May 15,2016- Uncovering the Strongest Stocks of Duterte’s Presidency via TradeApp

I use trading apps to facilitate my time. 

Today I will show you charts; graphs; and everything a trader needs to help him on his or her trading without needing any other software except TradeApp version 2

The first thing I do is to go to the monitor to give me an overview of what were the leading stocks that I should be taking notice of. 2D versus 5D suits me for my short term taste while the 5D v 20D is also something I look at for the swing trades that I plan to incorporate in my own portfolio. 

Here’s how they look like: 

We see ALT and UPM both as outliers easily as well as FOOD DD PXP ACR. 

Zooming in further ; we see JGS MEG BLOOM BRN WIN PNX

Do this on and on and keep zooming in to see the specific details that largely contributed to this rally. 
The logic when you’re trying to take advantage of the strong stocks is to check those green stocks that have not yet firmly gone ahead into the right hand side. Note how Ayala Corp; Xurpas first clustered on the left hand side – before zooming further up. 

Note too that SMPH from a strong green has gone yellow which means many traders have taken profits and that the 2 day run up was good enough for it to cycle again. 

So the trick here is to find out the blue stock that is about to go to the green hemisphere such that you’re able to maximize and ride with the strong stocks before they advance completely. You can see SMC starting to move to the right side 

One of the tricks that I use is to check the 5day versus 20 day. It’s a very good filter to check which are advancing ahead but not super strong to make it too overbought; notice DNL MPI EDC BDO CEB SM JFC also getting a lift to the right side. Thus I’d set these stocks in my shopping list especially if their charts are also breaking to the upside. 

One of my favorite filters as well are the foreign flows which are comfortably and easily seen through the Trends Tab using Foreign as the filter. Here’s how it looks. 

I check the largest foreign bought for the past 5 days giving me PGOLD JGS AC URC MBT SMPH 

I also look at the largest bought in the past 50 days to gauge what all the large funds have accumulated and will protect in case of any sell off which are JGS URC SMPH AP SECB AEV. 

Given that these stocks are very much liked by the foreigners – I make sure to put them on my watchlist tab and compare their price performances to see whether there’s some stocks that I can still buy given their foreign flow bias. 

It is very clear that foreigners have favored buying the JGS conglomerate versus URC by simply checking the price performance of the two. 

More importantly we are aware that holding companies were the first to rise and led the market upward. The laggards were the service and industrial. Property firms also advanced a lot. If we are assuming that the markets will eventually cycle and rotate; perhaps some traders will look at which companies in the services sector as well as industrial sector – that they can choose to buy given an overall strong market. Notable to see that mining has also been crossing upward (particularly the oil sector led by PCOR.) 

Given the things that we know ; here’s how my research using the app helped me with the following 

CEB appeared in my watchlist after technicals and fundamentals aligned. 

Volumes went up last Friday. 

Foreign flows reversed from negative to positive showing there could be a strong reversal that can help kick up the momentum. Note that the 52.49m peso bought last Friday was larger than the last 5 days. Given that foreigners generally buy 300mil peso worth of flows when they like a stock; it’s something I will generally look at.

Recent resistance stands at 99.5. Recent lows at 85.50/86.10. 

Given Fibonacci ; there’s a confluence of sellers at the 99-101 distance while a strong level of support at 88.5

Of course we have a better risk reward ratio if we wait for the market to pullback first. However that also assumes that the stock can fall first before advancing to our target of 100. See below the scenarios. 

We try to investigate a laggard such as URC In comparison with its conglomerate JGS given that URC is still a foreign flow top5 both in the 5 day and 50 day list. 

215 high; 199 low. What are the extensions?  We assume an extension of 1.618 or 240 as our estimated target profit while hoping for an entry near the 38.2% of the length of the last two days which stands at 208.80

Cutloss at the 78.6 retracement or 202.4

Due to the relatively low cutloss price ; URC is actually giving a high reward versus the risk ratio. I advise traders to compute this first before they attempt to enter the stock. 

A final check as well is the 1 year resistance at 219.8 so when placing targets – just be mindful of where the supplies are. 

What if I wish to search for a stock given the candlestick patterns? I wish to use as a filter the Bullish Engulfing pattern/ here are the results 

So there’s an improvement in these blue ticker symbols but they aren’t leaders yet. Maybe we can catch them before they get to the leader space.  With these 4; we choose MPI. 

Chart is clean. We go to the foreign flows and highs and lows. We do everything the same. 

High of 6.15; low of 5.57

Foreign flows rising as well.  We notice after an onslaught of 1b foreign sell for MPI In the cumulative 50 days past; it has had a 3 day consecutive foreign buy reducing the cumulative net foreign flow in the last 5 days to 8.5m

Basic logic here is we are looking to buy stocks where recent flows are foreign buy and larger than the last 5-20 days to assume that a continuation of foreign buying will lift this higher. 

We are on the verge of a possible breakout on MPI where advanced target extensions could lead to at least 6.50

The only way to make this work for the risk reward ratio however is to tighten the stop loss to the 5.80 level given that we are assuming a breakout. 

End of day , watch out for PSEI levels 

– sell near 7720 if we can get an extension move to that 1.618 level as well as buying near 7182 if we are trading short term as that can be the most oversold zone given the run up this past week. 

Cheers. 

-Facelesstrader