PSE / PSE Indices

PSEi Outlook For May 12 -16, 2008 By Bonner Dytoc May 11, 2008

Have we reached bottom?  I wish I could answer that right now.

Although there are selected issues that could be traded for the moment, the general sentiment in the market stays the same.  The bearishness is due to lack of fresh leads and other fundamental factors like the rise in oil prices and the continued uncertainty in the US’s economy.

Since December, we’ve been bearish and this is confirmed by the oscillation of the MACD.  However, we could be seeing some relief soon with the bullish divergence, also in the MACD.

Should the resurgence in our market happen soon, we could expect the PSEi to return to 2900 level.  At that point, we’re still not bullish but a rally like that would give some hope to the traders.

As we said before, stay liquid.  Should your hand itches, go wash with soap.  It may not be time yet.