6 September 2011

PSEi 4,303.08. The composite index has tested this level previously, bouncing off its closes on Aug.10 (4,290.14), Aug.22 (4,291.11), and Aug.26 (4,305.56). From this support level, the PSEi bounced on to short-term highs on Aug.16 & 18 (4,372.70), Aug.23 (4,375.39), and Sep.2 (4,392.91).

Medium-term, the key levels are still 4,550.53 and 4,157.03. Right now, the index keeps trading between these two. There’s still a lot of market indecision out there.

18 of the 20 top traded stocks declined today. The 2 notable exceptions were MARC (+5.37%) and BHI (+5.38%). I’m unfamiliar with today’s top gainer ICTV (+31.82%). It’s more than doubled from its 0.42 base in August. I wonder what’s up. As for AGP (-16.67%), ZHI (-5.95%) and CYBR (-5.49%), I wouldn’t touch those with a stick.

Bottomline: PSEi is at short term support. If these levels hold, there may be short term tsupita opportunities again. If these levels break, watch out for a possible retest of the 4,157.03 medium term low.

Personally, my preference is still to stay 100% liquid in cash instruments. Be careful and good luck, Traders!

31-37. Tails.

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