Longneck’s UCC’s (Useful Chit-Chats) Nov 22 ‘09
November 21, 2009 by longneck
The last week saw our PSEi advance by 35 pts, and this is mainly attributed to the week on week P202-P228 advance of MERALCO. The banking sector as a whole was also very strong and aided to the ascent.
Technically, MER may have already broken out of its P226 recent high, closing at P228. But the real resistance is at P230, and it did break out of that even, touching a high of P232 last Friday. I expect MER to be strong again this coming week, and judging by the charts alone, this may even go as high as P270 and this alone could buoy our market this coming week. Do take note though that from the way I am seeing things, this recent MER play is not contagious to other Lopezes like FPH and BPC …
I underestimated the comebacking PX, and this even surpassed my target of P16.75 for the “bounce” play. I don’t have a clear read for PX at this point.
I expect funds also to be still in focus on the banking sector, but of course when compared to the third line sector, being a BANKER can get you sleepy and bored. I have talked about the banks in the previous UCC’s thoroughly and I will just leave it at that.
The 3rd line sector remains the driving force for local players to make it BIG. Of course, I can not make strong recommendations on these, as these plays do come and go, and when they GO, they sometimes don’t come back for you anymore. So what we should do is choose the ones who we think will STAY.
Personally, “from what I am hearing”, I do like ACR, this besides the fact that it has corrected from its P1.60 high, and although I expect some consolidation above Friday’s P1.20 trough, I do expect this P1.20 to hold. This can be bought IMHO on any weakness near this P1.20 …
Last Friday, I also picked up some cheap PAX, as I do believe it might be gearing up for a huge run, and this time I favor a pierce above the P4.00 levels.
JAP has his Magnificent 7-9..
Well, I do have my own version – My Magnificent 3, and their initials are P.I.P. (not PIP the stock, ok ?)..
Clue : if I had bought RCB instead of PNB, the initials would have been R.I.P., so I opted for PNB instead.. (joke) …
Happy weekend ALL!!!
what does IMHO stands for? thanks for the education, again.
imho – in my honest opinion …