The global markets have thrown everything in to stop the financial disaster from happening, including the proverbial kitchen sink. It still doesn’t stop the carnage from stopping.

With that, the PSEi has been suffering the same consequences of the other markets as we have had our third  consecutive gap down in the same number of trading days. We suffered our worst day for the year by falling 116.45 points to 2307.74. Net foreign selling outweighed net foreign buying as a total of 1.389 billion pesos worth of stocks were sold against 854 million pesos worth were bought.

Curiously, the volume hasn’t picked up as we accelerate downward. Could it be a case of people having nothing left to sell or are they waiting to buy at a cheaper price? Speculations aside, the MACD confirms that things are getting worse and the best thing to do now is just to stay out.

Recommendation: Stay liquid.