Oct 14, 2014 – Volatility Is Your New Normal, Bullish Divergences in Retail Showing Up

After yesterday’s 200 point drop, we have a roller coaster day today.  We opened with a negative lead from Wall Street of 223 points down at 16,300+ and so the market had an early sell off with a low of 6,896 went up 100 points to 6,990 and finally closed at 6949 or a drop of 22 points.  End of day, foreigners still sold P1.1 Bil.  They never seem to run out of shares to sell don’t they? Oh well, more volatility.   Essentially, we are like headless chickens who doesn’t have a clue whether we will go up or down.  You cannot trade much if we have such a volatile market.  That said though, there are some interesting action happening in Individual companies which may help traders sort out this chaotic market of ours.

Let’s start:

1.) #MBT fulfilled my death wish which was to break 85 and hit 83.  Well it did hit today.  Verdict – More sideways movement to come, and lets see if 83 will act a possible basing point.  That was the previous short term low. If 83 fails, more sideways movement to the psychological 80.  -202/499

2.) #SECB and #BDO are doing fine.  Don’t worry about them too much.  They’re just falling down because the entire market is falling.  Well now you know the difference of a leader versus a laggard.  At least the leaders, even if they fall can revive and recover first.  #SECB +32/83 and #BDO -1/758

Power Sector Finally Succumbs But Because They’re The Last To Fall, We know they’re the Strongest of All:

#EDC -278/594 Despite that huge selling, it’s still a higher low and in fact bounced from intraday lows.  Hence, this is a strong company.  On strong selling days, watch and bargain hunt for leaders like this.

Same story. #AP also leader but less volatile – 149/295

#TA 1/17 (somebody asked me why I wasn’t covering #TA in my wrap ups) Although it’s holding, this is still considered a 2nd or 3rd liner in the power sector so we’ll start with the large cap power producers first.  Note however that this company is also being accumulated.  Sector is strong.

#MER 38/124

In general all Lopez related energy stocks are strong.  Keep them or add on possible pullbacks (find good minor support zones) and trade while there’s volatility.

Consumer

Weird #PF gets 11/12 at 230.  Somebody essentially bought 90% of all value traded on #PF today and that somebody is a foreigner.

#URC always been a leader and shows it’s strength by recovering back above 170 as well as 29/590

I guess we are all waiting for any bargain hunting entries on #URC possibly near 160 if we can get?

#JFC will look further downwards in finding its base (maybe below 180) since 185-195 is strongly being sold by Csuisse.  -72/214

#DNL-15/74, closes at the high despite foreign selling.

Not Quite Indiscriminate Sell Off Unlike Yesterday

#AC – no selling today. 5/464

#AEV -more punishment (you’re not a good boy daw) -58/204 (Weird since #AP is honestly strongly bought, tale of two worlds)

#AGI 14/435 (Great, no foreign selling)

#COSCO-22/90 (foreign selling still not finished, more downside but possibly just a 7.00 loyalty check if ever)

#DMC Foreign selling stopped? 9/120

#JGS 21/340 (interesting, foreign selling stopped?)

#SM -85/377

Properties

#ALI gets sold more -264/817 *Lets see what it does if it touches 30.  Possible support zone

#House gets bought when it broke 7 and stayed at 7, +7/31

#MEG -39/264 (foreign selling but lessening)

#SMPH 48/368 (tlgang may bumibili nito so abang sa ilalim)

Telco Magic

#TEL can influence buying just as long as there’s no foreign selling.  That’s why its back above 3000. 141/1263

#GLO 28/177 (So the foreign selling is over after their “OA” selling due to the finite free internet promo of PLDT?)

Casinos

Strong selling on #PLC and breaks down below the 1.65 placement price.  Frankly, I wouldn’t touch this. -67/136 as the foreign placement buyers are cutting their losses as it closes 1.61

#RWM strong rebound from 8.50 but has selling at the 9 areas -19/40

#MCP bought albeit tiny 15/168

#BLOOM – 22/141 (slight profit taking)

Retail Gets Day 2 Foreign Buy Flows

Notice bullish divergences with Puregold and Robinsons Retail recently?  Despite those 200 point drops of the PSEI index, these two fail to make new lows.  That’s cool.

#PGOLD stands and holds its 32 ground to close 33 with 12/32

#RRHI stands and holds its 60 ground to close 62.4 (with only 30 cent range 62.3-62.50 through out the day) +42/77

This is very good for #RRHI since tight bids means very controlled change of hands.

Nickel Miners

Although #NIKL gets -91/233, interestingly the bulls put up a fight for it to close at doji 40 level instead of closing below 39 after a break to an intraday low of 38.65.  Still, sentiment will dictate or maybe the disclosure of good value turnover finally ignited some buying from other funds.

#Marc -7/47

Safe Haven Preferreds

Noticed #ABSP never dropped below 40? +8/67

*****

Picture of the market is bleak but we share that the damage done hasn’t been indiscriminate selling today versus yesterday.  Some bright spots on the retail area.

– Faceless Trader

Large Crosses

#CMT  Php75M cross from ATR at 2.00 with foreign selling.  Does the seller still have shares or is that it?

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