Thoughts and action plan for the rest of the week

Reverse Head and Shoulder formation of index seems threatened. For positive thinkers, Index must bounce back Thursday and Friday to follow a cup and handle pattern instead. This is a chart that applies to our small market frequently. Definition here:

If both do not work then... we're on bear territory again, better to cut some losses and raise some cash.

Also noticed that Foreingerz, on some issues, are quietly scooping up shares that they initially (today and earlier in the week) wanted to bring down the price of. Perhaps they're doing some sort of "dump fake" that they hope locals will follow and then they can scoop up just in time for Moody's announcement. They more or less know the lead time of a country review by Moody's, so we should also be suspicious of their nasty da moooveess.

UNCLE SAM SAYS: YOU FOLLOW ME! 

although this representation is a misnomer since English, Australians, Singaporeans, Hongkonglanders et al, are also playing our PSE

If you're itching to make a trading bet...
it should be useful to check out a newsletter that tally Net Foreign Buying or Selling. Comm Ollie at Stockmarketpilipinas has such daily tally (check link on the side of this blog) on his paid THE HINT newsletter. From his tally, observe what was being accumulated actively, but went down more than 1-2% today. It means the foreigns may be starting to accumulate or ready their positions. Then look for disclosures and news which might be related to the negative price action. If there is no real negative news prompting it to go down, place a small bet. If it went down 2%, place another tranch. The stock should recover soon... in time for Moody Diaz???