Top Ten Smart Money Moves – August 5, 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 5, 2020 Data)
Total Traded Value – PhP 5.384 Billion – Low
Advances Declines – (Ideal is 2:1) 128 Advances vs. 75 Declines = 1.71:1 Neutral
Total Foreign Buying PhP 2.546 Billion
Total Foreign Selling – (PhP 2.804) Billion
Net Foreign Buying (Selling) – (PhP 0.2588) Billion – 7th 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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PHL shares rally ahead of 2nd quarter GDP report
August 5, 2020 | 9:00 pm
PHILIPPINE SHARES extended their rally on Wednesday as investors decided to buy before the government released the second-quarter gross domestic product (GDP) report.
The benchmark Philippine Stock Exchange index (PSEi) increased 58.08 points or 1% to 5,833.58 on Wednesday. The broader all shares index added 29.32 points or 0.85% to 3,456.29.
“Local shares closed higher as investors bought ahead of the second-quarter GDP release,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a mobile message.
The Philippine Statistics Authority is scheduled to release the second-quarter GDP data on Thursday, which majority are expecting to show the deepest economic contraction as most of the country was under strict lockdown in the period.
A BusinessWorld poll of 17 economists showed a median GDP contraction of 11%, deeper than the downward-revised 0.7% recorded in the first quarter.
While others chose to buy ahead of the data report, some investors started selling their shares at the last minute on Wednesday, AAA Southeast Equities, Inc. Research Head Christopher John Mangun said in an e-mail.
“We saw selling pressure pick up towards the close as investors remain cautious ahead of the second-quarter GDP report,” he said.
The robust activity at the earlier part of trading can be linked to confidence in business resilience despite the stricter quarantine measures, Mr. Mangun said.
“Most businesses remain operational amid the lockdown. Public transport has been limited to inhibit non-essential travel, but essential goods and businesses remain functional,” Mr. Mangun said.
Metro Manila and key urban provinces are under strict quarantine measures again for two weeks to help stem rising coronavirus infections.
All sectoral indices ended Wednesday’s session higher than the previous day’s levels: mining and oil by 185.73 points or 3.31% to 5,786.63; financials by 28.87 points or 2.6% to 1,138.67; property by 34.52 points or 1.23% to 2,827.19; services by 15.53 points or 1.13% to 1,384.50; industrials by 60.21 points or 0.8% to 7,534.15; and holding firms by 8.66 points or 0.14% to 5,980.76.
Value turnover slid to P5.38 billion with 2.04 billion issues switching hands from Tuesday’s P5.74 billion, which Philstocks Financial, Inc. Research Associate Claire T. Alviar said is an indication the current rally may be unsustainable.
Advancers outpaced decliners, 128 against 75, while 27 names ended unchanged.
Net foreign selling dropped to P257.50 million on Wednesday from the P837.17 million logged on Tuesday.
Meanwhile, Wall Street ended higher after a choppy session on Tuesday, lifted by Apple and energy stocks but limited by declines in AIG and Microsoft while investors awaited more US government stimulus to fight the economic fallout from the COVID-19 pandemic. — Denise A. Valdez
Source: https://www.bworldonline.com/phl-shares-rally-ahead-of-2nd-quarter-gdp-report/
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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.