Today was...okay. The market was up by as much as 70 points but the it closed lower, gaining 48 points by the close. I think this was due to some forced closings. I noticed the index dropped near the close. If I'm not mistaken, AC was forced closed 3 pesos lower. It ought to have closed around 339 pesos but it closed at 336 instead. The biggest contributor though, is AEV. It ought to have closed at 42.95 but it was forced to close at 42.50. What's up with these weird forced closings?
Anyway, like I said, today was a flat day for me. I say 'flat' because it wasn't exciting—disappointing, even. If you bought yesterday, for sure, you made some money today. If you bought today, you might have lost or best case, break even. I averaged up on DMC at 35.90. I was expecting a breakout so I took the chance. When it didn't, I sold half of the position I bought yesterday at 35.55. My cost was 34.50 so I took my 1 peso. DMC rallied to close the day at 35.85. #-o I transformed to a chicken that's why I sold half. On the daily chart, it is calling for a hold but I still sold. Damn these irrational tendencies! :P LPZ pa! I sold 10 cents too early. I don't regret it though. My only mistake is trying to guess the top. I don't guess bottoms so it should also work the other way around right? I shouldn't guess tops either. But I do! LPZ has been going up nonstop. I was so sure that it will stop around these levels. Maybe it will reach 6 pesos first? Hahaha! A profit is still a profit!
I'm on the lookout for one property and one banking stock namely, FLI and BDO. In the very short term, FLI has broken above its consolidating with its new support at 1.08. All I'm waiting for is that spike upwards. The breakout doesn't seem so convincing yet but it sure does look promising! Next resistance may be found at 1.20 or a little bit below that. BDO, on the other hand, is trying to bottom out at current levels. Immediate resistance may be found at 49. I'm looking for a PNB-like kind of move. PNB broke out today. If BDO is able to breakout on Monday, its medium term downward channel points to a resistance at 53.
Oh, I almost forgot. I'm also watching PNX. A break above 13.50 will prompt me to buy it. I've got my fingers crossed.
Oh, I almost forgot. I'm also watching PNX. A break above 13.50 will prompt me to buy it. I've got my fingers crossed.
The chart setup I'm looking for now has changed. If before, I prefer stocks that are consolidating at the highs, now, I would settle for stocks that consolidating near their lows. Consolidations at the highs is a setup I look for to determine possible momentum. If prices do not retrace so much, the tendency of people is to chase prices. Just keep buying higher! However, psychology now has changed. In addition, the market has no momentum so I am dubious with the effectivity of this kind of strategy. Current sentiment is disbelief: "I don't believe that this stock can rally that much. I will sell when I can." In effect, prices go higher than expected since people sell early and try to buy back...higher.
Enjoy your weekend, everyone! :)
2 comments:
fli .50 cents in 4-6 months time....inflation will continue to go up....avoid property stocks...buy aev/ap
Thanks for your input, Anon, but I'm not really looking at FLI for a position trade. I just see potential given recent price movement for a bounce. I doubt I will be holding FLI for 4 to 6 months. :P One week, max! Hihihi! :P I'll still have to see tomorrow though, how FLI reacts to the -88 points of the Dow. That should determine whether I will buy or avoid. :)
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