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

Generally, Yes , but not for the faint hearted and impatient. It makes for a good medium to long-term strategy if its well thought out and researched. Note that there's a huge caveat. Two main points. 1) Don't dare to do so, unless you are well informed. 2) Be ready to wait. This strategy is a double edged sword Discussion: 1) Re: being well informed a) the creation of bargains: As long as you're sure about the stock's value, then I think its a good time to buy when foreign buying is low. Foreign buying adds to the competition among buyers and pushes prices up. b) computing the value: Without foreign buying we may find more bargains. But the tricky part is knowing the value of the companies. That may take some serious pencil pushing and number crunching. Luckily there's plenty of people doing that out there already, like brokerages and the business media. c) the goal: We'll have to sift through the stocks to see which ones are "cheap" but have good ...

Each a member of a Philippine sunrise industry, one leaps forward while the other keeps losing ground. The numbers that tell the stories of Semirara Mining Corporation and the BPO firm Paxys are total opposites. SCC's gain over 260% The first time I took notice of this stock was when it was trading for about Php19-20/sh. Seeing as SCC just recently broke Php58/sh, for a 52 week high when it was only at Php16/sh about a year ago, I'm kicking myself for not having bought in earlier. Outdoing the PSEi/Phisix The significance of these new gains come from the timing. While indeed we are experiencing some form of a mining renaissance in the Philippines, our stock market as a whole is not having a good start to the year. SCC is moving against the flow and outdoing our main index by a long shot. Heavy favorites like PX and GEO cannot lay claim to the same success at this point in time. Consolidation and support retests Our index is believed to be consolidating between the 2900 and 3900...

Another Downhill Day The market opened slightly higher than its last close but was all downhill from there. Friday's close was at 3241.13 points. The market fell today by 61.65 points settling at 3179.48. The index fell for the fourth time in the last five trading days. The industrial and property indexes took the biggest blows falling 48.55 and 42.68 points each respectively Among the top ten most traded stocks for the day, only MWC gained from its close last session at 17.75, climbing to 18.00 today. Thin Trading Overall trade value was higher than what we saw in the last two trading days but still relatively thin at the Php1.566 billion mark. Last year, I was told that we were averaging Five Billion Pesos in trades daily. We're a long way from there at this level.

With the recent holidays, Chinese markets sidestepped the turbulence in global markets last week. The question now is, will China play catch up and spark another global sell off this week? The SSE 180 index of the Shanghai Stock Exchange closed last at 10,894.75 points on February 5, 2008. The SZSE index of the Shenzhen Stock Exchange closed last at 16,859.64 points on the same date. The Philippines avoided the troubles as well, barely moving up or down at very meager trade values on the days of the lunar holidays. With foreign selling coming to a halt, perhaps our own market is raring to make a rally this week. I hope China markets are raring to rally too.

According to stockerblog : "Some interesting trivia about the Philippines: 1. It is the 12th largest country in the world by population. 2. It is ranked 25th by Gross Domestic Product by purchasing power parity 3. It was a founding member of the United Nations. 4. In 2005, the Philippine peso was considered to be Asia's best-performing currency, according the the CIA World Factbook. 5. Their economy grew at a rate of 5.4% in 2006. 6. Its two biggest trading partners are the U.S. and Japan. 7. It is a member of the World Bank, Asian Development Bank, the the International Monetary Fund, the Asia Pacific Economic Cooperation, and the World Trade Organization. 8. More than 180 languages and dialects are spoken in the country." This makes the Philippines sound so nice! Why, then, is our government such a mess?

The R word The overused word for the month of January is recession. Everyone talks about it because its rearing its ugly head in the U.S. and for better or for worse, what happens in the U.S. affects almost, if not, the whole world. The debate is ending The long and seeminlgy unending debate on whether the U.S. will head into a recession seems to be tipping in favor of a recession. That chilly word is all over CNBC and even Ron Nathan who has long been arguing that it isn't here yet nor is it coming seems to have modified that opinion a bit. Good news in there, somewhere The gloom and doom in his last article didn't sit too well with me so I prefer not to mention those points here. But I very much like that he ended by pointing out that: "There are signs that the Philippine Stock Exchange index may be bottoming out. Foreign selling stopped last week after seven continuous weeks averaging nearly P1 billion a day. I suspect the pension funds are buying heavily, especiall...

According to Wikipedia, Isaac Newton, the famous physicist, lost some of his money due to speculation in The South Sea Company stock in the 1720s. Isaac Newton lost over 20,000 pounds (£1.68 million in today's money) of his fortune. As a result of this crisis, he stated "I can calculate the motions of heavenly bodies, but not the madness of people". My friend who is a physics teachers believes that its possible to use the "turbulence theory" for forex trading. In response to that, I wrinkled my forehead and nodded as if I understood what he was saying. I'm convinced that more pinoys should get into stocks. Specially the yuppies with disposable income or even students with spare cash, but never - ever without proper advice. American Investors watch Warren Buffet, among others, and listen closely to what he says. Here in the Philippines, I don't know who would be his counterpart but I trust the opinion of Ron Nathan "The Bearbull" who writes a c...