Well, my last UCC’s are way back on Oct. 21, as many should know by now, I was sick with dengue.

Coming back today to the markets, I don’t really like what I am seeing. Hopefully, cobwebs are just clouding my sound judgment. The PSEi managed to close unchanged at 2908, but looking closely at the markets, the only contributors are MER (+29pts), PX (+12pts), FPH (+2pts) . Market breadth was really negative! Without the above 3, we would’ve been down 40+pts..

MER managed to gap up to P220, from a previous close of P188. I don’t really know how to play MER at this point. The only stocks right now that are really strong are these handful – PX, CPM, ANI, FPH, WEB, and AP, though almost all are looking overbought already as well.

The stocks that are weakest as of now is the property sector, but I wouldn’t really hurry on any purchases for now. The way I see it we could still likely see ALI at P9.10, MEG at P1.22~P1.24, FLI P0.70~P0.71 in the coming days/weeks…

Do stay on the defensive as of the moment. That’s all I can advise for now. If you happen to have been able to ride PX, CPM, ANI, or WEB at their lows, then a big congratulations are in order, and you may want to stretch your profits abit, but do take profits on any first sign of weakness.

FPH and MER could still probably hold their heads high with the recent “SY” factor in MER, and things should be on the conclusive end in the coming days/week as per Lopez disclosure.

All in all, I would stay on the sidelines on this kind of market, or maybe I am just too chicken as I have been away for too long. I really don’t know. In conclusion, I just have this to say, “if you really wanna play, go ahead – play, but just play it real safe from this point on.”

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