PSEi. The index is still moving sideways. Despite the 162 point drop in the Dow, the market was able to hold above support at 4,266.24. I wonder when the market will be able to decide which direction to take. 😛
Obvservations. If the market could be classified under a specific music genre (only for today), the market would be classified under the ‘Blues’. If it had a billboard top charts, then LPZ and FGEN would take the top two spots. LPZ formed a bullish engulfing with a breakout above its previous high of 5.05 to close the day at 5.11. FGEN formed a long white candle that signifies yet another breakout for the Lopez group. Syempre, hindi magpapahuli ang EDC. EDC looks like it’s trying to breakout from its short-term consolidation. Aside from the Lopez gang, MVP did some superstar moves on MER as well, opening at 238 and closing at 249. It hasn’t broken out of its range yet though, so let’s not get too excited. Even MPI had some play at first but it was not able to successfully breakout from its range. The setup is promising though. Short-term support at 3.45 and resistance at 3.53. MPI tried to break this resistance by reaching a high of 3.45 but was obviously unsuccessful at the moment as it closed at 3.48. Oh, I alsmost forgot. There’s a third group that went up today: DMC and SCC. Who ever said stock trading isn’t a team sport? Haha!
These stocks’ claim to fame did not last the whole day though.They only had one run up and stocks like FGEN, LPZ, MER, EDC were able to consolidate at their highs. DMC, MPI, and SCC were sold down. And then…drumroll please. Lolo came back to life and stole the whole market away.
Hmm…I mentioned yesterday that momentum setups are more likely to fail than to succeed. Let me rephrase that a little. Momentum setups will not move as fast and as smoothly as you’d expect. That is what I meant by momentum setups failing. So, the blues that moved up today, if you bought today, doesn’t that constitute a momentum setup/breakout play? Yes. But at the same time, you don’t want to get stuck positioning on a stock you don’t even know when or if it will breakout. Oh such dilemma. Lol!