Top Ten Smart Money Moves – August 4, 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 August 4, 2020 Data)
Total Traded Value – PhP 5.739 Billion – Low
Advances Declines – (Ideal is 2:1) 136 Advances vs. 52 Declines = 2.62:1 Bullish
Total Foreign Buying PhP 2.217 Billion
Total Foreign Selling – (PhP 3.055) Billion
Net Foreign Buying (Selling) – (PhP 0.838) Billion – 6th 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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PSE index rebounds as investors pick up bargains
August 4, 2020 | 9:00 pm
LOCAL SHARES recovered on Tuesday as the selling pressure started subsiding and with most investors hoping companies can endure the reimposition of stricter quarantine measures.
The bellwether Philippine Stock Exchange index (PSEi) rose 59.58 points or 1.04% to close at 5,775.50 on Tuesday. The broader all shares index gained 28.51 points or 0.83% to end at 3,426.97.
“With the BSP (Bangko Sentral ng Pilipinas) chief alleviating the fears of the effects of stricter restrictions…, the market rebounded and moved up in line with most of the regional markets after heavy selling (on Monday),” Diversified Securities, Inc. Equity Trader Aniceto K. Pangan said in a text message.
Metro Manila and other urban areas are back under tighter quarantine rules for two weeks as the government accepted the request of healthcare workers for a “time out” to help stem the rise in coronavirus disease 2019 (COVID-19) cases in the country.
The COVID-19 tally reached 106,330 on Monday, with the bulk of new cases located in Metro Manila.
Most investors left the market early in the week on fears of the lockdown’s implications, but sentiment improved on Tuesday after BSP Governor Benjamin E. Diokno said the quarantine has limited impact on the economy.
Optimism can also be linked to the improvement in manufacturing output overseas, Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a mobile message.
“Investors became bargain hunters in the PSEi following the huge sell-off (on Monday) as many embrace for big week for corporate earnings, boosted by positive manufacturing data out of the euro zone,” he said.
Manufacturing activity across the euro zone expanded for the first time since early 2019 last month as demand rebounded after more easing of the restrictions imposed to quell the spread of the new coronavirus, a survey showed on Monday, Reuters reported.
IHS Markit’s final Manufacturing Purchasing Managers’ Index bounced to 51.8 in July from June’s 47.4 — its first time above the 50 mark that separates growth from contraction since January 2019.
Back home, all sectoral indices ended Tuesday’s session with gains. Mining and oil accelerated 216.99 points or 4.03% to 5,600.90; industrials added 124.12 points or 1.68% to 7,473.94; services improved 19.83 points or 1.47% to 1,368.97; financials grew 13.24 points or 1.2% to 1,109.80; property improved 28.66 points or 1.03% to 2,792.67; and holding firms climbed 33.63 points or 0.56% to 5,972.10.
Some 1.59 issues valued at P5.74 billion switched hands on Tuesday, down from Monday’s 1.63 billion issues worth P6.59 billion.
Advancers bested decliners, 136 against 52, while 46 names ended unchanged.
Net outflows were trimmed to P837.17 million from P1.64 billion on Monday but foreign investors remained sellers for the sixth straight session. — Denise A. Valdez
Source: https://www.bworldonline.com/pse-index-rebounds-as-investors-pick-up-bargains-2/
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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.