July 7 trades

Market seems to have bounced from support since yesterday, but volume of both days were a bit anemic. Philippine Stock Exchange Composite Index (PSEi) went up by close to 1% to 2,472 today but in only Php1.6 billion volume. That means, less and less buyers were willing to bid up the prices especially now that the 2,500 psychological resistance is near. Major contributors to this ascent were MER and Ayala Corp. (AC), which contributed 9 and 5 points, respectively.

I liquidated (or sold, cashing out) some of my stock holdings today. I managed to sell MER at 160 near the open thinking the resistance of 161 will hold. Well, in the end, it didn't. MER managed to hit a high of 165 before closing to 161. Anyway, my gut feel tells me that this was already "toppish" as trade volume from 162 to 165 were a bit thin and MER was now testing the resistance of its uptrend channel. Anyway, at the end of the day I would like to thank the Lord for this timely blessing especially now that He knew my family is in debt. :) MER technical analysis below (click to enlarge):



I cut APO at 1.18 thinking it will not go anywhere, and might even possibly go down once the market corrects. My cost was 1.30, but good thing I only had minimal exposure there. :)

I managed to hitch a ride on PX this morning at 7.3. Volume is still there, so I'm holding this for now but only for a quick flip. Relative Strength Index (RSI) is 75 already which is already overbought. But based on previous RSI levels, we might encounter some resistance at 80 levels. So I think there's still some room to go up (hopefully). Technical analysis of PX below (click to enlarge):



I'm still holding on to PAX even though it was weaker today (minimal volume only). Pennant is still intact. I set my stops (or cut loss or selling point) at 2.40 as this is the breakdown point of the pennant pattern. Resistance still holds at 2.60-2.70. It needs strong volume to break this out. Technical analysis of PAX below (click to enlarge):



Composition:
PX = 24%
PAX = 23%
Odd-lot stocks = 4%

Portfolio invested: 51%
Cash: 41%