With all the mining plays recently, and yes today, I never even bothered to look at our index. When I asked, my broker told me that we are almost at 3,000. What ????!!!!

Clearly, I underestimated the power of the PSEi bull. Today, our PSEi broke out into new highs territory out of the 2971, ending a shy 3pts away from the psychological 3,000.. Will we break above it? Well, it is looking that way now at this point. Looking at the bigger contributors, PX 19pts, MER 15pts, but what stood out today was the strength the banking sector exhibited.

PX now at P18.00 is nearing P20.00..  and is now looking to be MER when it was at P300. Clearly, PX is now really really overbought, and could be finally due for a correction. I would really be a seller now at this point for PX.

Other mining issues also shot up, and at the close our mining index again gained another 1,000+ points, with PX the sole contributor of that 1,000 (well, almost). WOW! Amongst the mining issues, NIhao broke out of P5.80 all time high. Geo also was strong at 0.89. CPM now above the P5.00 level. With PX and most of the others being overbought, I am expecting our mining issues to take a breather, esp if PX starts to correct.

So where does the buck rotate now? Do we still stick to these ‘jockeyed’ plays? Well, yes technically because they are the ones clearly in play. But do keep in mind that these are now all due for a correction, and ANY sign of weakness should be a tell tale sign to take profits and head for the exits first.

I don’t know the play in MER, as what I have pointed out the other day, re: “Lopez play being over for now..” — might have already manifested itself through recent price action.

On the other side of the fence, MPI an oversold counter continues its search for southward demise. Now nearing P2.50, do we buy , do we cut ? Well, I say we do nothing! Let prices stabilize first, wait for a reversal signal before re-entering. But hopefully the tsunami that had started near P3.00, could find its closure at P2.50…

Today, I bought an erstwhile banking laggard at P36.00. Bahala na si Papa Henry sa akin.. hehe!

Well, usually what follows banking is property, and let’s hope another laggard AC might catch up with its peers, as I feel AC and TEL are badly needed for this current leg. Good luck, and stay safe !!!

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