Top Ten Smart Money Moves – October 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 October 18, 2016 Data)
Total Traded Value – PhP 8.352 Billion – Medium
Market Breadth and Sentiment indicated by Advances Declines Ratio – (Ideal is 2:1 to be considered Bullish or Bearish) 123 Advances vs. 68 Declines = 1.81:1 Neutral
Total Foreign Buying – PhP 3.999 Billion
Total Foreign Selling – (PhP 4.106) Billion
Net Foreign Buying (Selling) – (PhP 0.107) Billion – 10th 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 back above 7,500, but foreign selling persists
Posted on October 19, 2016
THE BOURSE’S key index yesterday recovered above the 7,500 mark that was last seen a week earlier, riding largely on brighter Philippine growth projections of Moody’s Investors Service, which nevertheless flagged in an Oct. 18 report that “political risks have become less predictable.” Foreign sellers, however, still outnumbered buyers.
The Philippine Stock Exchange index jumped 212.94 points or 2.89% to end 7,571.15, while the broader all-shares index similarly rose by 92.81 points or 2.12% to close at 4,460.38.
Unlike Monday which saw only two sectoral indices gain, all six counters rose yesterday.
“I think the main catalyst today would have to be the Moody’s report,” said AB Capital Securities analyst Victor F. Felix said by phone yesterday. “Basically, they’re just reaffirming our strong fundamentals despite a reduction in predictability concerning our political policies because of the new administration.”
Mr. Felix said global factors may have also fueled local equities yesterday, particularly citing global oil prices still hovered around $50 per barrel, lower risk perceived by investors of a US interest rate hike next month, as well as expectations of strong third-quarter corporate earning results that have begun to trickle in.
“I think a lot of investors are not expecting a rate hike this November in the Fed meeting, so that should push the equities higher. Oil prices also gained during trading so that could also be another lift,” Mr. Felix said.
“Moreover, I think a lot of investors are positioning ahead of corporate earnings. Maybe they’re expecting strong results from the index heavyweights.”
Regina Capital Development Corp. Managing Director Luis A. Limlingan shared this opinion.
“PSEi along with Asian stocks rose as mixed US economic data supported the case for monetary policy to remain accommodative,” he said in a text message.
“Investors shrugged off a weak performance from US stocks, which closed with modest losses as oil prices eased through $50, following largely cautious commentary from three-high profile investors and despite solid corporate earnings.”
All sectoral indices ended with gains yesterday, with property stocks taking the lead with a 126.37 points or 3.92% gain to end 3,347.23.
Holding firms followed with a 248.79 points or 3.35% boost to close at 7,665.97, services came next with a 31.61 points or 2.23% hike to finish 1,450.99, financials added 27.43 points or 1.54% to settle at 1,806.90, industrial firms increased by 129.26 points or 1.12% to 11,643.65, while mining and oil climbed 84.19 points or 0.75% to close at 11,352.49.
Value turnover rose to P8.35 billion after 1.35 billion shares changed hands from P6.72 billion on Monday.
There were 123 winners, 68 losers, while 35 other stocks ended flat.
Net foreign selling thinned by three-fourths to P107.35 million from P448.51 million on Monday. — Roy Stephen C. Canivel
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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