Daily Charts seems to be ok, with U.S. getting hammered each day, the PSE goes on the positive side inch by inch, I have highlighted the blue line on a note that PSE broke out of its 4430 resistance, but there are 2 possible ways here:
1. Bullish people attempting to break out on a huge candlestick to confirm the breakout. But no one is convinced for momentum traders to buy in, since market is priced higher. but a good breakout will surely lead this to 4600 level( see weekly charts below)
2. The Bearish people (who wants to short the market- Im one of those), is trying to heavyweight the bulls and avoid the breakout to the 4500-4600-4700 level. (I wish shorting is legalized, as there is no making of money for "long ones" - Tsupitero). At the end, there is a possibility that the blue resistance may form a False Breakout pattern.
Daily charts looks overbought and is in NEGATIVE Divergence. Basura stocks and minings are in place where money is moving around, what if no other bluechips player goes back to this high market.
It is easier to play on the ground with lots of people, rather than attempting to go up in the sky where planes and birds fly roughly around.
HOLD and sell at unexpected rallies, especially the 20x ratio ones.
Looking into the Weekly PSE Charts, we can see that overall it is still uptrend, but my concern is that, U.S. and Europe and asian countries, battling for a breakout, then PSE is just like playing Basketball with no opponents on the other side, still reighning the 52 week highs, not to mention all time highs.
There is a small chance of a "BULL TRAP" in here, although im not saying it will happen, there is a probability when all people are only enable to buy and buy and buy, legalize Short Selling, and we will see a healthy market like the U.S. where 10% Correction in a month is possible, and resumes a 10% rally in a month also, a tradable market.
HOLD and watch for the WEAK RSI AND MACD, Negative Divergence on this Weekly Charts. Might mean something..
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