Posted by – June 13, 2013
The PSE Index – 13 June 2013
June 13, 2013 is a historic day in the Philippine stock market! This is probably the biggest one-day-plunge for the PSE index since October 2008. Today, it closed at 6114.08, shedding 442.57 points (–6.75%). If my charting software serves me right, today’s close touched the 200 day Moving Average, the index should bounce from here, if not, the next line of defense is at 5,900.
This crash is worth noting since it only happens once in a decade… or is it?
Below is the monthly historical chart of the PSE index.
Asian Markets – 13 June 2013
Asian markets tumbled, Japan’s Nikkei225 plunged at a record 12,445.38, -843.94 (-6.35%). Hong Kong’s Hang Seng Index shed 467.62 points (-2.19%) closing at 467.62 while Singapore’s Straits Times Index losing 22.79 points (-0.72%) 3,130.69.
More details on Japan’s stock market crash on Bloomberg.
Graph/cartoon courtesy of 123RF.com
After the euphoria, the rah-rah and the booyah, the traders and investors alike have been silenced by the steep, unforgiving and nail-biting technical correction of the PSE Index.
The last line of defense that I can foresee is at 6310. It was like a daydream, we greeted the new year with 5860.99, reached the peak at 7,403.65 on May 15th, a 26-percent gain in just 5 months. But look at the index now, with one eye closed, down 11.4% from previous high in just a matter of 15 days!
I will not talk about the Fundamentals of the Philippine economy as everyone knows, we are doing “just fine” as compared to other countries. I’m just expressing what I feel during these times. Some are asking, Will the index continue to go down? Is now the time to buy? Is it time to cut loses? Will I lose my shirt? I will also not recommend to buy nor to sell as there are already too many gurus out there. You may have noticed the plethora of Philippine stock market blogs that have popped out for the past few months. Well, I think this saying is true… “Everyone is a genius in a bull market.”
What I’d tell you is this, you should already know the risks when you decided to enter the stock market. You should accept the consequences if the market doesn’t go in your way and you alone is to blame if you lose your shirt! The only way to gain knowledge on this game is to make mistakes and to learn from these mistakes. If you can’t accept loses then you should not be investing your time and money here.
To know the companies that are included on the PSE Index, please go to this link.
You may also want to visit my guide on How to Invest on the Philippine Stock Market: http://www.pnoytrader.com/2010/07/invest-in-the-philippine-stock-market/
Photo from: 123RF.com
Posted by – October 29, 2012
Here’s my outlook on the PSE Index for the next trading days. Based from the chart below, I’m seeing the support level at 5,349 and resistance at 5,445. A good closing of the PSEi last Thursday as it created a green candle, I’m expecting it to be retesting the previous 5,400 barrier for the next few days since the RSI below has been recovering from a downtrend, my personal opinion of course.
Congratulations who successfully day traded $VITArich Corp, which closed at a ceiling price (+50%). With these 3rd liner stocks, you should just be day trading them since all the stocks that surge upward has the possibility of sliding downward in a much faster momentum. You don’t want to let your paper profits to be gone in an instant don’t you?
I’m now leaving you with a quote from T. Harv Eker, the best-selling author of Secrets of the Millionaire Mind.
“Rich people believe ‘I create my life’. Poor people believe ‘Life happens to me”.