Top Ten Smart Money Moves – October 20, 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 20, 2016 Data)
Total Traded Value – PhP 6.944 Billion – Low
Market Breadth and Sentiment indicated by Advances Declines Ratio – (Ideal is 2:1 to be considered Bullish or Bearish) 100 Advances vs. 79 Declines = 1.27:1 Neutral
Total Foreign Buying – PhP 4.123 Billion
Total Foreign Selling – (PhP 3.705) Billion
Net Foreign Buying (Selling) – PhP 0.418 Billion – 2nd day of Net Foreign Buying after 10 days of Net Foreign Selling
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:
Stocks barely budge on final Clinton, Trump face-off
Posted on October 21, 2016
PHILIPPINE shares ended flat yesterday after investors took profit from the previous days’ gains with the final US presidential debate weighing on sentiment.
The Philippine Stock Exchange index closed 0.11% or 8.25 points lower to close at 7,713.32. The broader all-shares index, meanwhile, added .05% or 2.41 points to close at 4,536.90.
Five blue chip players dropped yesterday, with Ayala Corp. falling steepest among them with 1.27% of losses. PLDT lost 0.60%.
Investors stayed on the sidelines while scrutinizing results of the US presidential debate, Regina Capital Development Corp. Managing Director Luis A. Limlingan said, pointing to the value turnover which contracted to P6.94 billion after 2.06 billion shares changed hands from P12.16 billion on Wednesday.
“Investors appear to be pricing in a Clinton victory. While both candidates seem to have equally done well in the final debate, the market likes Clinton’s widening lead over Trump in the surveys,” he said in a phone interview.
A win for Democrat Hillary Clinton next month — now predicted clearly by polls — is also seen as opening the way for a rise in interest rates which a number of US Federal Reserve policy makers have all but promised for December.
Victor F. Felix, analyst at AB Capital Securities, Inc., said the market moved at a risk-off mode in the morning, watching the last leg of the presidential debate.
Moreover, he attributed the flat performance of the market to profit taking, which he considered as a “positive sign” after a bout of net foreign selling.
“I think it’s just a bit of profit taking wherein the market cooled off a bit because we significantly made jumps in the past two days. The profit taking was mainly done by local firms because we have net foreign buying of 480 million,” he said in a phone interview.
“That to me is a bit of a positive sign. It suggests that foreign investors are coming back into the market.”
Reuters reported that crude oil futures boosted prices to a 15-month high on Wednesday after the US government reported a surprisingly large drop in inventories for six weeks out of seven.
“After experiencing one of the biggest climbs ever in the last two days (+4.9%), the PSEi remained flat as other emerging-market stocks caught up as a rally in crude oil underpinned demand for higher-yielding assets,” said Mr. Limlingan.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.2%. Japan’s Nikkei extended gains to 1.1% as the yen weakened.
Holding firms were down 0.51% or 39.82 points to close at 7,761.29. Mining and oil stocks lost 0.13% or 15.89 points to close at 11,516.04.
Financials climbed 0.38% or 7.17 points to close at 1,852.09; industrial stocks moved up by 0.27% or 32.27 points to 11,877.42; services added 0.12% or 1.87 points to 1,475.69, while property saw a 0.22% rise or 7.71 points to end yesterday’s session at 3,434.92.
Five stocks gained for every four that fell, while 47 remained flat. — R. S. 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