Ghost month or not, the Philippine Stock Exchange Index (PSEi) continues to make new highs since December 2007.  This concept of the Chinese ghost month has not been observed for the last 3 years, at the very least as liquidity has not dried up during this particular time. In fact, we have seen the index pushed to higher levels during this time and a lot of issues have been breaking out of their consolidation phases.

That being said, our indicators, the moving averages and the MACD, are both confirming the continued bullishness that this market has to offer.

Some are already cautioning care as the market could be overheated at this point.  We’re telling people that so long as the support line of the index holds, we remain bullish.  However, we do not discount the fact that a correction could always be around the corner so it would also be better to play it safe even while the going is good.

Recommendation: Hold
Resistance: 3896