65 Is A Magic Number

Yesterday, Dow was down 112 points but the PHISIX still managed to climb higher. Today, Dow closed with a 225 point gain. Naturally, the PHISIX shot up to close the day with a 65 point lead. Last night, I was actually hoping that the Dow would only be up by less than 100 points. The market sort of panics with such volatility. Good thing in this scenario, the panic is that of buying. But notice that it was only during the last 30 to 45 minutes of trading that the market spiked up. Prior to this, the market was boring. 

Let's take a look at individual issues. SMDC and DGTL broke out today. MER had a wild 15 peso range, intraday. JGS continued its upswing...Spectacular, as always. And PX... Hmmm.. I'm still trying to figure this one out. Strong bounce off 10.50 but has a downward trading channel resistance at 13.0. Huge volume today too. What I'd like to see PX do now is to form a higher low. Or maybe it should consolidate first to absorb all the sellers who got stuck at these levels... Hmmm... All I know is that I need more confirmation before jumping the gun. 

I may have overlooked something on CHIB. Today, obviously, it was able to hold onto its gains. Now, if it is able to hold at current levels and breakout above 475, then I think a flag formation may be in the works. The target of 500 doesn't seem impossible. If the spike to 500 is as sharp as yesterday's move, then it would be around there that is the peak of CHIB, at least in the short-term. So, I'm looking at an acceleration, almost vertical move on CHIB's part to call it a peak. If it drags to 500, then the scenario I'm looking at will not hold. 

Anyway, the index has broken above its sideway's range. A lot are pessimistic that the market will be able to continue to head higher. Although that is possible, I can't help but think this move is different. I know several position traders who were shaken out with the last bear trap and are currently liquid. If this is so, then a lot are just waiting for a dip to buy. If our market does correct in the next couple of trading days, I think we should set an expectation that the correction will be shallow and fast. During the last three attempts,  the consolidation at the highs dragged. If it drags again, people might get impatient and sell, hence vindicating the sideways trend.