News / Philippine Stock Market

PSEi Outlook For Sept. 22 - 26, 2008 By Bonner Dytoc September 21, 2008

Let’s hear it for the US market for turning around and giving all the markets that needed push.

The 410 point rise on Thursday night woke everyone up and many tried to buy up whatever they could get their hands on seeing how “cheap” the stocks have become.  This may be the turning point everyone was waiting for. The PSE turned its fortunes around as it created a one-day island reversal (if there is such a thing) to kick start the bulls into activity.

On the bigger picture, it’s very possible that the index has created a double bottom, although this is still too early to tell.  What we need to see for our market is that the index goes back to the 2600 level and we could see things turn around.

The MACD would probably turn on its heels and cross above the zero line to follow the momentum.  But until such time, we should not rejoice just yet.  There’s still a lot of work to be done to restore the people’s confidence in the market.