Top Ten Smart Money Moves – October 13, 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.
Top Ten Smart Money Moves – October 13, 2016
Trading Notes for Today – (Based on October 13, 2016 Data)
Total Traded Value – PhP 8.776 Billion – Medium
Market Breadth and Sentiment indicated by Advances Declines Ratio – (Ideal is 2:1 to be considered Bullish or Bearish) 164 Declines vs. 29 Advances = 5.66:1 Bearish
Total Foreign Buying – PhP 4.782 Billion
Total Foreign Selling – (PhP 5.530) Billion
Net Foreign Buying (Selling) – (PhP 0.748) Billion – 7th day of Net Foreign Selling after 4 days 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 further on Fed interest rate hike bets
Posted on October 14, 2016
THE MARKET extended its slide yesterday amid uncertainty in overseas markets and on top of heightened possibility of a US Federal Reserve rate hike, analysts said.
The Philippine Stock Exchange index (PSEi) lost 117.64 points yesterday or 1.58% to close at 7,312.18. The broader all-shares slid 60.24 points or 1.36% to 4,369.60.
“The Fed released minutes of their September meeting. It… basically suggested that a rate hike in December is still on the table. So the possible of a rate hike has put investors on risk-off mode,” said Victor F. Felix, analyst with AB Capital Securities, in a phone interview.
“This is continued downward momentum from Wednesday. On Wednesday, we went down because of disappointing preliminary US earnings. So losses in their market spilled over to our markets.”
He added that events scheduled for November contributed to the gloomy sentiment in the market yesterday.
“There is also uncertainty next month in the US elections and the formal OPEC meeting,” he said, referring to the Organization of the Petroleum Exporting Countries (OPEC). Also next month, the US will decide between US Presidential race between Republican nominee Donald Trump and Democratic bet Hillary Clinton.
For his part, Regina Capital Development Corp. Managing Director Luis A. Limlingan said: “I think the market was digesting the minutes of the [Fed] meeting,” he said in a phone interview.
He also cited China’s “lackluster” September trade data which showed a sharp decline in exports, as well as the US job openings numbers which fell to an eight-month low in August.
All subindices were in the red yesterday. Property fell 155.60 points or 4.62% to 3,206.08; mining and oil lost 154.46 points or 1.4% to 10,864.46; financials declined 16.95 points or 0.95% to 1,757.86; holding firms skidded 68.36 points or 0.92% to 7,348.17; services gave up 12.93 points or 0.91% to 1,407.05; and industrials dropped 90.40 points or 0.77% to 11,544.01.
Value turnover rose to P8.78 billion after 1.74 billion changed hands from P8.45 billion on Wednesday.
There were 164 decliners and 29 winners, while 44 were flat.
Foreigners continued to sell their holdings, with net outflows growing to P748.09 million yesterday from Wednesday’s P555.95 million.
Most Southeast Asian stock markets also fell on Thursday, tracking Asian peers after disappointing Chinese trade data raised fresh concern about the world’s second biggest economy, while fears over a Fed rate hike in December added to the subdued sentiment.
Sentiment was hit after minutes from a Fed meeting last month indicated that it might raise interest rates if the US economy continued to strengthen, and after a report that the Bank of Japan is likely to trim its inflation forecast for the next fiscal year in a quarterly review. — Roy Stephen C. Canivel with Reuters
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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