Philippine Stock Market Commentary

Philippine Stock Market Commentary for February 4, 2010

The DJIA has formed a new upward trend line commencing July 2009 to the present when the 10,000 support level held recently.  The ten-day intra-day DJIA chart also has a looming bullish formation that may send the DJIA up another 250 points in the next trading days.  Indicators are still at sold levels making current levels a buying opportunity.

It took two DJIA increases for the Phisix to follow suit and recover above our former 2,900 support level.  Our BUY call last Thursday, January 28, 2010 indicating an upcoming Phisix increase did not come to fruition immediately as the market was spooked by negative sentiment especially last Monday, February 1, 2010, when the 2,900 support level broke and a significant black candle formed.  Despite that, the last three days gave investors opportune time to accumulate below 2,900 thus maximizing their gains now.  There were four major attempts to break a resistance at the 2,920 level.  What formed at the end of the trading day was a bullish formation that may send the Phisix further up by 15 points the next trading day.  Like the DJIA, Phisix indicators are still at sold levels and indicating recovery once again.  Present levels are still a BUY.

Pymwymi Fund Performance

The Pymwymi Fund is down 0.5%, and the Phisix is down 1.6% from our  BUY call last Thursday, January 28, 2010.