Top Ten Smart Money Moves – March 26, 2020
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.
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As promised in my last post, Back from the Hack, we are resuming all our activities both in our website and Facebook starting August 1, 2019.
This section of our website has been running for the past five years. Perhaps you are asking, why Top Ten Smart Money Moves? This is what I have written in my new book: “Swing Trading with TRT – A Definitive Guide for Swing Trading the Philippine Stock Market.”
“SMART MONEY
The PSE achieved a milestone by the end of the year 2018 when they reported that the number of stock market accounts broke past the one million mark as a result of the substantial increase in online accounts.
Retail investors owned most of the stock market accounts, representing 97.5% of the total accounts while the remaining 2.5% is held by the institutional investors also considered as smart money.
While we, the retail traders, are big in number, we are small in terms of influence in the stock market because more than 50% of the Total Traded Value Daily is accounted for the institutional investors whose transactions are focused mostly on a handful of their selected stocks.
In our Website, we have a regular feature “Top Ten Smart Money Moves” where we monitor the Top Ten stocks being bought and sold by the smart money.
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Trading Notes for Today – (Based on March 26, 2020 Data)
Total Traded Value – PhP 7.666 Billion – Low
Advances Declines – (Ideal is 2:1) 151 Advances vs. 48 Declines = 3.15:1 Bullish
Total Foreign Buying PhP 3.864 Billion
Total Foreign Selling – (PhP 4.544) Billion
Net Foreign Buying (Selling) – (PhP0.680) Billion – 9th day of Net Foreign Selling after a day of Net Foreign Buying
Data from the Philippine Stock Exchange
Screenshot courtesy of PSE.com.ph
PSE HEAT MAP
Screenshot courtesy of PSEGET
Top Ten Foreign Buying and Selling
Top Ten in Total Traded Value
Top Ten Gainers and Losers
From now on, I will just quote the related article from Business World so that we will have everything in one piece:
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Index posts biggest one-day rise in over a decade
March 26, 2020 | 9:00 pm
By Denise A. Valdez
Reporter
THE PHILIPPINE Stock Exchange index (PSEi) saw its biggest one-day jump in almost 13 years yesterday, driven by improved investor confidence over the government’s efforts to support the economy amid the coronavirus disease 2019 (COVID-19) pandemic.
The PSEi surged 373.82 points or 7.43% to 5,401.58 on Thursday, as the broader all shares index increased 185.69 points or 6.05% to 3,250.82.
This is the largest percentage climb the main index has recorded in a single day since Aug. 21, 2007 when it rose 9.82%.
“The market was up by almost 8%, as investors appreciated the government’s effort to combat the negative impact of COVID-19 pandemic in the economy,” Philstocks Financial, Inc. Research Associate Claire T. Alviar said via text.
She said among the drivers of optimism yesterday was the government’s plan to borrow up to $2 billion from multilateral lenders to mitigate the impact of the pandemic.
Another is the central bank’s commitment to purchase P300 billion worth of government securities from the Bureau of the Treasury, on top of its 50-basis-point (bp) cut in key rates last week and the 200-bp reserve requirement ratio reduction for big banks to 12% starting March 30.
“We think that these were the narratives that investors are looking into right now, and they were finding the battered stocks to bargain hunt and the stocks to benefit the most on the measures,” Ms. Alviar said.
For Regina Capital Development Corp. Head of Sales Luis A. Limlingan, the rally in the local bourse is also an effect of the approval of a massive economic stimulus bill in the United States.
The US Senate passed a $2-trillion emergency relief bill on Wednesday to support affected sectors by the COVID-19 pandemic. The bill will now be subjected to a vote by the House of Representatives on Friday.
At the PSE, all sectoral indices closed higher yesterday: property by 248.95 points or 9.33% to 2,916.21; financials by 96.33 points or 8.31% to 1,255.13; services by 73.97 points or 6.91% to 1,143; holding firms by 288.13 points or 5.80% to 5,255.89; industrials by 246.10 points or 4.10% to 6,245.73; and mining and oil by 130.58 points or 3.21% to 4,188.02.
Value turnover was trimmed to P7.67 billion with 590.86 million issues switching hands from Wednesday’s P8.30 billion with 929.07 million issues.
Advancers stood at 151, decliners at 48 and unchanged names at 26.
Foreigners remained sellers yesterday, but net outflows were trimmed to P680.11 million on Thursday from P1.67 billion on Wednesday.
“We think that sell on rally is still the best strategy for now given the increasing number of COVID-19 cases in the Philippines, and despite today’s market gain, foreigners were sellers by P680 million,” Philstocks Financial’s Ms. Alviar said on Thursday.
Source: https://www.bworldonline.com/psei-returns-to-5000-level-on-bsps-rrr-cut/
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In line with our VISION, A RESPONSIBLE TRADER IN EVERY FILIPINOS HOME, 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. We have successfully launched “Swing Trading with TRT – a Definitive Guide for Swing Trading the Philippine Stock Market” last September 2, 2019. This book is the second in our Responsible Trader Education Series.
You can download Chapter 1 and see the Table of Contents here: https://drive.google.com/file/d/1NZEABnQMiQ_zenEMs0lPFWweX4WBxBHg/view?usp=sharing
The first book, “The Responsible Trader – a Thinking Person’s Guide for Trading the Philippine Stock Market” provided all the basic knowledge that a trader needs to know in order to trade the Philippine Stock Market effectively and efficiently. The first book is about the basics. This second book is about the specifics.
2. 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/. For those interested in the hard copy, please send email to: ninjatrader919@gmail.com Subject: The Responsible Trader – Hard Copy.
As requested by those abroad and those who want the book in digital form, we have produced an eBook version. For those interested please send email to: ninjatrader19@gmail.com Subject: The Responsible Trader – eBook Version.
The book can also be ordered online through our publisher, Central Book Supply. Just go to: http://central.com.ph/bookstoreplus then click Search – The Responsible Trader.
3. The Website: :http://www.theresponsibletrader.com where we publish our daily newsletter Top Ten Smart Money Moves, Stock Trading Lessons, and Inspirational Materials. (FREE)
4. The YouTube Channel: https://www.youtube.com/theresponsibletrader – where you can learn the course “Master’s Certificate in Technical Analysis” which was simplified in an easily understood manner. You can download these videos and learn them at your own convenient time. (FREE)
5. My Slideshare: http://www.slideshare.net/TheResponsibleTrader – where you can view and download copy of the Powerpoint Presentation of my TRT-POV (The Responsible Trader’s Point of View) of the videos posted in our Youtube Channel. (FREE)
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Good luck on all your TRADES today.
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 PhP 8 Billion b. Medium – Total Traded Value Php 8 Billion but not more than P15 Billion c. High – Total Traded Value more than Php 15 Billion.
Starting with August 11, 2017 data we are including the Top Ten Gainers and Losers for a more comprehensive coverage of significant stock movements during the day.