Top Ten Smart Money Moves – October 24, 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 24, 2016 Data)
Total Traded Value – PhP 4.690 Billion – Low
Market Breadth and Sentiment indicated by Advances Declines Ratio – (Ideal is 2:1 to be considered Bullish or Bearish) 94 Declines vs. 74 Advances = 1.27:1 Neutral
Total Foreign Buying – PhP 2.642 Billion
Total Foreign Selling – (PhP 2.750) Billion
Net Foreign Buying (Selling) –(PhP 0.108 Billion) – first day of of Net Foreign Selling after 3 days 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 slips ahead of corporate earnings, US GDP
Posted on October 25, 2016
THE local stock barometer slid for a third straight session as investors assume a risk-off position amid light data on corporate earnings and ahead of preliminary US gross domestic product (GDP) results to be released this week.
The Philippine Stock Exchange index (PSEi) dropped 40.91 points or 0.53% to close at 7,609.31. Meanwhile, the broader all shares index slid 19.16 points or 0.42% to close at 4,498.95.
AB Capital Securities analyst Victor F. Felix said there was risk-off sentiment among investors amid uncertainties over upcoming events.
“It could be a continuation of profit taking. It could also be risk-off ahead of the release of corporate earning results. It could also be uncertainty with regards to the upcoming OPEC meeting,” he said in a phone interview yesterday, referring to the Organization of the Petroleum Exporting Countries (OPEC).
Reuters reported on Oct. 23 that oil prices dropped following comments from Iraq which didn’t want to participate in the production cut by OPEC. On Nov. 30, OPEC plans to decide on how much production it would reduce. Reuters said that OPEC aims to cut production OPEC plans to reduce production to a range of 32.50 million to 33.0 million barrels per day (bpd), down from 33.39 million bpd in September.
However, this may be difficult without Iraq, the second largest oil producer after Saudi Arabia.
Falah al-Amri, the head of Iraq’s State Oil Marketing Company, was quoted on Sunday as saying that they “are not going back in any way, not by OPEC not by anybody else.”
However, Mr. Felix downplayed any cause for concern since the market is still within favorable range. “We’re still holding above the key 7,500 support level. So it’s really not that bad. But in terms of catalysts, I guess strong corporate earnings from index heavyweights would be good.”
Regina Capital Development Corp. Managing Director Luis A. Limlingan shared this opinion, citing the thin volume seen when the market closed yesterday.
Value turnover fell to P4.69 billion after 716.91 million shares changed hands, from P7.04 billion on Friday.
“Volume was rather thin today, less than P5 billion. So I think everyone is in the sidelines because later in the week there will be the release of the US GDP results and earnings from companies,” Mr. Limlingan said on Monday.
All indices apart from property and industrials slid yesterday.
Property rose 15.96 points or 0.47% to close at 3,413.42, while industrials added 12.56 points or 0.11% to end Monday’s session at 11,848.06 .
On the other hand, holding firms was the biggest loser yesterday as it dropped by 1.01% or 77.97 points to 7,647.62; financials lost 0.74% or 13.64 points to close at 1,819.63; mining & oil slid 0.47% or 53.68 points to 11,371.83; and services slipped 0.28% or 4.12 points to close at 1,470.78.
Foreign investors switched to a net selling position of P108.00 million from net purchases worth P236.02 million on Friday. — 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