The Philippine stock market faced the hardest wave of challenge in August, huge amount of foreign fund outflow was escalated due to the weakness in Asia. Of course, the Philippine is not isolated, whatever the activities in the region, it's always contagious. Since I have invested in mostly blue chips I did not intend to release neither lighten my position and cut loss. I view this correction as healthy and I have been waiting for this since June. But August was often categorized as ghost month so what do we expect.
The PSEi didn't hold the support of 6,100, today it drops by hefty 5%, and addition to the 6% drop last week after the flood. Heavily traded SM (_5.75%), MBT (2.19%), ALI (7.47%), AC (7.89%), MCP (12.30%), GLO (9%) and more. It's a bloody day, bleeding.
Looking on the bright side, I set aside 40% of my cash for this correction, it's been my strategy to be in healthy cash position at any given time. I learned how to tame and control my emotions on stocks investing, considering my long term experience in the play. Personally, I look forward for a support ground of 5,600-5,700 before I will enter again. This will help balance my position and to get a lower cost average on my selected issues. I continue to like EDC, AC, MBT, MEG, MPI, SMC, looking at the EDC chart, it shows strong support @ 5.50 and it's movement was flat for thee last 3 bloody days. While AC and MEG suffered heavy sell off, I like to view it as windows for an opportunity. Correction is good so far.
The index of 7400 was really a danger stage to enter, it was in June, some analyst are too optimistic viewing that PSEi may reach 10,000, I did not buy that proposition instead I lighten my position in June and stay watchful for the ghost month. Tomorrow, I will surely buy MBT as dividends ex-date is on Aug. 29 (30% stock), if MBT will detriorate by 30% and trimmed down to 70 or below, fine, it's worth to wait. Meg is another bet likewise with AC and MPI. I like to see SM @ 400 level before I will enter. Comparing SM and AC, which of the two will reap good harvest?
The PSEi didn't hold the support of 6,100, today it drops by hefty 5%, and addition to the 6% drop last week after the flood. Heavily traded SM (_5.75%), MBT (2.19%), ALI (7.47%), AC (7.89%), MCP (12.30%), GLO (9%) and more. It's a bloody day, bleeding.
Looking on the bright side, I set aside 40% of my cash for this correction, it's been my strategy to be in healthy cash position at any given time. I learned how to tame and control my emotions on stocks investing, considering my long term experience in the play. Personally, I look forward for a support ground of 5,600-5,700 before I will enter again. This will help balance my position and to get a lower cost average on my selected issues. I continue to like EDC, AC, MBT, MEG, MPI, SMC, looking at the EDC chart, it shows strong support @ 5.50 and it's movement was flat for thee last 3 bloody days. While AC and MEG suffered heavy sell off, I like to view it as windows for an opportunity. Correction is good so far.
The index of 7400 was really a danger stage to enter, it was in June, some analyst are too optimistic viewing that PSEi may reach 10,000, I did not buy that proposition instead I lighten my position in June and stay watchful for the ghost month. Tomorrow, I will surely buy MBT as dividends ex-date is on Aug. 29 (30% stock), if MBT will detriorate by 30% and trimmed down to 70 or below, fine, it's worth to wait. Meg is another bet likewise with AC and MPI. I like to see SM @ 400 level before I will enter. Comparing SM and AC, which of the two will reap good harvest?
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