Top Ten Smart Money Moves – August 7, 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 7, 2020 Data)
Total Traded Value – PhP 10.923 Billion – Medium
Advances Declines – (Ideal is 2:1) 113 Advances vs. 82 Declines = 1.38:1 Neutral
Total Foreign Buying PhP 1.982 Billion
Total Foreign Selling – (PhP 8.760) Billion
Net Foreign Buying (Selling) – (PhP 6.778) Billion – first 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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Stocks to drop as market awaits gov’t plan on virus
August 10, 2020 | 12:01 am
By Denise A. Valdez, Senior Reporter
LOCAL SHARES are expected to move sideways this week with a downward bias as investors continue to look for indicators that would determine the fate of businesses after the lockdown.
The benchmark Philippine Stock Exchange index (PSEi) dropped 56.56 points or 0.95% to close at 5,846.02 on Friday.
On a weekly basis, the PSEi was down 82.43 points or 1.39% to extend its losses for the fifth consecutive week.
Value turnover increased 66% to an average of P7.03 billion, but net foreign selling grew more than three times to an average of P1.79 billion.
“Sessions were generally volatile during the week, as markets reacted to the second quarter economic contraction and July inflation,” online brokerage 2TradeAsia.com said in a market note.
The government reported last week that the economy shrank 16.5% in the second quarter, marking its deepest decline on record and officially plunging the Philippines into recession.
The decline was worse than most had anticipated and concerns continue to mount as Metro Manila and key areas have been put back on tighter quarantine measures for two weeks until Aug. 18.
“Moves to raise hospital capacity and isolation zones would help appease concerns on the local economy’s ability to handle (the pandemic),” 2TradeAsia.com said.
It noted the reimposition of a stricter lockdown is a response to the growing coronavirus cases, which can only be subdued by “strategic plans on health infrastructure support…while waiting for vaccines.”
The Philippines now leads Southeast Asia on the highest number of coronavirus infections at 126,885 as of Saturday. The bulk of new cases come from Metro Manila, or 2,669 out of the 4,226 new cases.
Aside from coronavirus numbers and macroeconomic data, companies have also been releasing their second-quarter earnings reports in the past weeks. But 2TradeAsia.com said investors are rather looking at capital expenditure (capex) plans.
“Preliminary indications on sequel months’ capex initiative remain hazy for most, and remains attuned with the lifting of quarantine measures. What is certain, however, is that resumption of aggressive capex plans are seen in 2021-2022,” it said.
All these elements, along with global events such as the ongoing tension between the United States and China, may continue weighing on investor sentiment this week, Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said.
“[W]e are currently in a recession and getting out of this is something we don’t see in the near future… The market’s trading range for (the coming) week is seen to be from 5,700 to 6,100,” he said in a text message.
2TradeAsia.com is putting the market’s range within 5,500 to 6,000 this week.
Source: https://www.bworldonline.com/stocks-to-drop-as-market-awaits-govt-plan-on-virus/
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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.