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

The market is only less than twenty points shy of its resistance at 2600. Tomorrow will be interesting. Will it break above and finally break the downtrend and possibly climb to 2900? Or will the PSEi disappoint all of us again and accelerate the downtrend? Short trends cause too much excitement and anxiety for my taste so I won't bother with making an intelligent guess. Right now, I'm just enjoying the show and looking for good entry points for a long play.

No one is looking but the "sale" sign is all over the stock market. The saying goes: "Buy cheap, sell high." I think they're cheap now. I want to buy and here's why: First, Total trades on the PSE have been staying below the Php2 billion mark. In 07 it often lingered around Php5 billion. It looks people aren't interested in buying stocks right now. Too frightening a time I guess. Second, Just a few weeks ago, the public ate up the government bonds that were offered and bidding was closed ahead of schedule because of the massive pick up. What does that tell me? People are scrambling for a safer place to put money. This leads to a generally very low demand for large volumes of already discounted stocks. Sounds like a good time to buy. The caveat here though is that the trend is downward and nobody really knows when it will turn. So prudence will lead me to buy in trickles and with the long-term in mind. No aggressive moves for now.