News / Philippine Stock Market

PSEi Outlook For Feb. 11 - 15, 2008 By Bonner Dytoc February 10, 2008

It seems that it’s getting harder and harder to trade the local market.  You can’t short sell, at least legally.  You also can’t go long since it seems that every stock is prone to follow the index when it goes down.  Of course there are some exceptions but these ones do not have any clear area pattern that we can see.

After PSEi has broken down from the channel, falling off a cliff, it has rebounded immediately to retest the support of the channel BUT it has not yet settled inside the channel.  What it is doing is retesting both the channel’s support, and the immediate support of the PSEi.

So where do we go from here?  If the immediate support is strong, then the PSEi’s direction should soon be up.  But since even that is an uncertain prospect, the best bet for us would be for the market to move sideways and find some momentum to go higher.  Otherwise, we would have to wait longer before things turn around.  When things do become better, we should expect the blue chips to lead the way.