Do you still doubt that you could earn money online (internet)? Heard of Google Adsense but is so skeptical or just so hopeless with it? That’s what I’m thinking for about 2 yrs and 6 months! Well, not now, just received my first google adsense payout thru Western Union. Finally, I can say that it’s true!

Thanks to google for such great advertising and publishing program. This is one passive income that anyone can have! I know, there are many out there who are earning big bucks thru google adsense, they are just so lucky enough to be receiving every month with thousands of cash or even becoming an instant millionaire-passive income.

What is Adsense?

AdSense is an ad serving application run by Google Inc. Website owners can enroll in this program to enable text, image, and more recently, video advertisements on their websites. These advertisements are administered by Google and generate revenue on either a per-click or per-impression basis. Google beta tested a cost-per-action service, but discontinued it in October 2008 in favor of a DoubleClick offering (also owned by Google).- Wikipedia

How it Works?

• The webmaster inserts the AdSense JavaScript code into a webpage.
• Each time this page is visited, the JavaScript code uses inlined JSON to display content fetched from Google’s servers.
• For contextual advertisements, Google’s servers use a cache of the page to determine a set of high-value keywords. If keywords have been cached already, advertisements are served for those keywords based on the AdWords bidding system. (More details are described in the AdSense patent.)
• For site-targeted advertisements, the advertiser chooses the page(s) on which to display advertisements, and pays based on cost per mille (CPM), or the price advertisers choose to pay for every thousand advertisements displayed.[9][10]
• For referrals, Google adds money to the advertiser’s account when visitors either download the referred software or subscribe to the referred service.[11] The referral program was retired in August 2008.[12]
• Search advertisements are added to the list of results after the visitor performs a search.
• Because the JavaScript is sent to the Web browser when the page is requested, it is possible for other website owners to copy the JavaScript code into their own webpages. To protect against this type of fraud, AdSense customers can specify the pages on which advertisements should be shown. AdSense then ignores clicks from pages other than those specified.

-wikipedia

What niche to target?

Personally, on my observation, it’s best that your site caters to a certain niche. Example: sites dedicated solely about money, credit, cars, travels and hotels, food, celebrities, religion, gadgets, book reviews, etc. It has something to do with relevant contents that you publish in your site. Some niches mentioned above might generate high-paying ads.

So far, sites with contents related to financials, health, cars and credit cards have high cost per click ads. Of course, it’s important that your site has high traffic or the number of visitors that might stumble or be directed to your site. The many visitors/readers, the greater chance that they will click on our google ads with related topics on what they search online. It’s good to maintain a good content and utilization of certain keywords.

How to utilize keywords?

If you have travel a site, you may explore the use of keywords related to it such as travel, tours, hotels, hostel, trip, vacation, flight, tourist, destination, etc. Many people are searching these terms in google.
You have to observe on what they call Keyword density. This means the many times you use the keyword in your article. It’s computed by dividing the total number of keyword used over the total number of words in the article. It is recommended that you maintain a 3% keyword density. Example, the word: travel. It should appear thrice (3x) in article of 100 words.

It’s suggested that the word may appear in the first sentence of your paragraph, anywhere in your middle paragraph, and in the last sentence of your last paragraph. Basically, just fairly distributing the keyword all throughout the article.

This is just one of the many Search Engine Optimization (SEO) techniques in making use of google adsense. Just simply have your own site on a particular niche. Learn the basic of adsense and it’s techniques. Voila! You have now your own passive income online thru google adsense. Will be discussing more on SEO and adsense tips and secrets to be shared to you. Good luck!

-Bullish Trader

Let me feature the new US Chairman of the Federal Reserve, Ben Bernanke.

He is a co-author on books about economics such as Macroeconomics, Principles of Macroeconomics, Principles of Microeconomics, etc. and author of the famous Essays on the Great Depression.

Ben Shalom Bernanke (pronounced /bərˈnæŋki/ bər-NANG-kee) (born December 13, 1953) is an American economist, and the current Chairman of the Board of Governors of the United States Federal Reserve. Bernanke succeeded Alan Greenspan on February 1, 2006. He was re-appointed by President Obama in 2009 as the Chairman of the Federal Reserve.

Bernanke is particularly interested in the economic and political causes of the Great Depression, on which he has written extensively. Before Bernanke’s work, the dominant monetarist theory of the Great Depression was Milton Friedman’s view that it had been largely caused by the Federal Reserve’s having reduced the money supply. In a speech on Milton Friedman’s ninetieth birthday (November 8, 2002), Bernanke said, “Let me end my talk by abusing slightly my status as an official representative of the Federal Reserve. I would like to say to Milton and Anna [Schwartz, Friedman's coauthor]: Regarding the Great Depression. You’re right, we did it. We’re very sorry. But thanks to you, we won’t do it again.”^[21] Bernanke focused less on the role of the federal reserve, and more on the role of private banks and financial institutions^[22]. Bernanke found that the financial disruptions of 1930-33 reduced the efficiency of the credit allocation process; and that the resulting higher cost and reduced availability of credit acted to depress aggregate demand, identifying an effect he called the financial accelerator. When faced with a mild downturn, banks are likely to significantly cut back lending and other risky ventures. This further hurts the economy, creating a vicious cycle and potentially turning a mild recession into a major depression.^[23] Economist Brad DeLong, who had previously advocated his own theory for the Great Depression, notes that the current financial crisis has increased the pertinence of Bernanke’s theory. ^[24] -Wikipedia

Other relates stories:

President Barack Obama nominated Ben Bernanke to a second term as chairman of the Federal Reserve System. Barring a rejection by the Senate, Mr. Bernanke will retain his title as the fourteenth Fed chairman on February 1, 2010.

Consider Mr. Bernanke’s track record against his stated goals as Fed chairman. In opposition to his predecessor, Alan Greenspan, Bernanke said that he would communicate clearly and openly with the investment community. This, he said, would remove an element of uncertainty for investors.

However, it didn’t take long for him to do an about-face on this issue. He learned that even the smallest utterance could shake markets. Today he embraces the jargon and ambiguities of his forerunner.

More troubling, Bernanke has overseen the most comprehensive lending facility ever undertaken by a central bank. During last year’s crisis, the Treasury initiated the Troubled Asset Relief Program (TARP) with the approval of Congress. The $700 billion program was soon dwarfed by a further $788 billion in loans to the banking system made by the Fed, plus another $474 billion in lending directed mostly at the purchase of Fannie Mae and Freddie Mac bonds.

The additional lending operations in excess of the TARP have thus far been veiled in secrecy. Mr. Bernanke’s calls for increased transparency have been completely forgotten. Some recipients of these funds, notably Citigroup and American International Group (AIG), have admitted to accepting the Fed loans. Others have been less forthcoming.

This pattern of concealment caused Bloomberg News to formally file a federal lawsuit seeking full disclosure of these activities on November 7 of last year. On the same day his nomination for reappointment was announced, Mr. Bernanke’s Fed was ordered by a federal court to release the information regarding recipients of its lending operations in compliance with the Freedom of Information Act. -Mises.org

THE PHILIPPINE American Life and General Insurance Co. (Philamlife), the largest insurer in the country, has acquired a controlling stake in Ayala Life Assurance Inc., a move that will allow the former to sell its products in branches of the Ayala-led Bank of the Philippine Islands (BPI).

In a statement, Philamlife said the purchase of a 51% stake in Ayala Life, the life insurance subsidiary of BPI, must still be approved of regulators.

This was part of its strategic bancassurance joint venture with BPI, the third largest lender in the country in terms of assets, the insurer said.

The joint venture will allow Philamlife to gain a stronger presence in the bancassurance business, allowing the cross selling of its insurance products in BPI’s 800 branches.

Ayala Life, the seventh largest insurer in the country, will in turn become the platform for BPI and Philamlife’s joint venture.

Officials were not immediately available for details such as the amount involved in the deal.

BPI Capital and ING acted as financial advisors to BPI, while Deutsche Bank acted as sole financial advisor to Philamlife and the American International Assurance Group (AIA).

“The joint venture is expected to benefit from the combined synergies, first-class resources and strength of two leading companies in the Philippines’ financial industry,” Philamlife said in a statement.
Read more …

August 27, 2009-We are looking forward in buying some shares of Lepanto Consolidated Mining Co. (LC) as the price is ranging from  0.27 to  0 .29 this week! It will be a buy signal if it’ll go down to .26 or even at .27. The highest price LC has reached in a 30-day period is 0.32 and it’s lowest is at 0.175.

Buy LC shares now! Board lot is 10,000 shares. Target to sell LC shares at 0.40!

BUSINESS PROFILE

Lepanto Consolidated Mining Company (LC) was incorporated in 1936 and operated an enargite copper mine until 1997, after which, LC shifted to gold bullion production through its Victoria Project. LC also operated a copper flotation plant from August 2000 to December 2001, and restarted it in late 2006. LC sells its gold and silver bullion production to Heraeus Ltd. (Hong Kong) while its copper concentrate production are sold through Trafigura Beheer B.V. Amsterdam and Shanghang County Jinshen Trading Co., which are metals traders based in New Jersey, USA, and Fujian, China, respectively.

LC and its subsidiaries are involved in other businesses such as hauling, diamond drilling services, insurance, and manufacture of diamond tools. LC has two Mineral Production and Sharing Agreements for areas located in Mankayan, Benguet. The company’s subsidiaries are Shipside, Inc., Diamond Drilling Corporation of the Philippines, Lepanto Investment and Development Corporation, Diamant Boart Philippines, Inc., and Far Southeast Gold Resources, Inc.

Source: SEC Form 17-A (2008)

Happy Trading!

-Bullish Trader

August 26, 2009- I was able to materialize profit today when I sold all my shares of PETROENERGY RES. CORP. (PERC) at P7.50 when I bought it a few weeks ago at P5.60. That’s 32% rate of interest in almost 3 weeks!

It rallied today! The lowest trade is at P6.20 and the highest is at P7.60. The price of P7.60 is the highest it reached within the 30 day period. Well, not bad for moi when I traded my PERC shares at P7.50. It’s profit-taking day for moi!

Its closing price is at P6.80! I will be waiting for it to go down in the next days to come so I could buy it again at a lower price. The news is still helpful. PERC will be a good one to start with!

BUSINESS PROFILE

PetroEnergy Resources Corporation (PERC), formerly Petrotech Consultants, Inc., was organized on September 29, 1994 to provide specialized technical services to companies exploring for oil in the Philippines. On June 25, 1999, the Department of Energy authorized the assumption by PERC of Philippine oil exploration contracts. The Ministry of Energy of Gabon, Africa had also been duly notified of the transfer to PERC of a Production Sharing Contract covering the Etame discovery block in the Atlantic shelf.

The principal properties of PERC consist of various oil areas located in the Philippines and in Gabon, Africa. PERC’s local Service Contracts are located in Northwest Palawan, Offshore Mindoro and East Visayan Sea. PERC derives its revenues from its Gabon operations. The Philippine contracts are in the exploration stage and some contracts are being farmed out to reduce risk inherent to the business.

Source: SEC Form 17-A (2008)

We collated and researched online on the different definitions of Mutual Fund. Here:

What is a Mutual Fund?

A mutual fund is a professionally managed type of collective investment scheme that pools money from many investors and invests it in stocks, bonds, short-term money market instruments, and/or other securities.^[1] The mutual fund will have a fund manager that trades the pooled money on a regular basis. The net proceeds or losses are then typically distributed to the investors annually

- Wikipedia

***

A mutual fund collectively pools money from individual and corporate investors. These funds are managed by a professional fund manager who invests the money in stocks, bonds, money market instruments, and/or other securities. The mutual fund earns in two ways: from the capital gain (increase in value) of the security and dividend or interest income. These proceeds, net of whatever charges and expenses, are passed along to the shareholders. The value of a share of the mutual fund, called the Net Asset Value (NAV), is calculated daily based on the fund’s total value divided by the total number of outstanding shares.

There are mainly four types of mutual funds in the Philippines: stock (or equity), bond, balanced, and money market.

-Pinoymonetalk.com

***

Mutual funds are similar to UITFs or Unit Investment Trust Funds, to make investment much simpler, more accessible, and more cost effective for small investors.

The sale and trading of mutual funds, stocks, and bonds is regulated by the Securities and Exchange Commission (SEC), a government agency that protects investors from fraud and theft. However, the value of your investment in a mutual fund (or an individual stock or bond) is not guaranteed by the SEC or by any other government institution.You can lose money on a mutual fund investment — in an extreme case, even all your money. However, the safety track record of most mutual funds is quite good.

-Investingpinoy.com

Advantages in Investing in a Mutual Fund

Mutual funds provide a combination of benefits to investors which cannot be matched by other investment instruments. These advantages are as follows:

Professional Management

Full-time professional managers are the ones who manage the mutual funds. Their job is to analyze the various investment products available in the market and select those that would give the best possible returns to the fund and its shareholders.

Low Capital Requirement

A minimum investment of Php1,000 to Php5,000 is enough to start with. Most mutual funds in the Philippines require a minimum initial investment amount of only Php5,000.00 and minimum additional investments of Php1,000.00.

Diversification

There is a saying that goes, “Do not put all your eggs in one basket.” This adage is especially true in the world of investments which is full of uncertainties. There is no such thing as a “sure” thing. Diversification is the key to manage risk. When people invest in a mutual fund, they achieve instant diversification because the fund is usually invested in a wide array of securities.

Liquidity

Liquidity is the ability to readily convert investments into cash. While the law provides that redemption proceeds must be given within seven (7) banking days from the date of the redemption request, most funds are able to pay the redemption proceeds within a day. Mutual funds are, therefore, considered very liquid investments.

Safety

Mutual funds are highly regulated by the Securities and Exchange Commission under the Investment Company Act and its implementing rules. They are prohibited from investing in particular investment products and engaging in certain transactions (this is discussed in greater detail in a latter section). All of the fund’s assets must be held by a custodian bank for a safekeeping.

Potential Higher Returns

Because a mutual fund is managed as a single portfolio, it is able to take advantage of certain economies of scale. For instance, with its millions under management, it can negotiate for lower stockbrokerage fees or command higher interest rates on fixed-income investments. In the end, however, it is still the investment adviser who really makes the big difference between making direct investments and investing in mutual funds because very few individual investors can match the experience and skill of full-time professional fund managers.

Convenience

In other countries, mutual funds can be purchased directly from a funds or through a broker, financial planner, bank or insurance agent, by mail, over the phone and increasingly over the internet. The popularity of mutual funds in the Philippines is fast catching up. It may be a matter of time for this level of convenience to be a reality in the country. Funds also offer a variety of other services, including monthly or quarterly account statements, tax information, and 24-hour phone and computer access to fund and account information.

-Pinoysmartsavers.com

Our Mutual Fund

Our current mutual fund is Philequity. Why? We made researches and it’s so far one of the best mutual fund to invest in the Philippines. It got lots of awards and recognitions in the financial field and as an investor of Philequity, I’m in deed very satisfied with it.

You may visit PSE for the list of mutual funds you might want. As an advice, know the company first, before putting your money in it.

-thegetwealthy.com

LINKS:

Wikipedia

Pinoymoneytalk.com

Investingpinoy.com

Pinoysmartsavers.com

GetWealthyIn

PhilEquity

Market poised to resume its upward move

LOCAL STOCKS are likely to resume their rise this week, boosted by an extended rally in Wall Street and the scheduled announcement of the country’s growth rate for the second quarter, analysts said.

“Players will take their cue from Wall Street’s recovery during the long weekend…,” 2TradeAsia.com said.

The American Int’l. Group, Inc.’s plan to repay the US government’s lifeline and a 7.2% month-on-month and 5% year-on-year increase in sales of existing homes sent Wall Street stocks jumping on Friday, after rallying for the past three days.

The Dow Jones industrial average soared by 1.67% or 155.91 points to 9,505.96. The Standard & Poor’s 500 index rose by 1.86% or 18.76 points to 1,026.13 while the Nasdaq composite index climbed by 1.59% or 31.68 points to 2,020.90.

Local financial markets were closed on Friday because of a holiday to commemorate the slaying of Senator Benigno “Ninoy” Aquino, Jr.

The Philippine Stock Exchange index closed the week lower by 4.8% on Thursday, finishing at 2,720.18.

DBP-Daiwa Securities, Inc., meanwhile, said it expects the composite index to consolidate with an upward bias given improving economic fundamentals.

The government is due to report the gross domestic product (GDP) growth for the second quarter on Thursday.

Jun Calaycay of Accord Capital Equities Corp. said the government’s expectation the local economy grew between -0.1% and 0.9% with a contraction “possible but unlikely” has helped investors prepare for the worst.

“From the fundamental standpoint, the [government] has already conditioned the minds of investors of the possibility of a slow second-quarter [growth].

“This should tilt the market’s reaction to positive — in case the ’possible, but not likely’ scenario plays out,” he said.

Thus, the “play” for the second-quarter GDP is expected to have minimal downside, but with investors positioning for an upside should the result come out favorably, he said.

DBP-Daiwa Securities also pointed out: “earnings for April to June have shown significant progress as the average net income of stocks we cover rose by 35.1% quarter-on-quarter.”

“With this at hand, we think investors will continue to be encouraged by positive domestic developments…”

2TradeAsia.com, however, said some investors would check for momentum buildup before making their moves.

Should an upward momentum be absent, the online firm said they might opt to lock in gains during rallies.

For this week, “large caps under services, conglomerate, construction, property and banks might shine, along with shares that are sensitive to metal pricing movement,” 2TradeAsia.com said.

DBP-Daiwa Securities said it maintains its overweight stance on consumer-related stocks along with the media-related issues as these two have posted the most compelling results for the first half of the year, which it said could be sustained until the first half of next year due to election spending.

“We also reiterate our recommendation to buy on dips as basic economic fundamentals have shown improvement,” it said.

DBP-Daiwa Securities said the main index is seen trading between 2,675 and 2,800 this week.

Entry Credit: http://www.bworldonline.com/

My own take on the ebook as described by Netfutures.com and the-way-to-trade.com

Would really like to thank, Intelinvest Co. for sharing the ebook on Secrets of Millionaire Traders. For those who have no access to the ebook file, let me share to you what I’ve read and hope it will help those newbie traders! This source is a big help to me. I will be summarizing it into vital keypoints.

Introduction:

Only a few traders are successful yet some are earning a million of profits from stock trading!

There are rules that are already familiar to several millionaire traders and these are generated from interviews from them.

Let’s uncover these.

Rule 1 Use Money You Can Afford To Lose

- It must be the money we are willing to lose.
- We can’t use the money reserve for our family’s budget.
- Mental freedom or independence is important.

Rule 2 Know Yourself

- You must have the attitude of being unemotional or able to control emotions
- Must have an objective temperament as the market keeps on changing.
- Successful traders suggest that people who can’t control emotions look elsewhere for profits.

Rule 3 Start Small

- Begin to trade at a small amount
- Learn the mechanics of trading before going in for volatile contracts
- Note, big things start from small things

Rule 4 Don’t Over Commit

- Keep three times the money in your margin account than what is needed in your particular position
- It means if you trade P30, you must have P90 savings as your margin account.
- Don’t go beyond that rule.

Rule 5 Isolate Your Trading From Your Desire For Profit

- A successful trader is able to isolate his trading from his emotion.
- Hope is a great virtue in other areas of life but it can be a hindrance for traders.

Rule 6 Don’t Form New Opinions During Trading Hours

- Decisions during the trading day based on price change and news is disastrous for many
- Formulating your own opinion before trading opens is advised by successful traders.
- Sometimes, the ups and downs of the trading game might upset traders.

Rule 7 Take A Trading Break

- It’s good to take a break sometimes to give yourself a fresh look at the market when you get back.
- To see a better perspective in your trading lifestyle may be achieve after taking a break
- Everyday trading  makes you dull in judgment

Rule 8 Don’t Follow The Crowd

- Don’t go with what everyone is up to. You need a breathing room.
- If 85% of the analysts are bullish, this indicates an overbought situation. If less than 25% are bullish, this indicates an oversold condition
- Periodic government reports on the position of traders of various sizes provide “overcrowding” clues. Another clue is “contrary opinion”

Rule 9 Block Out Other Opinions

- Don’t get easily influenced by what someone says, it may change what’s on your mind
- Find someone who could give you logical reasons for a change in view
- Form your own basic opinion of the market

Rule 10 When You’re Not Sure, Stand Aside

- Don’t feel to trade everyday, it might be costly
- Develop discipline and patience to wait for an opportunity

Rule 11 Try To Avoid Market Orders

- Put specific price limit when buying or selling.
- Minimize the use of market orders

Rule 12 Trade The Most Active Month

- If you’re trading emini contracts, trade it on the nearest months. Like some are expiring on March, June, September, November, December. Most active a few days before expiry.
- For trading commodities like soybeans, trade at the highest volume and open interest. March, July and November are active months.
- Trade on high volume commodities so you could easily liquidate your position.

Rule 13 Trade Divergence With Related Commodities

- Watch the families of the commodities. Ex: soybeans, related to it might be grains, meat and metals,
- If all grains except soybeans were moving higher, the millionaire traders would look for an opportunity to sell soybeans as soon as the grains in general appeared to be weakening. The reverse of this is true also. The traders would buy the strongest commodity in the group during periods of weakness.
- Be detailed on the related products you are trading.

Rule 14 Don’t Trade Many Markets At Once

- Know your limitations and trade within your limits
- Listen to yourself and your capability

Rule 15 Trade The Opening Range Breakout

- If there’s a major break out with the price in a day, it will signal you the next price-decision making the next day or days to come

Rule 16 Trade The Breakout Of The Previous Day’s Range

- Buy if the price is below the previous day’s closing price
- Sell if the price is above the previous day’s closing price
- Just wait for a breakout of the market.

Rule 17 Trade A Weekly Breakout

- It’s similar to the daily rule but this one in on weekly basis
- Basing on the week’s high and low closing.

Rule 18 Take A Breakout On A Monthly Range

- Monthly basis in making decision gives you’re a broader view of the market
- Same rule applies to days and weeks

Rule 19 Build A Trading Pyramid

- Don’t add more stocks beyond your money capacity
- If you’re trading on 3 Bank Securities, you may add 2 then 1 after the other.
- Avoid “inverted pyramiding”, it will make you vulnerable!

Rule 20 Never Enter Your Position At One Price

- The important key is Market Action
- Never put your entire investment in only 1 stocks position not unless you’re sure with it
- Wait for the market to be in favor with you.

Rule 21 Never Add To A Losing Position

- Some traders don’t agree on this rule as they believe in “Price Averaging”
- It will Lead you to Rule No. 5 “Hoping”
- Don’t add or buy if it continues to give you losses.

Rule 22 Cut Your Losses Short

- Liquidate your position when the market is against you.
- Don’t hope for the market to turn in the favor to you

Rule 23 Let Profits Run

- Never take a profit just for a profit. It should be reasonable profit-taking.
- Some technical rules on reversals and formats may help
- Don’t cut profits short

Rule 24 Be Impatient With Losing Positions

- Never carry a losing position more than 2 or more days or over a week
- Force discipline on yourself

Rule 25 Learn To Like Losses

- Be a good trader, never fear losses
- Losses are part of the business
- Having the right attitude in accepting losses helps you gain emotional stability

These 25 Rules of Secrets Of The Millionaires may be a big help to you. You might agree or disagree on some keypoints, but here’s what I learn the most, DISCIPLINE.

Happy Trading!
-Bullish Trader

Links

netfutures.com
the-way-to-trade.com

Investors secure gains ahead of weekend

SHARE PRICES closed lower on Thursday after investors booked profits ahead of the long weekend, analysts said.

The benchmark Philippine Stock Exchange index (PSEi) slipped by 1.47% or 40.71 points to 2,720.18, while the all shares index shed 1.2% or 21.34 points to 1,744.29.

A total of 3.58 billion shares worth P4.25 billion were traded. Net foreign buying totaled P332 million.

Decliners led advancers 71 to 32, while 55 shares did not move.

“The trading week is shorter so it was already expected that investors [would not be] as aggressive,” 2TradeAsia.com said.

“Investors were also checking for ’momentum progression’ that was absent during the past trading days.”

The online brokerage noted there wasn’t enough buying momentum that would have encouraged investors to enter the market. In the past five trading sessions, for instance, the market rose only once and the gain was not even significant.

The composite index managed to gain 29 points on Wednesday on bargain hunting but this failed to prevent the PSEi from sliding. The index lost 4.77% week-on-week.

Jun B. Calaycay of Accord Capital Equities Corp. said investors also remain “sensitive” to market declines after experiencing a “big scare” last year when the market shed almost half of its value.

“[Yesterday] was also the first day of the ghost month. So traditional thinkers tried to avoid the market ahead of the long holiday, especially since Wall Street continues to be volatile,” he said.

Investors, Mr. Calaycay said, will monitor how the US market will do during the break before charting their next moves.

Wall Street closed higher on Wednesday after crude prices for September delivery jumped by 4.7% or $3.23 to close at $72.42 a barrel on the New York Mercantile Exchange. This was after the US government’s weekly inventory showed that crude oil supplies fell last week.

The Dow Jones industrial average rose by 0.66% or 61.22 points to 9,279.16 after investors scooped up oil-related firms on anticipation that demand for crude would rise.

The Standard & Poor’s 500 index added 0.69% or 6.79 points to 996.46, while the Nasdaq composite index rallied by 0.68% or 13.32 points to 1,969.24.

At home, however, mining and oil stocks led the losers, retreating by 2.33% or 190.54 points to 7,985.75.

Industrial stocks fell by 2.26% or 91.30 points to 3,944.18, while the service sector slid by 1.25% or 17.76 points to 1,397.08.

The property sector tumbled by 1.23% or 12.03 points to 964.72, while holding companies shed 0.87% or 13.33 points to 1,518.44.

Financial firms lost 0.1% or 0.64 point to 592.84.

Manila Electric Co. shed 5.31% or P11 to P196, while Lopez-led holding company Benpres Holdings Corp. dropped 5.26% or 20 centavos to settle at P3.60.

Benpres unit First Philippine Holdings Corp. slipped by 3.52% or P1.50 to P41, while Andrew Tan-led property company Megaworld Corp. was down by 3.12% or four centavos to P1.24.

Philex Mining Corp. declined by 2.43% or 25 centavos to P10, while index heavyweight Philippine Long Distance Telephone Co. dipped by 1.63% or P40 to P2,405.

Ty-led Metropolitan Bank & Trust Co. shed 1.33% or 50 centavos to P37, while Lopez-led Energy Development Corp. lost 1.14% or five centavos to P4.30.

Ayala Land, Inc. did not move at P9.70, while the Bank of the Philippine Islands stayed at P43.50.

Entry Credit: http://www.bworldonline.com

Bargain hunting ensues after downturn

SHARE PRICES closed 1.07% higher yesterday due to bargain hunting following a three-day downturn, dealers said.

The Philippine Stock Exchange index closed 29.34 points higher at 2,760.89. The all shares index rose by 1.07% or 18.79 points to 1,765.63.

A total of 2.89 billion shares worth P3 billion changed hands.

Advancers led losers 89 to 22, while 47 issues closed unchanged.

“Tomorrow, we expect the market to continue its reversal,” Ron Rodrigo of DBP-Daiwa Securities told Dow Jones Newswires.

Analysts also pointed out that the market’s rebound yesterday resulted from the US market’s recovery on Tuesday night.

“As expected, the market turned green due to the Dow’s recovery due to better-than-expected results of some retail companies and positive news about Germany’s economy,” said Daniel C. Picache of Papa Securities.

“This was inspired by recovery of the Dow in the US. It was just a relief rally from the profit taking in the past two days,” said Astro C. del Castillo of First Grade Holdings, Inc.

He added that speculation on some stocks because of rumored interest by specific parties also pushed the rebound.

The Dow Jones industrial average finished 82.60 points or 0.90% higher at 9,217.94 after a sell-off on Monday night.

The Standard & Poor’s 500 and the Nasdaq composite index similarly rose, each moving up a percent to 989.67 and 1,955.92, respectively.

Mr. Picache said late trading on Tuesday already gave signs of a rebound since there were already signs of bargain hunting especially on Lopez-led companies.

“But with a long holiday coming, it may lead investors to trim their positions. They may adopt a sell-on rally stance today, which may result in consolidation,” he said.

Mr. Picache placed the support level at 2,693 and the resistance at 2,984.

“The two-day correction already gave investors enough room to reenter the market… Buyers won’t be as aggressive as before though],” he said.

Mr. Picache noted there is still money on the sidelines since some investors were not able to get in when the market staged its run-up from the 1,800 level.

Mr. del Castillo said the market would probably hover at the 2,700 level as investors continue to digest numbers and look overseas for direction.

Mining and oil companies climbed the sharpest, going up by 3.47% or 274.52 points to 8,176.29, followed by property shares that rose by 2.39% or 22.79 points to 976.75.

Shares of service firms finished 20.15 points higher at 1,414.84, while holding companies inched up by 1.08% or 16.31 points to 1,531,77.

Industrial companies improved by 0.59% or 23.98 points to 4,035.48, while financial firms closed at 593.48, up 0.29% or 1.75 points.

Lopez holding firm Benpres Holdings Corp. climbed by 7.04% or 25 centavos to P3.80, while the Manila Electric Co. was flat at P207.

Market heavyweight Philippine Long Distance Co. closed 1.24% higher or P30 up to P2,445.

Banco de Oro Unibank, Inc., the country’s largest bank, went up 1.47% or 50 centavos to P34.50, while Ayala Corp. was steady at P297.50.

Harry G. Liu of Summit Securities, Inc. said that with the market having reached its targets, its direction would be dictated by market movements abroad.

“[What’s happening is] base building for the medium term so that the long term would catch up in anticipation that the global slide is improving,” he said. — AFP and Don Gil K. Carreon
Entry Credit: http://www.bworldonline.com

“Take profits” is what stock mavericks of absolutetraders.com is recommending! Although the PSEi is on a short correction mode, there is a positive way that it will be bullish on the next days to come!

The nearest level of resistance for PSEi is at 2890. The MACD (below) indicates a short sell for traders. Weeeh!

So, if you find a perfect time to sell you shares, go on before the final day of the ghost month will change your portfolios.

Rule: Buy low, Sell high!

Links:

www.absolutetraders.com

Happy Trading! – Bullish Trader

When I started to join the stock market last June 2009, I was advised by my mentor to buy Megaworld (MEG) and Manila Water Company (MWC) stocks. I initially acquired 5000 shares of MEG at P 1.12 and 100 shares of MWC at P 14. And on July 7, 2009, I stopped buying MEG shares as I don’t have funds anymore. Actually, just exhausted my salary payout with some stuff. As of August 3, 2009, I sold out all my shares of MEG and retained my MWC shares. In the span of 2 months, I got 30% profit/gain from what I initially invested for MEG. That’s why I got saving my money thru this scheme.

I acquired a total of 43000 shares of MEG at an average price of P1.092857 with a gross amount (excluding tax) of P 46,240. On August 3, 2009 at the peak of its high price when the local stock market seems bullish with its up trend in all major shares, I decided to sell all my MEG shares at P1.42 and it gives a gross total sale of P 59660. So that’s a 30% profit-taking!

Days after I sold all my shares at MEG, its NAV went down to 1.38 and below. Currently, I have invested the other proceeds in buying shares from Filinvest Land Inc (FLI), GMA Networks Inc (GMA7), Philex Mining Corporation (PX), Petroenergy Reserve Corp (PERC) and Meralco (MER).

As of the moment, still waiting for MEG to go down like P 1.20 and I will definitely buy lots of shares at one time!

Happy Trading!-Bullish Trader

US market slump drags down share prices

SHARE PRICES fell further yesterday, pulled down by the chain reaction of sell-offs that started in regional bourses in Asia on Monday on news that China plans to tighten bank lending, analysts said.

The benchmark Philippine Stock Exchange index closed down by 1.43% or 39.63 points to 2,731.55, while the all shares index slipped by 17.14 points to 1,746.84.

A total of 4.07 billion shares worth P3.19 billion changed hands. Decliners led advancers 72 to 33, while 55 did not move.

Jose Mari B. Lacson of Campos, Lanuza & Co. said the local bourse’s slide yesterday was caused by the decline in the US market, which itself was partly due to the weakening of regional bourses on Monday.

“The drop yesterday had a feedback loop… Markets in Asia performed weakly on Monday and it continued to the US and then affected us,” he said.

The Dow Jones industrial average finished at 9,135.34, down by 2% or 186.06 points. The Standard & Poor’s (S&P) 500 index gave up 2.43% or 24.36 points to end at 979.73, while the Nasdaq Composite index plunged by 2.75% or 54.68 points to 1,930.84.

Reuters reported that it was the Dow and S&P 500’s worst one-day percentage sell-offs since July 2.

Mr. Lacson said this was triggered by talks that the Chinese government would increase lending rates, signaling US investors to sell on concerns that the move would slow down that country’s growth.

The Shanghai stock exchange tumbled almost 6% on Monday, as investors grew anxious over the government’s plan there to tighten lending.

Oliver P. Plana of Asiasec Equities, Inc. said aside from the US market’s fall, the local bourse was also hit by the decision of foreign funds to sell their holdings, after the major companies disclosed their earnings.

Mr. Lacson agreed investors parted with their shares after the release of their first-half performance, which did not meet expectations.

“There are underlying concerns about the earnings in the Philippines since some of the reports were below expectations and cautions were made that the worst is not over… The sentiment is really to take profits so unless we see something that could change that, the selling would continue,” he said.

Mr. Plana noted that there were signs that some major markets in the region are improving, which could prop up local trading.

“The next major macro announcement is the [economic growth results for the first half on Aug. 27]…. So investors would observe day-to-day developments to guide them,” he said.

Holding firms were the only ones to end in green, inching up by 0.04% or 0.73 point to 1,515.46.

Mining and oil companies lost 1.91% or 153.65 points to 7,901.77 followed by service firms, which gave up 1.89% or 27.01 points to 1,394.69.

Shares of financial companies slid by 1.09% or 6.50 points to 591.73, industrial firms declined by 1.08% or 43.96 points to 4,011.50, and the property sector dipped by 0.78% or 7.53 points to 953.96.

Index heavyweight Philippine Long Distance Telephone Co. lost P55 or 2.23% to end at P2,415, while competitor Globe Telecom, Inc. shed 2.02% or P20 lower at P970.

Metropolitan Trust Bank & Trust Co. was unchanged at P37, while Sy-led Banco de Oro Unibank, Inc. declined by 1.45% or 50 centavos to P34. The Bank of the Philippine Islands eased by 2.19% or P1 to P44.50.

Jollibee Foods Corp. moved up by 1.96% or P1 to P52.

Entry Credit: http://www.bworldonline.com

Prices tumble after investors cash in gains

SHARE PRICES closed 2.77% lower yesterday, hurt by weak US sentiment and investors cashing in ahead of the part of the lunar calendar that the Chinese consider unlucky, dealers said.

The benchmark Philippine Stock Exchange index lost 78.83 points to 2,771.18, its lowest level in three weeks, while the all shares index gave up 43 points or 2.38% to 1,763.98.

Turnover reached 3.94 billion shares worth P3.23 billion, with 114 issues down, 16 up and 24 unchanged.

“US consumer confidence was weak, and while Japan’s economy improved, there was still a negative spin to it,” Jose Vistan of AB Capital Securities told Dow Jones Newswires.

He expects further consolidation with the start on Aug. 20 of the so-called Chinese “ghost” month that is usually a slow period for Philippine equities.

Jasper M. Jimenez of BDO Securities said profit taking was evident in the huge discrepancy between losers and gainers.

“That’s [a reflection of] the sentiment now. Some investors were already expecting this last week but the market continued to be resilient,” he said.

He also pointed out that the fall in Wall Street stocks on Friday contributed to yesterday’s turnout. “It was also partly a reaction to the performance of the US market last Friday,” he pointed out.

US stocks closed lower on Friday on a report that consumer confidence fell in August. The Dow Jones industrial average lost 76.79 points to 9,321.40.

Eunika B. Maloles of 2TradeAsia.com said the market’s fall yesterday was expected especially since the mining and oil sector had a steep climb last week.

“There was broad-based profit taking and correction in all sectors led by mining since its run-up was steep last week, she said.

Mr. Jimenez said the bourse may remain at its current levels, with no fresh leads to perk up trading and with August historically a slow time for the market.

“I don’t expect the bourse to move up significantly. The market bias is really negative,” he said.

Ms. Maloles also expects lukewarm participation among investors this week due to the absence of leads and a shorter trading week.

The market will be closed on Friday in observance of martial law-era hero Benigno S. Aquino, Jr.’s death anniversary.

Ms. Maloles, however, noted that the bourse’s steep fall yesterday may prompt a rally within the week.

“The decline yesterday was pretty sharp, so we could expect a rally the next few days… We need this correction though to further push up the market in the medium term,” she said.

Mining and oil companies had the sharpest fall, tumbling 3.52% or 293.69 points to 8,055.42 followed by industrial firms, which dropped by 3.14% or 131.36 to 4,055.46.

Property shares lost 3.02% or 29.96 points to finish at 961.49, while service companies declined by 2.98% or 43.65 points to 1,421.70.

Holding firms dipped by 2.31% or 35.80 to 1,514.73, while financial stocks slipped by 1.82% or 11.06 or 598.23.

Ayala Corp. lost P7.50 or 2.4% to finish at P300, while units Bank of the Philippine Islands and Ayala Land, Inc. finished 50 and 20 centavos lower, respectively, at P45.50 and P9.40.

The country’s largest bank, Sy-led Banco de Oro Unibank, Inc. shed 1.43% or 50 centavos to P34.50, while SM Investments Corp.’s shares dipped by 2.31% or P7.50 to P317.50.

Index heavyweight Philippine Long Distance Telephone Co. lost P75 or 2.95% to end at P2,470.

The Manila Electric Co., on the other hand, shed 3.59% or P8 to close at P215. — AFP and Don Gil K. Carreon

Entry Credit: http://www.bworldonline.com

When I first engaged myself in the world of stock market, I have lots of questions and apprehensions. That’s when I tagged myself as a “newbie”. Certainly, I’ve been wanting to know how to trade and invest money thru stocks when I was in the university but never get the chance to have a hands-on training or sit with a stock market expert.

I learned much on financial education and how money works for me just early this year, 2009 when I joined the great people at International Marketing Group (IMG). This is the time I know that financial security is a priority for everyone. Hence, I came to value the worth of my money, investing it to where it could earn double or triple or more. That’s money working hard for me!

Confuse on where to invest your money where it could earn more at bigger interest rate still an issue? No worries, I will share my experiences in where I invested my money.

Point 1

First to consider is to secure yourself, which is, SAVING for your future. It is important that you have LONG-Term Healthcare, Life Insurance, and Investment. Just these three!

*Healthcare – the very basic and first to secure. Why? To get sick is really expensive. People who don’t have healthcare but have lots of money in the bank will just exhaust their savings just to pay for their medical expenses. You don’t want to touch your savings or income right? Then get a healthcare program that will pay your hospital bills and medicare if the need arises. Philhealth is not just enough (for Pinoys). Your savings are still intact if you get your own personal healthcare!

*Life Insurance- if you’re the breadwinner of the family and in the event that you lose your job or death cut your life short, the family you left behind could still continue their living as Life Insurance companies will give the coverage benefits to them. Or when you get disabled and you can’t function doing your normal job, life insurance will support you to start a new life! So get one!

*Investment- if you have extra money, then you could start to look for something new to start to grow your money. You may want to acquire solid assets like houses, cars, business, etc. Or you may participate in the Stock Market where you could earn high returns of your money but also with high risk! But risk is manageable if you know how to deal and play with it which is easy to learn. For first timers, investing in Mutual Fund is advisable.

Yes! I got those three on the second quarter of the year. How? When I joined IMG, they have a business partner that caters to the three above. It’s an all-in-one program! I’m positive in getting the Kaiser Premium Health Builder. This is my SECURED investment/long-term investment. It’s giving me back a fix 10% annual compounded interest for 10 years or more. SECURED? Money put in this program is placed in stock bonds and other securities and is managed by professionals.

Note: Returns that yield a rate of interest from 12% below is a SECURED investment. Anything beyond that is a Risky one!

Point 2

The next thing I took advantage of is putting my money in Mutual Funds. If interested in joining the stock market but with no experience at all, mutual fund is what I recommend that you engage in.

Mutual fund is a professionally managed type of collective investment scheme that pools money from many investors and invests it in stocks, bonds, short-term money market instruments, and/or other securities. The mutual fund will have a fund manager that trades the pooled money on a regular basis. The net proceeds or losses are then typically distributed to the investors annually-Wikipedia.

My mutual fund at the moment is PhilEquity. It is the Philippine’s best performing equity fund in a 10-year, 5-year, 3-year category. Now, make your winning investment today!

Point 3

Having quite an ample of knowledge on financial education. I started to actively participate in the stock market. I have 2 mentors, friends and online buddies (forums) who helped me in how to deal with the stock market! I say, it’s addictive!

Investing in the stock market involves risk. Why? It’s giving you high return of your money! 12% more, even 100% , 200% and even more than that! That’s why it’s risky! Your loss might be equivalent to that rate. But in any market condition, it’s guaranteed that you will be earning! It’s just how you play it.

To date, I already earned 45% return of my stock investment in the span of 2 months. I was able to play around with Megaworld’s (MEG) stocks and yeah, profit-taking is done! Will be divulging information on stock trading in my next post!

RULE in Stock Market Trading: Buy LOW, Sell HIGH!

Links:

International Marketing Group (IMG)

Kaiser Premium Health Builder

Mutual Fund

PhilEquity

Since many are taking advantage with most of their investments due to profit-taking in the past week, we are expecting that the local stock market to pull lower. This is what we see from our point of view. Check the article below and say your piece:

LOCAL STOCKS ARE SEEN becoming increasingly vulnerable to profit-taking despite the rosy economic backdrop here and abroad, analysts said.

The main-share Philippine Stock Exchange index rose 2.41 percent last week to 2,850.01 after the Federal Reserve said the recession gripping the United States was easing.

“There are two bright spots in the fundamentalists’ glasses today. First, inflation is at record lows. Second, this has pulled policy interest rates to similar levels as well. Furthermore, there are other bright spots developing. Most recently, although exports were reported to continue to slow, the pace at which it does has dissipated. Concerns on the budget gap for this year has largely been addressed with the successful bond float,” said Justino Calaycay Jr., a dealer at Accord Capital Equities.

He said corporate earnings did not look too bad as listed firms remained generally profitable and profit levels were “a lot more hope-inducing” in the second quarter compared to the first.

“Yet, the charts suggests caution. Technicians are singing the correction chorus. Indeed, we are currently enjoying a 50-percent year-to-date gain, give or take. While such is evidence of the magnitude of the positive sentiment, it alternatively raises the flag with ‘beware’ boldly written on it. A decline of a big magnitude is not entirely discounted,” Calaycay said.

Calaycay added that the market could go either way but noted that the bias would be toward a downside in the near-term but over the medium- to long-term, the momentum was still favorable.

Banco de Oro Unibank chief strategist Jonathan Ravelas said last week’s close suggested a test of the 2,875 to 2,900 levels.

“However, trading volume shows the current rally is waning. This is supportive of a topping out market,” Ravelas said.

A clear break of 2,780 would suggest that a reversal was in place, Ravelas said. Doris C. Dumlao

Entry Credit: http://business.inquirer.net

Mixed trading expected on lack of catalysts

THE LOCAL market is expected to continue trading within its current range as some investors might book profits due to lack of catalysts.

Analysts, however, said select issues might trim the market’s losses or help it close higher.

“For [this] week, the market is expected to take a breather on lack of catalysts as the central bank has already hinted there will be no rate movement when they meet on [Thursday],” DBP-Daiwa Securities, Inc. said.

The brokerage said this, along with a shortened trading week, would make investors wary of entering the market or allowing their investments to stay long in equities.

There will be no trading on Friday, which is a holiday to commemorate the death anniversary of Benigno “Ninoy” Aquino, Jr.

Selling, DBP-Daiwa Securities noted, had become evident since last week, with foreign investors posting a net selling of P1.15 billion, reversing the P707 billion in net buying the previous week.

“[They] have started taking advantage of the market’s recent rallies [as an opportunity to book their gains],” it said.

DBP-Daiwa Securities also pointed out that as far as seasonal factors are concerned, August has never been on the side of investors since historical data during the past 21 years showed the market declining during this “ghost” month.

With activity expected to slow down this week, Prince Anthony A. Yeung of AB Capital Securities, Inc. said buying would likely be focused on “select stocks with specific plays,” especially now that it remains to be seen whether the US market’s main indices could post new highs.

The US market closed lower on Friday after reports showed that consumer confidence slipped during the early part of the month. The Dow Jones industrial average shed 0.82% or 76.79 points to 9,321.40.

The Standard & Poor’s 500 index dipped by 0.85% or 8.64 points to 1,004.09, while the Nasdaq composite index shed 1.19% or 23.83 points to 1,985.52.

Despite some investors booking their gains last week, the Philippine Stock Exchange index managed to close 2.41% higher week-on-week to settle at 2,850.01.

For this week, however, Mr. Yeung said: “On the local front, there also would not be much catalyst for the local market to move higher [especially] since the Bangko Sentral ng Pilipinas will most probably leave interest rates unchanged.”

The Monetary Board of the central bank is meeting this Thursday to revisit key rates.

The Manila Electric Co. (Meralco) and Philex Mining Corp., which pushed up the index, might remain the focus of investors, however.

Meralco and Philex Mining are being rumored to be the subject of a bidding war by two of the Philippines’ most influential businessmen: San Miguel Corp. President Ramon S. Ang and Metro Pacific Investments Corp. Chairman Manuel V. Pangilinan.

“It seems that the market [would find it hard to go beyond] the 2,900 level [although] it would [be able to] find some support at 2,800. This will most probably be the narrow range that the market would move within this week,” Mr. Yeung said.

Nonetheless, DBP-Daiwa Securities said it welcomes the anticipated correction since the market needs to take a breather after an increase of 17.11% since the start of the second half.

“Should the market correct this week, we recommend that investors buy on the dip since the upward trend of the index has remained intact while the global economy slowly shows signs of improvement,” DBP-Daiwa Securities said.

Entry Credit: http://www.bworldonline.com

Stocks down on profit-taking

Philippine stocks fell on Friday as investors cashed in on gains made a day earlier when shares soared following the US Federal Reserve’s upbeat assessment of the US economy.

Concerns over a bigger budget deficit in 2010 also triggered a selloff, analysts said.

The benchmark Philippine Stock Exchange index or PSEi lost 0.21%, or 6.05 points, to 2,850.01, while the all-shares index slipped 0.27% to 1,806.98. A total of 3.4 billion shares worth P2.69 billion changed hands. Decliners led advancers 55 to 46, while 57 shares did not move.

“The slight slide in the share prices today was brought about by profit-taking by investors following the recent market advance, [especially after Fed announced that the US, the world’s biggest economy, is stabilizing],” Grace C. Cerdenia, chief operating officer of online brokerage firm 2TradeAsia.com, said.

The Fed said Thursday that US economic activity was leveling out, allowing rates to remain at near zero for an “extended period.” That drove a rally in Asian markets that day, including the Philippines.

Ms. Cerdenia said investors unloaded their portfolios after economic managers raised the target budget shortfall to P233.4 billion for next year from P208.4 billion, as part of the government’s economic pump-priming efforts.

Justino B. Calaycay, Jr., analyst at Accord Capital Equities Corp., said investors bracing themselves for a slump in share prices during the traditional “ghost” month of August contributed to the price pullback.

Since investors normally stay on the sidelines in August, news pointing to a global economic recovery won’t help, he said.

“There is already a general consensus that we are not going into a recession, and this was already factored in by the investors,” Mr. Calaycay said.

Select industrial, as well as mining and oil issues, pulled down share prices, with the Manila Electric Co. weighing down on the market with an 8.61% loss.

Industrial stocks lost 2.59%, or 111.46 points, to 4,186.82, while mining and oil tumbled by 2.72% or 233.14 points.

GMA Network, Inc., Philex Mining Corp., First Gen Corp., class “A” shares of Lepanto Consolidated Mining Co., Vista Land and Lifescapes, Inc., Aboitiz Power Corp., and Globe Telecommunications Co. all pulled down the PSEi.

On the other hand, International Terminal Container Services Inc., which advanced by 6.49%, led upward movers among index stocks.

Other PSEi stocks that gained on Friday were Ayala Corp, Ayala Land, Inc., SM Prime Holdings, Manila Water Co., Rizal Commercial Banking Corp., Banco de Oro Unibank, Inc., Robinsons Land Corp., Jollibee Foods Corp., and SM Investments Corp.

Entry Credit: http://www.bworldonline.com

If you’re new to the world of Stock Market, you might be hearing the term “ghost month” by the investors/traders circle. Well, we visited some sites on how they view the Ghost Month as it influences business market for many. Read below:

* This years Ghost month starts on August and ends September.

The Ghost Festival is a traditional Chinese festival and holiday, which is celebrated by Chinese in many countries. In the Chinese calendar (a lunar calendar), the Ghost Festival is on the 14th night of the seventh lunar month.

In Chinese tradition, the seventh month in the Chinese calendar is called the Ghost Month, in which ghosts and spirits, including those of the deceased ancestors, come out from the lower world to visit earth. The Ghost Festival is the climax of a series of the Ghost Month celebrations. Traditionally, ancestor worshiping was an important part of the festivals, with activities including preparing ritualistic offering food, and burning hell money and bags containing cloth to please the visiting ghosts and spirits of the ancestors, as well as other deities. A very solemn festival of ancestor worshiping, the festival nevertheless represents a connection between the ancestors and the descendants, the living and the dead, earth and heaven, as well as body and soul.

So why does this matter to you? Well ghost month is embedded in the chinese tradition where you’re not supposed to spend unnecessarily during the ghost month. this really does happen every lunar ghost month of the year, as some foreign (Asian) funds do not like to make investments at this time. Stock trading is considered an unnecessary expense what this means for traders is less liquidity. If there’s nobody there to really buy up a stock then there’s really no way for stocks to go but sideways or even…. DOWN

Credit to: http://financemanila.net

*Bearish mood to persist as ‘ghost month’ rolls in

TRADING AT the stock market this week would still be influenced by crude prices and the performance of US stocks, analysts said, but consolidation is also expected during this “ghost month.”

“The outlook for the market remains bearish for the long and medium term,” said Jose L. Vistan of AB Capital Securities, Inc. “Short-term view looks cautiously positive as the near-term rally seems to be on shaky legs.”

He added that although last week’s rally might continue this week, the market still lacks the solid fundamentals to make it snap out of its downtrend.

The composite index last week made a surprising gain of 2.8% or 71.49 points to 2,584.21 as local investors focused on crude prices on Friday, ignoring the drop in US stocks.

Credit to: http://www.bworldonline.com

* Ask advice with any old timer in stock market and he’ll tell you to stay away from stocks during the Chinese ghost month. Indeed, the table below shows that stocks tended to perform poorly during this period (12 out of the last 19 years), registering an average loss of 4.1 percent.

PHISIX Performance during the Hungry Ghost Months (1987 – 2005)

*Source: Technistock, Philequity Research

Double whammy

This year is a double whammy of sorts because of the occurrence of a double ghost month. The Chinese lunar calendar (as the name implies) follows the cyclical movement of the moon. Therefore, in the Chinese calendar, a year has a total of 354 days or 11 to 12 days shorter than the solar year. To balance the lunar and solar calendars, a leap lunar month is added every three years. And this year, the leap month occurs in the seventh month with the regular seventh month from July 25 to August 23 and a leap seventh month from August 24 to September 21.

So far, the Philippine Stock Exchange Index (PSEi) is up 3.9 percent since the ghost month started last July 25. Will it stay up or will the jinx of the ghost month finally haunt it in the end? Only time will tell.

Trading simulation

Heeding the old advice of staying out of the stock market during the ghost months should have earned investors more money in their pockets. A simulation below shows that if one peso was invested in the PSEi in 1987 and a strategy of selling before the ghost month and buying it back afterwards was employed, the investment would now be worth P15.10 (or an annual compounded rate of 14.8 percent). Meanwhile, a simple buy-and-hold strategy would have resulted to only P5.01 (or an annual compounded rate of 8.6 percent).

Credit to: http://www.yehey.com/finance

*August is known to be the Chinese ghost month where the perception is that liquidity and the index takes a breather due to the Chinese tradition. However, it has been proven that this phenomenon does not have its usual hold on the market anymore. How will it be this year?

Credit to: http://www.absolutetraders.com

Federal Reserve announcement fuels rally

SHARE PRICES closed 0.97% higher yesterday as investors took their cue from overseas markets and an upbeat assessment of the US economy by the Federal Reserve, dealers said.

The benchmark Philippine Stock Exchange index rose by 27.54 points to 2,856.06. The all shares index rose by 0.94%, or 17.02 points, to 1,811.94.

A total of 3.80 billion shares worth P3.12 billion were traded.

Advancers led decliners 71 to 32 while 51 issues closed unchanged.

“It was influenced in a way by markets abroad, specially after the [US Federal Reserve] statement on the economy,” Jose Vistan of AB Capital Securities told Dow Jones Newswires.

“But with the Fed meeting over and most corporate earnings out, there is little in terms of catalyst for the market in the coming days. Expect profit taking.”

The Fed on Wednesday said it would keep its super-low interest rate on hold for a while but gradually end its program of Treasury bond purchases, adding the world’s biggest economy was stabilizing.

Wall Street stocks rallied. The Dow Jones industrial average gained 1.30% or 120.16 points to 9,361.61.

The Standard & Poor’s 500 index climbed by 1.15% or 11.46 points to 1,005.81, while the Nasdaq composite index gained 1.47% or 28.99 points to 1,998.72.

Emmanuel P. Soller of Equitiworld Securities, Inc. however pointed out that the US market serves only as a guide for the local market, even if its rallies usually prompt the same locally.

“The US market’s drops are used by investors to take their profits out. But overall, the local market remains [upbeat],” he said.

Selling pressure builds up, he pointed out, whenever the market nears the 3,000 mark because investors want to book their profits and not because they feel the future looks bleak.

“Investors play safe but this selling pressure will just be temporary unless there is negative news significant enough to make investors pessimistic of the market again,” Mr. Soller said.

Only one of the six subindices tumbled.

The service sector rose by 2.41% or 34.30 points to 1,456.80, while holding firms climbed by 2.16% or 32.44 points to 1,533.84.

The mining and oil sector gained 0.41% or 35.83 points to 8,582.25, while financial stocks advanced by 0.32% or 1.98 points to 606.66.

Property shares added 0.26% or 2.57 points to 977.87.

Industrial companies, however, tumbled by 0.43% or 18.71 points to 4,298.28.

Most blue chips closed higher.

Andrew Tan-led Megaworld Corp. added 2.98% or four centavos to P1.38, while index heavyweight Philippine Long Distance Co. climbed by 2.01% or P50 to P2,530.

Sy-led Banco de Oro Unibank, Inc. gained 1.47% or 50 centavos to P34.50.

Ayala Land, Inc. did not move at P9.40, as well as sister firm Bank of the Philippine Islands, which stayed at P46 apiece.

Manila Electric Co. fell by 2.4% or P6 to P244, while the Metropolitan Bank & Trust Co. tumbled by 1,.29% or 50 centavos to P38.

Maria Arlysa E. Narciso of AB Capital Securities, Inc. disagreed with AB Capital Securities’ Mr. Vistan, saying developments in the foreign markets as well as local earnings reports would continue to be major drivers for the local market.

“Earnings became the highlight of the week and reflected second-quarter impact of the slowdown on economic and business activity. Keep an eye on food-related companies as this could perform well in the coming months,” she said.

Entry Credit: http://www.bworldonline.com

Big time stock market veterans might be on the verge of bid war in acquiring shares of ownership with Philex Mining (PX). Be expecting the two big group who are suspected to be responsible on Meralco’s (MER) sudden boom in price value for the past months will continue to do some bidding business!

To quote a post from pinoymoneytalk.com”

In just one week, the price of PX has ballooned by 36%, closing today (August 11) at P10.75.

Look at the recent 3 trading days’ price increase of PX:

* August 7: Closed at P9.00; up 13.9% from previous trading day
* August 10: Closed at P9.90; up 10.0%
* August 11: Closed at P10.75; up 8.6%

Are you interested in buying PX now? Buy at 10.50 or below. Target to sell at 12. But hold to buy at 9 just in case it goes south. Note, PX is quite into the bullish trend and our current market is not yet so BULLISH yet. So how much more if it is? Profit! This is just my view, if you take it, it’s up to you. Happy trading!

This is an excerpt on the news published by www.gmanews.tv regarding President GMA’s undeclared wealth in houses and in stocks.

Few profitable firms

The president, according to SEC records updated as of October 2008, still has business and financial connections in at least five entities: Optima Research & Consultancy Agency, Inc., incorporator as of Sept 15, 1980; L.T.A. Realty Corp., incorporator, as of Sept. 28, 1992; EVA Development Corp., incorporator/board member, as of May 18, 1993; Circulo Pampangueno of Guam, Inc., board member, as of Sept. 29, 1997; and Centrist Democrat International Asia-Pacific, Inc., stockholder, incorporator, board member, as of July 24, 2005.

The First Gentleman, by the SEC’s records, still has business interests and financial connections in at least nine entities: Trans Realty Co., Inc., incorporator, as of Oct. 8, 1980; Raco-Trading Philippines, Inc., incorporator, as of Oct. 9, 1980; L.T.A. Realty Corp., incorporator, as of June 28, 1982; Aviatica Travel & Management Corp., incorporator, as of July 22, 1987; Eva Development Corp., incorporator, board member, as of May 18, 1993; Philippine Blooming Trade and Development Corp., incorporator, as of Sept. 5, 1995; and Pacific Mint International Corp., incorporator, board member, as of May 15, 1997.

The First Gentleman is also connected with three foundations: Ateneo Law Class ’72 Foundation, Inc., board member, as of March 14, 1996; Kaibigan ni Gloria Macapagal Arroyo Foundation, board member, as of May 17, 1999; and First Gentleman Foundation, Inc., incorporator, as of May 28, 2002.

All these firms are not listed in the SALNs that Arroyo filed from 2001 to 2008. But since most are not particularly big or profitable, they could not have served as sources of the First Couple’s additional cash or equity shares.

Could she forget that she owns a couple of shares on the above-mentioned companies? These are all speculations for now until further investigation proves it. Now, do you find investing in stock market as one of the profitable way to earn big (think of dividends)? Let’s start and make also our own way to stock market investment.

Prices tumble after US stocks decline anew

SHARE PRICES succumbed to profit taking yesterday with investors taking their cue from Wall Street, which extended its decline, analysts said.

The benchmark Philippine Stock Exchange index lost 1.11% or 32.02 points to 2,828.52, while the all shares index slipped by 1.01% or 18.36 points to 1,794.92.

A total of 4.74 billion shares worth P2.82 billion were traded with net foreign selling summing up to P316 million.

Decliners led advancers 67 to 33, while 65 shares did not move.

“We just tracked the US market. Its almost a hundred-point drop put pressure on our market,” Ivan I. Nario of BDO Securities, Inc. said.

“This could be the start of the long-awaited correction since investors just follow the momentum of [both the overseas and local markets].”

Mr. Nario said the US market is showing some signs of volatility, making investors cautious.

As such, they might sell their positions if they see the prices not going up. After all, Mr. Nario pointed out, the PSEi has broken above the 2,600 and 2,800 levels, which most analysts earlier said would be the best scenarios for equities this year.

“We have been in the overbought level for sometime already, although there is still liquidity in the market that is why there is not much selling pressure,” he said.

Jun B. Calaycay of Accord Capital Equities Corp. said the inability to break above current resistance levels means investors don’t believe share prices would rise so much.

Investors, he said, could be bracing themselves for slumping prices during the “ghost” month of August.

“But despite that, there is no massive sell-off. The market is just trading within a very narrow band and I think those who have bought in are still holding on to their shares, hoping that after the ghost month, the market will resume its upward move since the general economy is already doing well,” he said.

A gloomy forecast for the US banking industry pulled down financial stocks on Tuesday night. The Dow Jones industrial average shed 1.03% or 96.50 points to 9,241.45.

The Standard & Poor’s 500 index slipped by 1.27% or 12.77 points to 994.33, while the Nasdaq composite index tumbled by 1.13% or 22.51 points to 1,969.73.

At home, industrial shares lost 2.32% or 102.54 points to 4,316.99, while holding firms slipped by 1.73% or 26.44 points to 1,501.40.

Mining and oil stocks declined by 1.42% or 123.94 points to 8,546.42, while property shares tumbled by 1.21% or 12.03 points to 975.30.

The service sector dipped by 0.11% or 1.61 points to 1,422.50.

Financial stocks, on the other hand, managed to climb by 0.27% or 1.66 points to 604.68.

Most blue chips closed lower.

Manila Electric Co. declined by 4.76% or P12.50 to P250, while Andrew Tan-led Megaworld Corp. lost 1.47% or two centavos to P1.34.

Sy-led Banco de Oro Unibank, Inc. slipped by 1.44% or 50 centavos to P34, along with Ayala Land, Inc., which fell by 1.05% or 10 centavos to P9.40.

Index heavyweight Philippine Long Distance Telephone Co. lost 0.2% or P5 to P2,480.

Philex Mining Corp. did not move at P10.75, after pushing up share prices the previous day. Likewise, Metropolitan Bank & Trust Co. stayed at P38.50 per share.

The Bank of the Philippine Islands, on the other hand, added 1.09% or 50 centavos to P46.

Entry Credit: http://www.bworldonline.com

Profit taking caps gains by mining stocks

SELECT MINING issues managed to push up share prices yesterday despite investors pocketing gains due to lack of positive leads, analysts said.

The benchmark Philippine Stock Exchange index (PSEi) gained 0.34% or 9.96 points to 2,860.54, while the all shares index added 0.32% or 5.82 points to 1,813.28.

A total of 7.93 billion shares worth P5.45 billion were traded. Net foreign selling widened to P323 million.

Advancers led decliners 57 to 43, while 66 shares did not move.

“The upside came from mining-related stocks, led mostly by Philex Mining Corp.,” Eunika B. Maloles of 2TradeAsia.com said.

“The rally, however, was tempered by [profit takers] who took their cue from the [drop in Wall Street stocks on Monday night].”

Doreen Mijares of IGC Securities, Inc. said the PSEi’s gain was minimal since most mining stocks are not part of the index.

The mining and oil sector climbed the most yesterday, surging by 5.8% or 475.89 points to 8,670.36, buoyed mainly by Philex and Lepanto Consolidated Mining Co.

Philex jumped by 8.58% or 85 centavos to P10.75. Lepanto “B” shares, open to all investors, climbed by 6.45% or two centavos to 33 centavos, while “A” shares, exclusive to locals, also added 3.22% or a centavo to 32 centavos.

Both companies recently figured in newspaper headlines. San Miguel Corp. President Ramon S. Ang said he was interested in acquiring a stake in Philex. Lepanto, meanwhile, confirmed rumors that Hong Kong-based First Pacific Ltd. Co. is interested in making an investment in the mining firm.

Other mining-related issues that rallied yesterday included Nihao Mineral Resources International, Inc. that jumped by 16.66% or P1.75 to P12.25 and Abra Mining and Industrial Corp. that rose by 10% or P0.0005 to P0.0055.

But with the market having already reached an overbought level, Ms. Mijares said it is bound to correct, which explains the PSEi did not close higher despite reaching an intraday high of 2,873.53.

“Right now, our outlook for the market is it will continue to correct but it will not fall steeply since those investors who were left behind when the market was rallying will view whatever correction as an opportunity to enter,” Ms. Mijares said.

Profit taking also pulled down Wall Street stocks on Monday. The Dow Jones industrial average lost 0.34% or 32.12 points to 9,337.95.

At home, holding firms climbed by 0.41% or 6.25 points to 1,527.84.

The service sector added 0.35% or 5.10 points to 1,424.11, while industrial shares rose by 0.005% or 0.23 point to 4,419.53.

Financial stocks, on the other hand, dipped by 0.24% or 1.47 points to 603.02, while property shares slipped by 0.13% or 1.37 points to 987.33.

Blue chips closed mixed, with index heavyweight Philippine Long Distance Telephone Co. rising by 0.2% or P5 to P2,485.

Manila Electric Co. did not move at P262.50.

Ayala Land, Inc. was flat at P9.50, along with sister firm the Bank of the Philippine Islands, which stayed at P45.50.

Rival bank Ty-led Metropolitan Bank & Trust Co. remained at P38.50 apiece.

Andrew Tan-led Megaworld, on the other hand, lost 1.44% or two centavos to P1.36, along with Sy-led Banco de Oro Unibank, Inc., which dipped by 1.42% or 50 centavos to P34.50.

Entry Credits: http://www.bworldonline.com

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