Wednesday, October 22, 2008 20:37
Fear is still in the US market even after 3M and Apple, Inc. posted better than expected earnings for the last quarter. The DJIA closed at 9033.66; shedding another 231.77 points. Volatility remains high as the intraday chart showed that index wanted to rally above the previous close. But by the last hour, the bears attacked once again.
The local market also declined as credit fears still looms in the world markets. Foreign investors continue to liquidate positions as they are net sellers by P680 million. The PSEi opened 6 points below Tuesday’s close at 2110.15 then got pushed to a low of 2072.70. But after 11 am, the market gained strength as local buyers became active closing it at 2093.01. Volume was low, only 800 million shares were traded worth P1.98 billion. The day’s transaction included P723 million worth of crosses.
The last hour of trading showed strength as the sellers stopped and then the buyers became active. If you were watching this yesterday, you could have been carried away. But still, I believe that this is not yet a good time to enter. There may be some issues that show buy signals but I don’t want to recommend any yet. The market continues to show weakness. Expect more disappointing earning reports in the last quarter both from the US and the local companies. So my advice is to continue to stay liquid, save your life earnings for the time being.
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