Common Sense Trading - A Blue Jeans Approach to Philippine Stock Market Trading

The market closed today (May 23, 2008) higher than yesterday's close by 10.70 points and settled at 2,849.28. I don't think this is very significant as the value turnover for the day didn't even scratch Php2 Billion. My guess is that investor sentiment improved from yesterday as we saw U.S. markets snapping their losing streak. The composite indeces of the Dow, Nasdaq and S&P all managed to close in the green. I have a feeling we'll track those indeces again tomorrow.

The calamities in China and Myanmar/Burma make my disappointments over our stock market seem so insignificant. The death toll in China has surpassed 55,000 according to CNN . So sad. We've seen a second day of correction. The prevailing opinion from a perusal of our major dailies and websites are that we're tracking losses in Wall Street. CNBC notes that "More rate cuts are still possible but unlikely" Though the market dropped over thirty points, the value turnover was not enough to cause me much worry as it was only around Php2.14B. I'm still sticking to my gut feel that this market is getting ready to push up hard and fast.

Today's close (May 20, 2008) was in the green with the PSEi at 2896.15, +18.69 from yesterday. Value turnover was unexciting at Php2.4B. Surprise for those expecting correction While 18.69 points is not a large increase, it comes as a surprise to me. This week's outlook was for more correction. With inflation taking the limelight, that prediction seemed sound. On top of that, we just saw a rally of about eight days. What comes up, must come down. Surprise, surprise... Yesterday's drop of only 2.49 points to 2,877.46 was also rather pleasant as it was quite negligible for the composite index at only -.1% Less worrisome numbers With the market making gains, even though rather weak for my taste, I'm getting more positive about where this market may be going. My gut feel is that it's getting ready to push up hard and fast.