August 3 and 4 trades

Our market continued to trek up towards the 2,900 resistance level. The mining sector, particularly, Manila Mining Corp. (MA/B) and LC/B, led the rally last Monday, but its strength didn't spill over today. MA/B and LC/B opened higher but closed unchanged and lower, respectively.

PSEi Daily:


We're still within the mid-term up trend channel (red lines), but we're now nearing the "former" up trend channel support line now had become a resistance (blue lines), which is incidentally around the 2,900 area. If we're going to use the "measured move," we can see that it points also to the area of 2,900. MACD and RSI are also testing resistance levels.

PSEi Weekly:


On a bigger picture, strong resistance is seen at 3,000, but we need to be wary as well of 2,900 (encircled). Inverse head and shoulders pattern is still intact as previously mentioned.

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As market continued to trek up, I'm lightening up my exposure just in case it would turn sour. I got some MA shares last Monday at 0.024 as I saw strength in it (it went ceiling then) but sold it today at 0.025 for a measly profit. :( I was caught in heavy traffic this morning so I arrived at the office a bit late. So, I missed the high of 0.028. :( But anyway, at least it's still a profit. For those who don't know yet, MVP also announced that he's considering MA as well aside from LC. I got some feedback from various brokers that MA is a better play than LC due to the fact that the MA's mine site is adjacent to Philex's (PX) Padcal site. Better economy for PX perhaps?

I also sold half of my FLI yesterday at 0.99 as I'm seeing toppish conditions. It was confirmed today as it formed a dark cloud cover candlestick pattern (bearish). See image below:

We'll see the confirmation on Thursday to validate this short term reversal. I sold all the rest of FLI today at 1.00. :)

I also got rid of WEB at 0.055 on Monday for 5% profit after holding it for quite some time now. I decided to sell this because it was not moving much, and decided to free up some capital tied up to this so that I can buy some other stronger issues. Efficiency-wise, it was not a very profitable trade because of the length of time I held on to this, and for only a 5% profit. And, to add insult to my injury, it just shot up today and closed at 0.06! Oh man! :(

I sold half of my AC today as well at 325 for a decent 8% profit. :) It seems to have respected the neckline at 320 today (opened 325, high 327.5, but closed at its low at 320) - classic bearish meeting lines (not good). That means, in an up trend, the price opened higher than yesterday's price, but closed unchanged versus yesterday's closing. I'll hold the rest of my AC for now with mental stop set at the break of 320.

I cut all my CYBR at 0.70 today. I learned once again not to be greedy. I have already set my sights to sell this one last week at 0.80's, but I didn't. The Lord rebuked me. :( I also sold SINO at cost.

I transferred much of my sales today to acquire a truckload of Energy Development Corp. (EDC) at 4.75. It seems to me that it broke out of its flag formation with a target price in the area of 5.3. One major obstacle right now is the major resistance at 5.00.

EDC daily:


Composition:
EDC = 28%
GMA7 = 19%
AC = 13%
Odd-lots = 3%

Portfolio invested: 63%
Cash: 37%