Warning! Bullish Run May Be Over

In Order of Appearance:

I can't seem to upload pictures, but some of these stocks have already reached their downtrend "peak" or their lower highs. There is a likelihood that these stocks will go down tomorrow. Hope people were able to day-trade or short-term trade these stocks.

1. Belle Corporation - barely reaching peak (P4.90 for me); closed at 4.87 today.
2. First Gen Corporation - reached peak at 14.10
3. Megaworld Corporation - closed at 2.03 and made a hanging man pattern
4. Jollibee Foods Corporation - possibly reached peak at P85 (might still go up tomorrow, but be cautious)
5. Robinsons Land Corporation - reached peak at P12
*Note, the Philippine Stock Index has also reached a potential downtrend peak.

These are only a few stocks. There are more that show the same pattern, but have not yet peaked on their downtrend. Will upload images as soon as blogspot server is fixed.

JFC, Bee Happy!

JFC, seems to be bottoming out and building support at the P83 level. I think it's safe to buy now, and I could see a bullish cup in the formation. When you look at its monthly chart, it's still in an uptrend. Below is an image of the daily chart. MACD looks bullish, RSI looks okay. This might be another stock that can do okay today.

ALI, Float Like a Butterfly, Don't Sting Like a Bee

My stock review tonight would be Ayala Land Inc. (ALI). Here are some reasons why I think ALI can float, take note the word is float not soar nor fly, like a butterfly and hopefully not sting like a bee. Let me breakdown the first chart:

First: Row: Moving Average Convergence-Divergence (MACD)
It appears that the faster moving average (red line) is about to cross the slower moving average (blue line). If the red line crosses-over the blue line, it means a buy signal for this stock. 

Second Row: Relative Strength Index (RSI) 
The RSI is forming higher lows while the prices on the charts are forming lower lows. This looks like a positive divergence to me, which is a bullish sign.

Third Row: Chart Pattern
Prices are building support at P14.84-P15, and last price is about to intersect with the 15-day moving average (red line). It can mean that the stock is starting to bottom out (safe to buy). Once prices move up and maintain above the 15-day moving average (red line), the ALI can do a short-term bull rally. 

Fourth & Fifth Row: %D Stochastic & %K Stochastic respectively
%K stochastic is above %D stochastic, which can mean bullishness. %K is at 32.0755, still leaning towards oversold conditions. 

The second chart shows the intra-day chart of ALI (3 min. chart). When you see the daily chart above, it looks like the stock is in a downtrend. However, the 3 min. chart shows that ALI is in an uptrend today. Perhaps tomorrow, this uptrend can still continue. 

The only thing negative that I see is that most of the foreign brokers, save Macquarie, are on the bear's side -- at least today. Philippine Equity Partners (PEP) is the top buyer today and the prior week.

CAUTION: Plunge to 4400

The PSEi was absurd yet again. For the past two days, it went up then force closed at the very last minute. Thank you DBP-Daiwa for being the culprit on both days. Nevertheless, there are opportunities in the market that we can perhaps buy already. On my watch are RLC, NIKL, and LPZ. This time, I used harmonics to technically analyze these stocks. Among the three, NIKL can be a stock to buy because its stochastics is already turning (I would take the opportunity to sell upon hitting its immediate resistance since its in a downtrend). For RLC, if it goes down tomorrow, then I'll be waiting at 11. If it goes lower than 11, then I'll wait for a capitulation (when a stock plummets, then bounces back up in a day; thus, forming a hammer/hanging man pattern). If it goes really really off-the-charts-low, then I won't buy. 

CASH is king, and we're in a sideways market at best. Be careful, we might actually hit 4400 again.  

 

Tug-of-War between the Bulls and the Bears

The PSEi is definitely acting weird. When you look at the charts of the stocks for the past two months, you will either see a ranging pattern or a downtrending pattern. However, if you look closely, some stocks had been going down on small doses only on each day for the past few weeks. For example, take a look at the each black candlestick of AT and FGEN, and you will notice that their bodies are small, which means that the bulls are fighting hard to gain better ground. When you try drawing a trendline on stocks like these, you will either have a downtrend that has a narrow spread or you will be forced to consider the pattern to be ranging. What else I have noticed is that some stocks have been easing out and are closing at previous lows. This can be a good sign and means that stocks are building support at their current levels. Just take a look at FLI, MEG, and CEB, you can see that they are building support roughly at 1.18, 1.92, and 82.5 respectively. I guess what I'm trying to say is that our market can still rally for the coming days, but it would be safe to say that our market is a ranging market. Our economy is still healthy. In fact, when I went to a monthly broker's meeting, reports say that there is still a lot of room for growth in our economy. It's just not as cataclystic as the growth we experienced last year. 

PSEi - Triple Top or Triple Bottom?

The past few days was a horror. We were not spared by the sell-off of the DJIA (Dow Jones Industrial Average) for the past week. People say they see a triple top in the PSEi. This could only mean a bearish move about to happen soon in the market. However, there is a silver lining in the dark clouds looming over our local bourse. What we see as a triple top can as well be a triple bottom -- in formation. I just hope that it is the latter. If not, then I expect a breakdown going towards my perceived second level of retracement. I am just crossing my fingers that tomorrow or the day after tomorrow, we would rebound and slowly head North-East. For now, CASH would the best stock. If you're gutsy, then PWR can be a viable option. 

*PD: I have PWR. I am not hyping. Trade on your own. 

What could be a triple top can also be a triple bottom...

LAND and PWR, basuras or necessities of Man?

Last week, I put my money on PWR, a basura stock. Let me tell you that it was one helluva ride. I have never felt so ecstatic before at the time I was trading it nor so euphoric afterwards. Now I understand why people ask for tips on which basura stock they should trade. This week, I would like to experience the rollercoaster ride one more time -- with LAND. I've seen both bidder and seller side a while ago, and it reminded me of PWR. Plus, the volume traded today was huuuge unlike its previous volumes before. If my instinct is correct, then LAND can soar to greater heights tomorrow. I just hope I can do rounds on the rollercoaster ride. If not, then it's crash and burn for me.

Foreign Investors

I would just like to post something different today. I'm not hyping, but I think this article poses as a good news to our country. As you all know, the U.S. economy is weakening day by day. To say their economy is catastrophic can even be an understatement.

I believe that it is time for Asia to rise. I think these foreign investors will help boost our economy, and it can also have a lot of implications about our ethnicity as Filipinos. With a better economy, I believe more and more people will embrace and be proud of being Filipino. With China leading the Asian economy, I think we can see more and more people shifting and adjusting their perspective about Asia.

To me, this article serves an inspiration for me to do more. I think I don't even want to rest. I want to be in the forefront of all this history in the making. This is also an opportunity for me to reach my dreams. Who knows, maybe one day I may really achieve it.  

Kindly check the news below:

http://warrenbuffettnews.org/1745/buffett-firm-eyes-meralco-partnership-manila-bulletin/