Top Ten Smart Money Moves – April 8, 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 April 8, 2020 Data)
Total Traded Value – PhP 5.954 Billion – Low
Advances Declines – (Ideal is 2:1) 88 Advances vs. 102 Declines = 1.16:1 Neutral
Total Foreign Buying PhP 2.409 Billion
Total Foreign Selling – (PhP 4.085) Billion
Net Foreign Buying (Selling) – (PhP1.676) Billion – 18th 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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Local stocks to decline on profit taking, volatility
April 13, 2020 | 12:01 am
By Denise A. Valdez
Reporter
PHILIPPINE SHARES are seen to decline this week with profit takers taking center stage and volatility still reigning due to the ongoing coronavirus disease 2019 (COVID-19) pandemic.
The benchmark Philippine Stock Exchange index (PSEi) dropped 139.18 points or 2.46% to 5,510.83 on Wednesday. The market was closed on Thursday and Friday in observance of the holy week.
Last week’s shortened trading resulted in a 3% climb for the PSEi on a weekly basis. This also marked the market’s third straight week of keeping its growth trajectory.
Value turnover rose 7% to an average of P5.72 billion, while foreign outflows grew 19% to an average of P834.89 million.
“Local equities advanced during the three-day trading week, given the slowdown in new coronavirus cases in industrialized economies,” online trader 2TradeAsia.com said in a market note.
It added the slight easing in headline inflation in March to 2.5% from February’s 2.6% also drove the market’s increase.
But for this week, local shares may start seeing declines and the main index may fall to the 5,000 level or lower.
“After three weeks of consecutive gains for the PSEi, we are expecting some profit-taking (this) week which could send it back to 5,000 which is a stronger support level. It may even go lower and fill the trading gap between 4,800 and 5,000 on the daily chart,” AAA Southeast Equities, Inc. Research Head Christopher John Mangun said in a market note over the weekend.
But should the market see strong buying, Mr. Mangun said this would likely be due to investors looking at the situation as a “once in a lifetime opportunity to buy equities at such depressed prices.”
“Some companies have already reduced capital expenditure for this year and are not expecting to turn a profit this year… On the other hand, some investors are optimistic that the temporary lockdown has given the government enough time to prepare… Either way, there is a strong case that the PSEi will stay above the 4,000 support level in the coming weeks…,” he said.
For 2TradeAsia.com, investors will also be keeping watch of virtual stockholders’ meetings and what companies would have to say about the impact of COVID-19 on their businesses.
It noted it is important to identify if the effects of the outbreak are one-off and may be reversed come second half of the year. “These components would help validate valuation angles, more on the extent of growth prospects post-COVID-19,” it said. “Expect volatility to prevail, with emotions still anchored in fending off the coronavirus pandemic.”
2TradeAsia.com is putting immediate support for the PSEi within 5,300-5,400, and resistance within 5,800-6,000. AAA Southeast Equities’ Mr. Mangun is pegging support within 4,700-5,000, and resistance within 5,500-5,800.
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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.