We started strong last week by shaking off the immediate effects of the Dubai mess. As other major markets were recovering, we continued to climb out of the Dubai hole.

However, this doesn’t mean that everything is already okay.  We breached through the 3100 level briefly but the PSEi backed off that level by tumbling down for two straight days.  People definitely took their profits during these days.

The index continues to be bullish as the moving averages are still supporting the PSEi in the bullish setup.  But we should be careful for this week as the momentum of the index seems to be weakening as evidenced in the MACD where fast line has lost its momentum.

If you’re still asking when is a good time to sell your stocks, this week could be it.

Recommendation: Take profits
Support: 3045