSEi) declined anew yesterday as it closed at 6,979.06, down 1.25% or 88.67 points from Friday’s close.
The all shares index also dropped 0.74% or 31.66 points to 4,222.62.
“It’s a combination of negative news and external concerns and as well as local. We are seeing continued net foreign selling for the past few days,” said Lexter L. Azurin, assistant vice-president and head of research at Unicapital Securities, Inc.
He said the continued outflows in the market was due to local equities’ expensive valuations compared to the rest of the region.
“At the end of the day, investors are looking at valuations. There is no denying that despite the weakness in the Philippine market, we’re still at a premium at the rest of the region. The concern is a shift of funds from emerging markets back to the developed economies,” Mr. Azurin said.
Luis A. Limlingan, managing director of Regina Capital Development Corp., said overall, there was a negative sentiment in the local market despite the gains posted last Thursday and Friday.
“Since we rebounded last week, investors just saw an opportunity to profit.”
Mr. Limlingan added that there was lack of catalysts, which caused investors to focus on the possibility of a Fed interest rate hike before yearend.
Unicapital’s Mr. Azurin also noted that corporate earnings were quite benign, which further dampened sentiment among investors.
“There are some weakness in terms of corporate earnings, and investors are having a hard time justifying current valuations, so most of the investors are liquidating softer positions.”
All sub-indices were in the red. Property led the bloodbath with a decline of 1.9% or 60.11 points to close at 3,103.94, followed by mining and oil which closed 1.27% or 155.30 points lower at 11,989.96. Holding firms slid 1.16% or 83.12 points to at 7,080.28; services went down 0.99% or 13.13 points to 1,311.02; financials declined by 0.71% or 12.40 points to 1,712.43; and industrials dropped 0.20% or 22.50 points to close at 11,153.79.
Advancers narrowly beat decliners, 88 to 86, while 49 names ended unchanged.
Value turnover slipped to P5.67 billion as 1.97 billion shares changed hands, from the previous session’s P5.96 million.
Foreigners continued to sell their shareholdings, although net outflows dropped to P694.43 million from Friday’s P867.79 million.
“It’s really a negative outlook moving forward. In a way investors are looking for new catalysts that can pull the market and bring back confidence in the market. So far we haven’t seen that yet. Investors are looking for more attractive valuations,” Mr. Azurin said. — E.J.C. Tubayan
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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