Will this rally last for the Philippine Stock Market?

Last week, I could barely look at the PSEi. Most of my positions were entered while the market was around the 3500 level. I think I saw it fall to as low as 2900+. It managed to close the week at 3237.41 at about the four billion peso value mark. It was a good ending i think. But the question on my mind, and I'm guessing everyone else's question as well is "how long will it last?"

According to Miko Sayo at tsupitero.com as of January 21, 2008, any rally up to 3350 would be easy, but a reversal of the short-term downtrend will not be certain unless we see the market climb above the 3500 level in a convincing fashion.

I cannot help but agree with that for the reason that he crunches numbers with sophisticated methods of technical analysis to say so. But not just that, it really does make sense given the surrounding circumstances.

My favorite online trading company's advice (citiseconline.com) seems to be as vague as ever. Hehe. Don't misunderstand me, their advice is sound. It just sounds vague to a guy like me. The short of it is that they seem to be saying, don't act like this rally is surely to last.

So for me, I'm sticking to my decision on staying long on all my positions which are mostly in mining and energy anyway. I'm a newbie at trading so I'd rather err on the side of caution. After all, the market is fickle, sometimes its up, sometimes its down. The next time its up, I'll be ready to sell. :)

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