Top Ten Smart Money Moves – September 23, 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 September 23, 2016 Data)
Total Traded Value – PhP 7.610 Billion – Low
Market Breadth and Sentiment indicated by Advances Declines Ratio – (Ideal is 2:1 to be considered Bullish or Bearish) 90 Advances vs. 89 Declines = 1.01:1 Neutral
Total Foreign Buying – PhP 4.290 Billion
Total Foreign Selling – (PhP 4.560) Billion
Net Foreign Buying (Selling) (PhP 0.270) Billion – 22nd 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: ==================================================
Stocks seen to trade between 7,500 and 7,900
By Keith Richard D. Mariano, Reporter
Posted on September 26, 2016
LOCAL STOCKS may resume their recovery this week, with the benchmark likely marching toward the 7,800 level, as some fund managers embark on window dressing, and investors position ahead of the earnings season.
The Philippine Stock Exchange index (PSEi) may move within the 7,500-7,900 range, according to analysts, after monetary policies in Japan and the United States buoyed investor sentiment toward local equities last week.
“We expect the Philippine stock market to trade within a range of 7,500 to 7,900 due to lack of local catalyst,” BPI Asset Management noted in a weekly review.
As the third quarter draws to a close, however, 2TradeAsia.com expects window dressing to ensue, with some fund managers taking advantage of depressed prices and scouting for stocks likely to outperform in the fourth quarter.
“Run-ups may also come from spilled over positive sentiment from the latest Federal Reserve decision and reduced possibility of an interest rate hike in its next meeting in November due to US elections,” it added.
The online brokerage, however, noted the market will have to watch out for the meeting of the Organization of the Petroleum Exporting Countries (OPEC) on the sidelines of the International Energy Forum in Algeria on Sept. 26-28.
The bellwether settled at 7,723.60 on Friday, netting 169.84 points or 2.25% throughout last week. It stayed in the green for four consecutive sessions until investors took profits.
“Investors cashed in gains due to rising uncertainties over the Duterte administration’s reform agenda [in addition to] the possible slowdown of the global economy,” said Joylin F. Telagen, equity analyst at IB Gimenez Securities, Inc.
“But despite these uncertainties, we hope that the PSEi will consolidate at 7,800 with upward bias to 7,900 as investors might possibly rebalance their position ahead of [third-quarter] earnings and possible window dressing at the end of the week.”
Luis A. Limlingan, managing director at Regina Capital Development Corp., expects a mixed performance from the main index this week.
“[I]t will try to establish a support base at 7,700. This is an important level to watch because a successful hold will create enough demand to sponsor further recovery towards 7,800-7,850 resistance targets.”
The trend, however, would supposedly turn out bearish and the PSEi could retest the 130-day moving average of 7,600 if the main index plunged from the 7,700 level.
“Though lower week on week, intraday volatility is still a concern as we are to expect moderate to sharp price movements — fortunately, the mood of the current price reaction is more on recovery rather than corrective,” Mr. Limlingan said.
Foreign investors have been dumping Philippine equities for 21 consecutive sessions, surpassing the selling streaks recorded during the global financial crisis between 2007 and 2009. The sell-off, however, slowed down to P1.91 billion last week from P4.67 billion.
“This reflected reaffirmation of credit rating agency, S&P Global Ratings, on its assessment of the country’s long-term credit rating of ‘BBB’ with ‘stable’ outlook. The affirmation shows our economy’s resiliency in global external shocks,” 2TradeAsia.com said.
The global debt watcher, however, flagged that “the predictability of policy making in the Republic of the Philippines has diminished somewhat under the new presidency.”
THANK YOU VERY MUCH FOR YOUR SUPPORT! WE MADE IT TO THE TOP FIVE
Voting for the Angat Pilipinas Coalition for Financial Literacy Polls ended last night and we are glad to inform you that with your support, we were able to make it to the Top 5 in our Category – “Influential Author or the Year.” Apart from the online polls, there will still be judging of the Top 5 nominees for each category with most number of votes. The judges will come from three different independent institutions. We would like to thank you for your Support. Win or Lose, we did our Best and that is the most important thing. More than the votes we received a lot of encouragement and these keep us going in our advocacy: Responsible Trading. Again, from me and The Responsible Trader_com: Maraming salamat po sa inyong walang sawang pagtangkilik at umaasa kami ng mas maganda pang samahan ngayon, bukas at magpakailanman.
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