Enjoying the view
3:00pm Tuesday 7 July 2009 PSEi 2471,76 (+0.92%)
What really impressed me today was the move of AC which closed at 277.50. Last Friday AC traded to a low of 260 and today’s move only tells me that investors who are bent on gaining exposure to the market are picking this stock. Unlike MER which is obviously in play, AC merely represents a surrogate for the market in general. The underlying message that I see is that whatever mixed sentiment I am perceiving, bottom line is people are happy owning good stocks.
I am constructive in this market, but I can’t help myself from wanting to time my new entries. In spite of a 22 point rise in the index, some of my favorites – GLO, TEL, MBT and FLI are being left behind. Likewise, the value turnover does not really turn me on. I guess patience really needs to be tested.
Second line counters which have been holding up are PNB, MEG, and SCC. I think they are trading at their strong support levels. What could make this market go down? I think that as we see major economies fail to show some kind of growth in the near term, the market will have no choice but to rate itself downward.
My singular reason for holding back my exposure, i.e. keeping it in cash, is because rallies do not go on indefinitely. We’ve seen the index surge to 2626 and come back to 2353. My hang-up is that I can’t seem to ignore where we rallied from which is 1759. An 867 point rally just has to be consolidated either downwards or sideways. I’m taking the view that we could still move lower. At the very least, we would move sideways, and that would mean that keeping myself in the sidelines won’t make me lose much.
At the end of the day, it will still be the one holding the cash who can seize the opportunities.
No comments yet.
-
Recent
-
Links
-
Archives
- March 2011 (7)
- February 2011 (17)
- January 2011 (20)
- December 2010 (12)
- November 2010 (13)
- October 2010 (17)
- September 2010 (11)
- August 2010 (11)
- July 2010 (16)
- June 2010 (16)
- May 2010 (13)
- April 2010 (16)
-
Categories
-
RSS
Entries RSS
Comments RSS
Leave a comment