It's A Red Day!!!!

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source: www.bloomberg.com

Yes that is how we can describe today's Philippine Stock Market. Was checking the world markets last night and it seems today is not unexpected.

Are you new in the stock market?

Yes its a scary time, its a very depressing situation. After hours and hours of analyzing and tossing your coins a hundred times to make a decision whether to buy or not but finally bought the stock and now it is down to a jaw dropping 10% from your purchase cost.

Let's blame it again to Greece and to what ever happened out there with Mr. JP. 

But the question really is how should you look at this situation? Will you let yourself be drag by this depressing situation? Will you let this event ruin our day or even worse your weekend?

If you look at this as the worse day or the unluckiest day of your life others are so happy that they even jump up and down with joy because the stock they have been waiting has finally hit there entry price. 

Across the board all stocks are down brought about by the growing fears over in Europe again. Well The Philippine Stock Exchange may be down but we have seen it months back how it manage to go back to its feet. This could be a healthy correction thus it is as we call "buyer's time." 

So do you have extra cash? Let's shop! Or better yet wait a little bet and start buying very good and sound stocks when the stock market in general is bouncing back.

So how about you? How do you see this depressing red day? Leave your answers in the comment box.

An update with PSE's new website

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The last time I posted about PSE's new look it was kinda wack. (Click here for the post)

I have just checked it awhile ago and it seems the slow download and the features are fixed and working now. You can check it yourself by going to:

http://www.pse.com.ph/stockMarket/home.html

If your not comfortable with the new look you can click the "Click here to view the old website". But the new site has cool features which I do like. Hope you browse and check it for yourself. 

For any thoughts on PSE website's new look leave a comment below.

ONLINE BROKERS: FIRST METRO SECURITIES' PLATFORM UPDATE PART 2

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Other parts of the First Metro Securities' Quote tab update are below.

Broker info consist of Broker Rankings and Broker Activity for those who likes to follow broker activity. This is good to monitor foreign buying by foreign stock brokers like Macquarie, Daiwa, Deutsche and others.

Here we can see which stock a particular broker is stock piling which may give us an idea what will be next stock pick or sell

Market Stats simple widens the report we usually see in the home page like which stock is actively traded, top gainers, and top losers

And finally a snapshot of the PSEi in one page together with its sub-indices

Technical side: What are Candlesticks?

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source: http://www.candlestickpicks.com/

First of all lets know where Candlesticks came from. Let's borrow some history information from Investopedia.com

The candlestick techniques we use today originated in the style of technical charting used by the Japanese for over 100 years before the West developed the bar and point-and-figure analysis systems. 

source: http://optionalpha.com

In the 1700s, a Japanese man named Homma, a trader in the futures market, discovered that, although there was a link between price and the supply and demand of rice, the markets were strongly influenced by the emotions of traders. He understood that when emotions played into the equation, a vast difference between the value and the price of rice occurred. This difference between the value and the price is as applicable to stocks today as it was to rice in Japan centuries ago. The principles established by Homma are the basis for the candlestick chart analysis, which is used to measure market emotions surrounding a stock. Read more

The Concept of Candlesticks

source: http://stockcharts.com

A candle is formed as per above illustration. A candle has 3 parts: the upper shadow/wick, the body, and the lower shadow/tail. Relevant information as shown above correspond to the Open, High, Low, and Close information we get from trading.There are two basic candles one is the hollow candle(which is mostly green on other charting programs) and the filled/black candle(which is sometimes red in charting programs). 

A Hallow Candle is a bullish candle because it shows that the stock closed higher than its opening. Filled or black candle is a bearish candle indicating that the stock closed lower than its opening. Now the difference between the opening and closing can be seen in a candle's body length. An elongated candle means that the opening and the closing are far apart indicating a very high interest of the market. On the other hand a short body indicates a low interest and may even indicate that the stock is bound to consolidation.

Below is the candlestick chart of PSEi as of July 27, 2011 for our illustration:

PSEi as of July 27, 2011

As you can see above the green candle indicates a bullish trend from mid-June to the first week of July. Also if you noted in the end of June a successive long green candles led to one of the all time high of the PSEi with a sudden reversal indicated by the red candles but then it recovers with another series of elongated green candles that led to the 4506 finish of PSEi.

Candlesticks has become popular because it gives the stock analyst the feeling of the general market through the color and length of the body and shadows. In a glance one can see what is the market action and what is the likelihood of the next. The body of the candle generally indicates when a stock is bullish or bearish. The more it is elongated, the more it states how bearish or bullish it is. 

The wick or the tail also indicate at what price investors are willing to buy or sell. If the wick and tail is short it indicates that price action is within the range of the candle's body while longer shadows indicate that trading has gone beyond the range of the open and closing. 


Note: This is the first part of the topic regarding candlesticks. More postings will be made in the future.

  

Using Bloomberg.com for your stock charts and info need

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Just discovered this lately. We can use www.bloomberg.com to check on PSE listed stock.

Juts like Reuters.com it has some information a stock investor like you and me need in deciding which stocks to buy. 

Go to www.bloomberg.com and in the search button type in the stock code of the company you are interested in and add a colon followed by pm

 

 source: www.bloomberg.com

You can customized the chart by adding overlays and indicators like MACD, Stochastic, Relative Strength Index(RSI) and compare such stock to other stock of interest or stock of same industry by adding the stock code plus :PM in the add bar in the stock chart section.

PSE Website part 9: Basic Charts

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source: http://www.greekshares.com/ 

Now that you know how valuable a chart is lets check out the PSE website for some charts. You can go to the Chart tab in the information link of stock you are looking at, for illustration purposes lets use FGEN:

 The basic charts are the Price chart of the high, low, open and last traded price of the stock. Each is represented by a color. Usually the PSE opens the charts at a annual chart range.

In the left side you can see the Chart options. You can change the date range which are 6 month, one year and two year. Chart type could be Line, Bar, Candle Stick, and OHLC(Open-High-Low-Close)

 You can also chose what indicator would you like to view. Below the Price chart is the  Volume chart which represents the number of traded stocks for that period or time frame.

Two famous indicators charts are also shown: MACD and Stochastic. I am not an expert in Technical analysis but got this info from www.ehow.com regarding these two well known indicator charts:

MACD analysis
Observe the interaction between the fast and slow lines. When the fast signal line(blue line) rises above and crosses the slow MACD line(red line), it means buyers are starting to dominate and a trader might consider buying that particular stock. When the fast line falls below and crosses the slow MACD line, it means sellers are starting to dominate and a trader might consider selling that particular stock.

Stochastic Analysis
Look at the instances where the %K line crosses and rises above the %D line. This indicates point when you should buy the stock. And if you look at the instances where the %K line dips under the %D line, then this is a signal to sell.

What is the rationale for this method of stochastic interpretation? The %K line is above the %D line when the price is on the rise, and it lies below the %D line when the price is falling. And because stock traders aim to buy low and sell high, these crossings signal the appropriate time to buy or sell.

For another way to interpret the stochastic oscillations, observe when the %K and %D lines rise above .8 = 80% and dip below .2 = 20%.

When the %K and %D lines rise above 80%, many stock analysts recommend selling as soon as the lines dip back down below 80%. And when the %K and %D lines dip below 20%, analysts advise stock traders to buy once the lines rise above 20%.

PSE website: Company Stock Information Part 3

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Let's go back to China Bank's Stock information page.

Click on the Corporate Information link to learn more about the company you are interested. The link gives you a page full of information regarding the company like when did this company incorporated, contact information, the company's website, latest disclosures and reports submitted to SEC and PSE and much more.

Click the links inside this page. Use right click and chose open in new tab so that you can always go back to the same page that contains the Corporate information.