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

I woke up while the PSEi was in the middle of a rally. +80 something. I checked foreign activity and yesterday they were net sellers for the seventh straight day. I'm curious now about today. Is this big rally propelled by local sentiment? My guess is that the bottom hunter's have placed their bets. Plus its a good time to position before corporate earnings reports come out. So based on that and on this year's performance for the PSEi, I'd remain pessimistic. I think this rally could very well backfire and snowball a downtrend-if it doesn't last. And if it does last, at best it may take us into a sideways trend. I had been hunting for bargains lately, but at current levels I'm more inclined to watch. I put up the "sale" sign when it was below 2500 now I'm putting it away. I wouldn't be surprised though if the PSEi takes a few trips back down that level within the next few months. I'll be saving up for that.

Every analyst seems to have his own "resistance" and "support" levels. I don't bother making my own. After all, this is just my hobby and I like to position long. What I do is I just ride off of other people's analysis. There are many people out there who love crunching the numbers and don't mind publishing their thoughts. My favorite is still tsupitero.com. He's usually spot on. The inquirer quoted citisec saying that resistance is at 2630 and that we're looking to see consolidation this week. Tsupitero placed his resistance at 2600. The market closed today at 2599.99. How ironic.