Boom, Boom, Pow!

What's the psychology in the market now? I'm trying to figure out what's different this time, why the market is continuing its breakout this time and not on the other six attempts. The only thing I could think of is because after six times, market participants thought that the resistance will hold for sure, so, they sold their positions, hoping to buy back on the correction. The correction during the first week of July proved to be shallow and the PHISIX found its way back up to 3,374 and now, at 3,435. Last Friday, when the PHISIX paused around 3,400, I thought for sure, the market would retrace from there. Obviously, it made a bull flag formation instead and we see the continuation begin today. Are you jumping for joy already? I can't seem to shake the feeling that the correction will sneak up on us. :P

PNB ruled the banking sector today. RCB kind of dominated too. UBP probably got exhausted from its huge leap yesterday so it took a breather today. I expect PNB to take a break in the next few days, if not tomorrow. So, if you were able to ride the banks, took some profits already, where should you shift to? Based on today's outburst, I think the answer to that is the property sector, which has only started to move. It's a bit weird though, that the rally in property stocks wasn't sustained by the close. In the case of RLC, 323 overwhelmed the buyers at 14. VLL was not able to sustain its gains at 2.06 as it closed the day at 1.98. FLI closed two flucts lower from its high.

Somebody made a comment in the office, "Hit and run parin ang laro ngayon eh, no?" I don't totally agree with that. That may be true to some extent but I think it's still too early to say in the case of property stocks. See, they all moved so fast in an hour. ALI was actually the only one moving at first, but come 11pm, the rest of the property sector followed suit. The move was so big that in the case of FLI, MEG, VLL, I don't think you can blame people who bought at lower levels to sell near the close. If you try to look at the bigger picture though, you'd see that there is an upside in the property sector. They have been kinda sleeping during the past few weeks already. Time to wake up, sleepy heads!

Just a disclaimer, I joined in the rally in the property sector today. I was just talking to an officemate yesterday and he said the property sector looks "good to go" then suddenly today, boom! They started to move. I mentioned here yesterday too that I'm not going to play momentum but still, ended up buying property stocks today. In my defense, these stocks haven't broken above their consolidation. I bought MEG at 1.40 today, more RLC at 14, and some SMDC at 7.20. I was able to sell 1/3 of my VLL at 2.04.