PSEi was up by 19 points today to 2,612 and was led (again) by Lopez stocks, mainly MER and First Philippine Holdings (FPH), which registered a whopping Php162 million and Php60 million worth of net foreign buying, respectively. Total market turnover of Php2.8 billion was a little bit wanting for me. This just meant that there were lesser aggressive buyers today than yesterday or last week as we are approaching the resistance. Breadth was still good though with the advancers outnumbering the decliners 85 to 33 with 55 unchanged. We were net foreign buying overall of Php162 million today (MER coincidence?).
MER closed 199 today on huge volume after hitting a high of 200. Rumor mill was speculating that Ramon S. Ang (RSA, for short), president of San Miguel Corp. (SMC/B), might be enticed now to sell its MER holdings to MVP at this "spectacular" price. :)
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I got my documentary stamp tax refund today, which added 1.5% to my year-to-date return. :)
I realized that I was whipsawed by LC the other day (refer to my previous post) after massive selling by Felipe Yap-associated brokers. So I bought this back up at a much higher cost of 0.245 instead. :( But at least I was able to ride this one. It broke out of 0.25 resistance today confirming the flag pattern (resistance was also the 100-week moving average). LC closed today at 0.28 resistance on big volume. I expect this to hurdle this resistance tomorrow barring any unforeseen circumstances. Refer to my technical analysis below (click to enlarge):
LC daily:
LC weekly (cup and handle pattern still intact):
The holding firm that I was monitoring (refer to my previous post) was a bit shy these two days. It might test previous resistance first to confirm breakout. I'll keep my eye on this one.
I also bought a ton of NiHAO Mineral Resources (NI) the other day at 8.6 due to strength and breakout from previous resistance of 8.5. I'm still holding onto this one today. We might taste some wall on the 10th to 11.5th floors.
NI daily:
I disposed off more than 50% of my holdings of MEGA-heavy MEG at 1.08 to transfer some to Alliance Tuna (TUNA) at 1.62. Macquarie seems still has a lot of bullets to pepper hapless MEG investors like me. :( Selling to buy MER and FPH? Macquarie were top buyers of these two today (this broker was associated to MVP before. Hmm...). Buying of TUNA was based purely on breakout of 1.60 strong resistance. But we might experience some selling towards 1.68-1.70 as seen in the chart below:
TUNA daily:
I'm still holding on to the rest of my holdings. PAX looks interesting. I expect this to erupt soon as there were signs of accumulation on going. :)
Composition:
NI = 27%
PAX = 16%
TUNA = 13%
MEG = 13%
LC = 11%
WEB = 11%
Odd-lots = 3%
*I broke my cardinal rule of not to hold more than 5 stocks at a time. I guess I'm just bullish (for now). :)
Portfolio invested: 95%
Cash: 5%
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5 comments:
"I got my documentary stamp tax refund today, which added 1.5% to my year-to-date return."
-> I hope they do the same thing when it comes to bank accounts. When I got my statement of account from the bank yesterday, I noticed there was a tax deduction from the measly interest my deposit earned. It sucks.
Yep. That's the 20% tax they're withholding from our less than 1% interest. Hehe.
Do you trade stocks too?
Twenty percent tax from my less than 1% interest? That's outright robbery if you ask me, ehehe. =)
Nope, I don't trade stocks.
market's been going up almost without pause for the past several days.
2nd quarter earnings data have been boosting the market as i have expected.
but the ghost month is coming up.
do you think there will be a major correction soon or will the positive data keep things going up throughout the 3rd quarter?
@Andy: That's right. We can't escape death and TAXES. :(
@darkjedi: Hmm... As much as I want to forecast what would happen to 3Q, I'm not good at it. :( As for me, since we broke out of 2,626 today convincingly, it will serve now as our support. Resistance is around 2,750-2,780. YES, I do believe this market is really exuberant and short-term overbought. A correction anytime will be healthy. But I don't foresee any major ones. Probably a healthy dose of consolidation first between the resistance and support mentioned above. Caveat. :)
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