PSM 09.24.13

By: Erwin San Luis
Philippine Stock Market Updates

September 24, 2013

Trend: Consolidation preparing for rally
Phase: Consolidation after last week’s Hype
Mode: Preparation for month end window dressing

PSEI is seen to consolidate in the 6,400-6,600 range this week with most analyst peg 6,400 as a strong support leaving traces of downtrend in the dust.

As strong the support it is, a fall below this support line (which would be less likely to happen) would send the market back on the extended C wave trend

Anyhow market just celebrated the FED’s stand regarding the QE exit (FED Tapering) which led to hype last week and in turn makes the lack of action this week. (dagdag mo pa ung force closing last friday)

Usually after a hype, market goes down to correct its trend, but this week, we may see the market simply range trading as a lot of market participants will see this opportunity to take some profits

Market is still net foreign buying ever since the fed announced its stand, so with both of factors it gives opportunity for new entrants to get in the market and position their portfolio

Month end window dressing would be short next week as we only have monday as the actual play day for window dressing since the last few days for the month would fall on weekends

it is recommended to fill up your position this week for the window dressing plays for next week

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