Here’s my weekend wrap-up of the Philippine Stock Exchange Index (PSEi) to supplement my previous post about it (kindly click here to see it). Despite the drop of the Dow Jones Industrial Average (^DJI), Nasdaq Composite and the S&P 500, the PSEi defied all odds by maintaining its uptrend and that can be seen in the chart provided. Well of course it dropped a bit as a reaction to the more than 5% decline of the ^DJI for the past few days but still, the PSEi didn’t follow the drastic downswings of that US benchmark. At the same time, there is no head and shoulders breakdown or merely no head and shoulders setup at all in the current PSEi chart as far as my eyes could see unlike in the 3 US stock indices I mentioned (kindly click here to see the setups: 1…2…3…).
In the chart of the Philippine Stock Exchange Index, the price is currently moving within the uptrend and the 3,360.00-3,380.00 resistance levels. As a result, if it continues to do so, the price will no longer have space to move further unless it breaks above the 3,360.00-3,380.00 resistance or break down from the uptrend. If the current resistance gets cleared out, 3,667.74 could be the next price mark. On the downside, if the uptrend gets broken, the next support could be 3,219.46. Like what I always say about uptrends, as long as the uptrend remains intact I’d stay along side with the bulls.
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Would you consider PSEi as already “de-coupled” from DOW? Have read some experts express this opinion.
Your insights are of value to newbies like me, and hope you will continue with your analyses of the market. More power!
I wouldn’t consider that it has fully “de-coupled” since the PSEi still follows the DJI at certain times especially during major sell-offs like the 2008 financial crisis. However, it also doesn’t necessarily mean that the Philippine Stock Exchange would always follow the direction of the Dow Jones like if you look at their charts now. They seem to be going against each other as the PSEi is still trending upwards and the US indices have broken down from a head and shoulders. Also, when the DJI is up, sometimes the next day the PSEi is down and vice versa. But personally, the DJI is still the benchmark of the global markets and I actually use it as a guide to know where the other markets are headed.
Will post regularly, cheers and more power to you as well!
Just a thought, i’ve been in the markets for quite sometime and been following the DJIA and PSE. I agree with Al.
To Jojo, i think the best thing that you can do right now is to educate yourself. Its your most powerful weapon. That way, you can start your own analysis and use other’s to confirm. Its also an avenue where you can profit on various areas that are not covered by the market analysts. Education gives you a high degree of freedom/confidence to go against the crowd.
I want to quote your post in my blog. It can?
And you et an account on Twitter?
Hi Aranoid. Yes you can quote our post in you blog as long as you place the necessary tag and/or link. On twitter, you can follow me instead.. ronacoba. Ty!
Nice post. Really I liked it. Thanks