Scanning the Philippine stock charts this Monday morning I see no decent low-risk high-reward trade or investment setups. The only thing I see as a positive for this week is the property index chart looks like it might be going to top out after completing a short term upside 5th wave. See the Philippine Property Index Chart and forecast outlook analysis below. The Philippine property stocks might have a move up, but the risk to reward at this point does not look that favorable. Nonetheless, as long as you have a tight stop-loss if you do take new buy long positions, you should be ok in case the market reverses on you.
Philippine Stock Market Index
After looking at the PSE index chart, it looks directionless and slightly to the downside right now. The markets seem to be in indecision mode right now. I’m betting another big selloff is in the works, but will just have to monitor the market and let it show more clues to the direction it wants to go.
Asian Central Banks
In Kuala Lumpur this last Saturday, the Asia Central Bankers were working together to deal with how they will deal with the financial crisis in the West and how it will affect Asia. Most Asia economies have not been affected that bad by the financial crisis in the West, because of their high currency reserves, very low credit leverage, and other positive factors, but countries that have big export industries especially to the west are seeing their growth forecasts cut and will be under more pressure than those countries not exposed to the USA and European export markets.
Philippine Property Index Chart Analysis
The Property Index Chart is showing a completion of a 4th wave corrective move of a primary uptrend since 11/21/2008. The move now for the index looks to be to the upside, possibly hitting 721.51, before it decides it’s next move up or down. I would suspect down after hitting the 5th wave above 685.33, but for how long and how much it’s hard to tell right now.
Click the Philippine Property Index Chart for a Larger View
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