Monday, August 5, 2013

Portfolio Management and Status 8-6-2013

For those who are asking about our current porfolio management. We took profits on the 6800 level on some of the conglomerates and energy stocks. Especially FGEN and SMPH which we have bought around 16.xx and 14.xx respectively, we did not unload them all for the reason that PE looks good and business is strong.

For Banks, we are upset on the turnaround, even most of them reported good earnings for Q2. We were just able to unload 25% of our new purchases last May-June due to minimal trading gains.

Some reasons that we unloaded during the 6800 levels are:

1. 6800 area is 61.8% retracement of the correction
2. 6800-6900 level is the strongest resistance needed to break through before we are able to meet the 7000 level.
3. US was not likely to breakout to new highs (but it did on a small note)
4. US Elliot Wave count suggests that a possible 5-12% correction is nearing soon.

PESO:
From our maximum Equity exposure on June 2013 (70% Equity, 30% Cash)
- We unloaded and became (45% Equity, 55% Cash)

DOLLAR:
From our maximum Equity exposure on  June 2013 (85% Equity/Bonds, 15% Cash)
- We are continuous on unloading our US/Asia Equity, and US Bonds. We are chasing to unload US Bonds for almost on a daily basis for the reason that interest rate hike could trigger soon, to avoid possible losses. (50% Equity/Bonds, 50% Cash)

Strategy:
- Since we are anticipating a good correction is due again, or possible spark in interest rate hike that could rattle the markets. We are waiting for the sideline for US Equity to calm down since it made new All Time Highs just last week.

- PSE - will buy back near 6200-6300 level, or if it breaks down, we will anticipate a double bottom at 5700-5800
- US - will buy back Equities and Bonds when it corrects soon.

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