The PSEi has been turned back the last week and left many disappointed.  The downturn was brought about by the drop of some key index issues, which some have already seen was quite hard to sustain.

If the index will correct further, we could see this go down to the 2600 level.  Hopefully that wouldn’t happen. However, the MACD’s momentum is pointing downwards and accelerating.  This indicates that we should expect further correction the following week.

The ghost month phenomenon has some worried that at least for one month, the PSEi will be very sluggish.  We’ve seen the contrary for the past few years. Let’s see if the index will follow recent years’ trend of ignoring the ghost month, or actually honor the tradition.

If you feel that your profits are good enough, you may choose to lighten up on some of your positions.

Recommendation: Sell on strength
Support: 2600