PSEI looks bad today. If there is no intervention against the Goldman Sachs Fraud case, the index may return to 3000 before bouncing up.
As can be seen in the chart, 38.6% re-tracement is already breached. MACD is weakening and RSI just bounced off 70. These all points to breaching 50% retracement or, worse yet,the 61.8% retracement. This means the index may go down or sideways.
This is why I'm staying on the sidelines for now and left no stocks except for preferred shares which I bought for dividends. Such stock's price does not matter as long as the dividends pour in regularly.
April 20, 2010: PSEI closed 3,147.50 below 61.8% re-tracement of 3161. This could mean it is headed to 78% or -127% (3000 level) extension before starting to bounce up.
ReplyDeleteApril 21, 2010: PSEI closed above 50% fib of previous wave that is 3192. Let's hope 3223 is conquered so that we can say hello to 3300 level!!
ReplyDeleteThis is a premature declaration so beware! I only risked 50% of my funds but will be 80% once 3223 is gone.