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Finally, the DOW did what I had been expecting, which was to rebound from its current lows… The S/P looked to have fashioned out a bottom at the 1,039~1,040 levels, touching these levels two times this week alone. Remember that if we do rally up from here, this still instigates a higher low from that 1,010 (most recent lows).

Being able to do it on a Friday  weekend factor), closing at its highs and being able to return above that 1,060 level I previously mentioned as supports, momentum should be able to take the S/P to return to the 1,100 level early next week. Of course, we have to again digest next Friday’s August jobs data, but that will happen only not until later on the week.  Read more... (513 words, estimated 2:03 mins reading time)

As of press time, the DOW is currently down 100pts right at the opening gates, and S/P has also fallen below my personal 1,060 levels… Going into half hour into the trade, at exactly 10:00am ET, existing home sales which is the main culprit for today’s negative session is expected to be more than bad.

When that data comes out, I do expect the US markets to react positively irregardless of the results. I will not be surprised to wake up and see the DOW end up in the green.  Read more... (356 words, estimated 1:25 mins reading time)

THE US MARKETS

Of course, talking about the direction of the US markets is still relevant despite the recent decoupling state of our PSEi vis-a-vis the DOW-S&P…

Last week, I talked about the S&P testing the all important 1,060. In my records, last week’s test of that level is a PASS. Low for the S&P was right at 1,063 …The S&P passed the test this week, and my outlook for next week is for the markets to bounce right back to at least the 1,100 levels… currently we are sitting just above 1,070… The VIX for Friday’s trade made a gap to a high of 27, but quickly retraced to the 25 levels, despite the US markets relatively weak last Friday…  Read more... (790 words, estimated 3:10 mins reading time)

As the US markets rallied overnight by 3 digits, our PSEi took a stronger footing on the 3,500 levels; now targeting to punch through recent 3,539 highs. The close today is 3,534, so we are technically just 5-pts away from making another new high index wise.

Today, the banking, property and the Lopezes are still clearly in play.

MBT closed at P62.90 and is a stone’s throw away of recent highs of P63.50. MBT has always been the clear leader in the banking plays, and should still provide leadership, as new highs could be set as early as tomorrow.  Read more... (517 words, estimated 2:04 mins reading time)

Last night, the S/P flirted with the 1,060 levels, as it gapped down to as low as 1,069, but rallied back at the close. This together with the EURO holding fort at the critical 1.27 levels provide support on my theory that the US markets should hold ground for now, and head higher from here…

Remember that as long as we hold 1,060, then we are OK for the higher low-thingy… Now we have to get back above 1,090 at the least to have a chance at challenging that 200-day MA again… All things are pointing and painting a rosier picture from here on out.

Locally, our PSEi headed back to the 3,500 level. One thing I noticed about the market is the PLAYS have been rotating.. AND rotations have been the fast and the furious kind..  Read more... (522 words, estimated 2:05 mins reading time)

- – -> S & P 500 ANALYSIS

Heading into this week, the US markets are going into a very critical juncture. For this, I will be focusing my analysis on the more general S & P 500 (S/P).

In the bigger picture, the S/P looked to have found a bottom at the critical and psychological 1,000 level. It has since then rallied UP hard, but looked to have encountered resistance at the 1,130 level.

Question now is :  “Has the S/P formed a lower high at the 1,130 level and will now begin to trend down and break that 1,000 supports? ”

The current rally created a higher low at the 1,060 level. This level for me is the touch and go level, and is also the most important level to watch in the next few weeks or so.  Read more... (941 words, estimated 3:46 mins reading time)

As of press time, DOW is losing over 100-pts. The culprit being CISCO dragging down the tech heavy Nasdaq index, because it missed earnings estimates by $100m, but its stock is currently down over 10% and thus shaving over $4b in market cap for the tech giant… A little bit overdone, I would suppose…

To top this off, weekly claims got some disappointing surprise. Anyway, behind this all bad news, I expect to wake up and see a sea of green for all US markets heading into our Friday morning.

Locally, our PSEi seemed to have shaved off a ton of points, but it was ex-cash bound GLO of P40.00 that pave our index to touch below 3,500.  Read more... (411 words, estimated 1:39 mins reading time)