Top Ten Smart Money Moves – September 20, 2019
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 September 20, 2019 Data)
Total Traded Value – PhP 10.167 Billion – Medium
Advances Declines – (Ideal is 2:1) 94 Declines vs. 91 Advances = 1.03:1 Neutral
Total Foreign Buying PhP 7.749 Billion
Total Foreign Selling – (PhP 8.814) Billion
Net Foreign Buying (Selling) – (PhP 1.065) Billion – 4th day of Net Foreign Selling after two days 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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Shares to rebound as market awaits BSP rate cut
September 23, 2019 | 12:01 am
By Arra B. Francia
Senior Reporter
SHARES MAY bounce back in the coming days after the main index sustained losses for most of last week, with investors’ eyes trained on the Bangko Sentral ng Pilipinas’ (BSP) policy decision and the passage of the 2020 national budget.
The 30-member Philippine Stock Exchange index (PSEi) dropped 0.5% or 40.21 points to close at 7,871.11 last Friday. The main index fell 1.52% on a weekly basis as it declined for four consecutive sessions during the week.
Net foreign outflows averaged at about P350 million last week amid an average turnover of P6.24 billion.
“The next catalyst [this] week should now be the BSP’s policy decision. Consensus expects the central bank to cut by 25 basis points (bps),” Papa Securities Corp. Sales Associate Gabriel Jose F. Perez said in an e-mail.
The BSP’s Monetary Board will review policy settings anew on Thursday. Economists widely expect the central bank to reduce rates by another 25 bps this week.
So far, the central bank has trimmed rates by a total of 50 bps this year — by 25 bps each last May 9 and Aug. 8 — to a range of 3.75% to 4.75%, partially dialing back the 175-bp cumulative hikes put in place last year to arrest multi-year high inflation.
Headline inflation slowed to 1.7% in August from the 2.4% print in July and the 6.4% pace logged in August 2018. Year-to-date, inflation averaged at 3%, which is within the BSP’s 2-4% target range for 2019, albeit still above the BSP’s 2.6% forecast for the year.
Philstocks Financial, Inc. Research Associate Piper Chaucer E. Tan said investors will look at the rate cut in addition to expectations on the national budget’s progress in Congress.
“We think that investors might also consider the passage of the P4.1-trillion budget…since the passage of the bill will continue the infrastructure projects, as opposed to what happened in the first quarter of the year where we saw a huge drop in GDP (gross domestic product) as a result of the budget impasse,” Mr. Tan said via text message.
The analyst also pointed to developments abroad which may affect investor sentiment locally.
“Catalysts abroad, especially the US-China trade talks and the oil markets which disrupted global supply, can drive the market for this week.”
On the other hand, this week will also see the start of the offer period for Axelum Resources Corp.’s initial public offering. The coconut products manufacturer will offer a total of 800 million common shares at P5 each from Sept. 24 to 30, in a bid to raise P4 billion in fresh capital.
Villar-led AllHome Corp. will also finalize its offer price for its own IPO on Sept. 26. It will sell up to 1.293 billion common shares at up to P16 per share.
Philstocks’ Mr. Tan placed the PSEi’s support at 7,850, with resistance at 8,000.
Source: https://www.bworldonline.com/shares-to-rebound-as-market-awaits-bsp-rate-cut/
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In line with our VISION, A RESPONSIBLE 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.