Oct 21, 2014 – Basurero Wonderland – Mad Dash for Trash

Basuras are constantly moving targets.  What’s hot yesterday is not today.  What’s hot today may be tomorrow’s largest loser.

But here’s the round up.  You do know that the market is toppish such that everyone’s playing basuras.  Their cash is best played making 10-20% gains or 10-20% losses.

Volume and value traded has been surging in the basura index – specifically Gatchalian companies.  There’d be winners and losers here but for now, the dash for trash has clearly been rush and rash.

Mad Dash and Crash?

#IS finds 48 cents as a short term intraday top.  All Time High Volume Means One Thing.  Somebody Just Unloaded and Somebody Just Got Duped.  Spike shows exhaustion.  The close at 0.385 shows that sellers are greater.  Looks like the party’s over for #IS.  Everyone happy?

Volume shows top.  All other rallies will be sold on bounces (except if it gets oversold too quickly and drops at 30 cents where everyone will immediately hop back in and possibly play around.

volume shows top

Spike shows exhaustion top for buyers.   45 cents is most likely an important resistance here.

spike shows exhaustion

*****

Gatchi stocks all over.

#WPI Follow Through Possibility.  Everyone who anticipated #WPI breaking 40 (including me) found themselves that the stock indeed has enough jockeys to help push the stock to new heights.

wpi follow through possibility

Here’s the 5 year chart:

wpi five year chart

From a net long transaction and judging from the amount of longs (value traded just P6M pesos on 12M value traded i.e. out of the 12M who bought today early on, half of it flipped and sold at market), this stock clearly hasn’t reached every nook and cranny of the mom and pop market. No euphoria yet.  There’s bullishness but there’s no euphoria.  Can people push it up to 50 cents?  We will know tomorrow and the next couple of days.

hype factor not yet in the euphoria level

#PHES

phes 5 years

5 years, it does nothing and then with enough push and pull, here and there, do we have a recipe for a rally to 50 cents at the minimum?  Let’s see.

Also based on transaction volume and value, 8M pesos ain’t at the decibel levels of euphoria.  Volume enters.  From the way I see it, there’s a large possibility these two gets a follow through.  Even if they consolidate, note that as long as they both trade above the 40 cents level, the bet against these basuras will still be skewed to the upside or that it just pauses.

phes net transactions

volume enters

*****

After a strong 30% rise, almost all who entered #WIN a day before at 26 cents and lower have flipped.  14 Mil only showed on the net long despite the 84M increase.  While the bulls are still intact (if your cost is 26 cents and lower), place your trail stops at 34 cents.

almost all have flipped

*****

There’s so many basuras that flew.  Others are asleep.  Some want to be noticed.  Check them out.  Note though that the basura index traded value usually tops out when it’s going haywire.  The clue is 3000 trades and usually well over 100M pesos.  When it gets to that level, people want to cash in and take their profits 😀

basura for oct 21

Net Foreign Selling is P407M/6.9 Bil 

#RRHI – surprisingly -63/124 but closes up at 63.50

#PGOLD – still can’t find its bottom. Mandarin who bought a lot at 32.50 seems to be cutting which is why we have -7/56M and new low at 31.50 (Well support is at 30 anyhow and stocks generally will consolidate and still continue trading basuras)

#ALI -245/424 closes at 32.10 (Will wait to see if 30 bucks support can happen.)

*****

Generally I wasn’t even looking at blue chips at all.  Spent entire day just day trading, flipping and holding on to some basuras.

Everyone’s holding their cash, which is good so that we’ll be ready for blood one day.  For now, play basuras or sleep.

– Faceless Trader

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3 Responses to Oct 21, 2014 – Basurero Wonderland – Mad Dash for Trash

  1. Eri Mendz says:

    Love your insights good job i’m making my stops ready until the eventual fall. But for now follow the trend til it lasts lol.

    Like

  2. Bigsmen says:

    Never stop Dreaming
    So keep sleeping 🙂

    hope it will rise tom

    Like

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