The December 5, 2007 Report

Market Commentary

Well I'll be dam'd, despite the double digit correction in the US Dow last night we are up, albeit very slightly, by 4 points. We settled at 3,468. It's not much, but it's amazing how our market recovered from an intraday low of being -25 points down. The intra day PSEi chart looked like an inverted head and shoulders. Boolish ito! Hopefully the US goes up tonight.

77 stocks were up with 32 counters down. 52 remain unchanged.

Top active stock was ALI, top gainer was Aries Prime (Who?, ticker APR) and top loser was Manila Bulletin (MB). Lopez stocks were the rulers today with FPH, FGEN, MER and BPC up in tandem with each other.

Inflation for November was higher than expected, which could dampen hopes for a local interest rate cut. However in my opinion, November and December historically have a higher inflation rate. It's not surprising. My stance is that the BSP will still cut its rate, following the move from the US.

Third day of the first week of December, we're still up, though marginally. We'll see if the buying momentum carries us towards a strong first week of December by Friday. Hopefully it does so Absolute Traders can have a great Christmas Party! Whooah!

Foreign Houses:
DEU -93M
CLSA +8M
MACQ -144M
JPM +26M
UBS -57M
ABN +0.424M
DBP -45M
PEP -125M

Looks like it's still net foreign selling. Hmm, what are you selling foreigners?

BPI, SM, MWC, BDO - Deutsche
TEL, MER - JPMorgan
VLL, SMPH, AC, GLO - UBS

Well everybody's shifting their portfolios.

STOCK

LC is retesting its resistance of 0.54, and is precariously near its 1 year high of 0.56. Tomorrow should be interesting. LCB is also retesting its high.

PA closed weaker today at 0.25, but still within its tight range. Before, tsupiteros could play it with one fluc per 0.005. Now it's a bit more difficult, and expensive. So a breakout from 0.26 and eventually into 0.27 could earn it a tag of "STRONG BUY". Just be cautious as there seems to be an RSI divergence. *Jitters*

AJO is also an interesting trading play. It was up 12% today. After a consolidation period, it's now broke out of its sideways pattern. Let's see if tomorrow will be a continuation of its bullish movement.

VLL. RSI going up. Price chart going up with a breakout today. Initial target of Php 6.00 as it is a strong resistance point.

Other Stocks:

EDC is now at 7.10. Remember, FGEN bought this at 9.00. I didn't say this was a trading buy :p
ELI a rights offering at Php 1.00, 1 for 3 shares held. It's now at 0.87. Let's see if this would continue tomorrow.
OV. I don't have news on this, but this could be a solid long play.
FGEN. We was right, it's now back up at 59.00. It's now on 62.00 per share! Congratulations for those who were patient. And also with FPH! Wow. Congratulations to the bottom pickers last week hehe.

* I was able to daytrade VLL. Hehe. I almost thought I wouldn't be able to sell today at 5.50. It was really amazing, with about 2-5 seconds left to closing time, Asiasec bought the shares up to 5.60! Hope for another round tomorrow!

STUCK

GEO. Is this an ascending triangle?

SUCK

The dollar, falling to lows yet again. Better sell the dollars folks. If you want to hold dollars, buy it next year or when the chart is showing signs of a rebound.