These are the stocks that big institutions are buying and this buying can take weeks or months (Thanks to SpicySiomai for helping me with the data gathering).
Below is the total Net Foreign Buys for the Year 2012:
Presenting the Stocks with High Accumulation 🙂
1.) Money flow and Accumulation are fairly important variables when we look at stocks and sectors.
2.) Strong volume increases signal that mutual funds and other big funds are actively taking positions.
Recommendation : Institutional Sponsorship is generally a good thing. A good pullback entry with the big houses by your side is a good place to bet upon. 😀
It’s also interesting to see whether the foreign buying is consistently buying, or is sometimes buying all the stocks in just one month or not. For instance, I particularly like the following consistency in buying:
I guess what’s more important is to see, whether the buying is done haphazardly, or in small bits every single day etc.
Example: Stealth Buying – ensued into massive strong gains
Nevertheless, from the slew of stocks you see with more than Php 1.5 Bil worth purchased in the stocks, you cannot say it’s over until it’s over. Hang on and sit tight 😀
1.) Go to the quotation reports released by PSE website, get the .csv files, and make the studies yourselves 😀 It’s worth it.
2.) Just because there’s a lot of foreign selling doesn’t mean the stock won’t go up. However, it may consolidate or take some time before going up.
(Example: PGOLD is net foreign sell Php 340 Mil, although local firms seem to be able to buy the shares, that the price hasn’t sunk yet. TEL has also met some foreign selling but it is still able to go up 😀 .)
It makes me think that, when the foreigners are selling their shares in very small sizes, they could signal a pause and consolidation, but not exactly a distribution, since they were willing to buy a lot of shares previously.
Distribution charts are like these (Notice huge foreign selling, and unabated) :
– Faceless Trader