Philippine Stock Market Commentary as of January 28, 2010
The DJIA rallied at the latter part of the trading day stimulated by the Fed’s move to leave interest rates at current levels. The 10,000 level also proved to be a stable support and with indicators at favorably oversold levels, a buying opportunity has developed. The Phisix likewise rallied after lackluster trading in the first half of the trading day closing convincingly higher than its open and low for the day. The recent correction was welcome and mirrors the correction last June 2009. That correction formed the right shoulder of the bullish formation that initiated the six-month rally that ended early January 2010. Accumulation at this point is recommended as DJIA and Phisix supports held and indicators are still at oversold levels. The recent correction may be a new right shoulder and a continuation of the bullish formation we have cited in our first Philippine Stock Market Commentary. BUY.
Pymwymi Fund Performance
All stocks in the Pymwymi fund have been bought as of close of January 28, 2010 per BUY recommendation of that date.