News / Philippine Stock Market

PSEi Outlook For Jan. 14 - 28, 2008 By Bonner Dytoc January 13, 2008

It’s true what they say, it’s very hard to make money in a choppy market.  What’s more choppy than the PSEi?  As we can see, we are nearing the six months mark for this consolidation ever since it hit its all time high.

Since there are no leads for the market to follow, it keeps following what the Dow Jones Industrial Average (and the S&P 500, & Nasdaq, for that matter) does.  The good news is that we don’t follow their movement totally.  Like last week when it dropped by more than 200 points, our market just went down by 7 points.  Add to that, we just stayed inside the downward channel and we didn’t break down from it.  In fact, after that pleasant surprise, the PSEi has covered the gap that happened at the start of the week

So now, the market needs to surpass 3550; which is where the 130MA is.  If this happens, it gives the local traders some confidence that it could move higher and retest the resistance of the channel.

The problem will be since we earlier said that there are no leads for the market, we’re bound to follow the recent move of DJIA again.  They dropped 246 points last Friday.  Here we go again…